Mid Market commentary May 27
It is yet another dynamic impulse for the markets where both Nifty and SENSEX are up at 8130 and 26520 levels. Broader markets maintain outperformance where Midcap stocks have seen tremendous optimism. Market bias too remains positive with 1386 advances and 827 declines.
On the Asian front Nikkei shares rose marginally up with consistent weakness in Yen; and on account of P.M. Shinzo Abe delaying the sales tax hike by two years. Remaining Asia too continued on an upbeat ahead of comments from Janet Yellen; while Oil prices resisted at 50 USD.
Country’s biggest lender State Bank of India has its Q4 results today and is estimated to disappoint the street amid pressure on its asset quality. However, SBI is trading up since last three days and is today trading with nearly 1.2 per cent gains at Rs 186.
Sector wise, Pharma sector drives the move and has surged 3 per cent with Sun Pharma gaining 4.8 per cent. All other sectors except FMCG are trading in green. FMCG has tumbled 0.3 per cent dragged down by Jubilant Foodworks that fell 4 per cent.
Nifty Top Gainers: Oil marketing giant BPCL took over the top position in Nifty50 amid positive Q4 results. Sun Pharma and Adani Ports surged more than 4 per cent each. Other Pharma giants Auro Pharma and Lupin followed with 2 per cent plus gains each.
Nifty Top Losers: ONGC and Powergrid are the top losers with 1 per cent losses each. NTPC, L&T and ITC follow with 0.9 per cent losses.
Nifty has hit above our upside targets at 8000-8090. Now for medium term we hold 8320 as the next major resistance for the Nifty provided Nifty sustains above 8100 mark. On the downside, 8000 to act as the resistance turned support if 8050 is broken.
Stocks to watch:
Sun Pharma: Sun Pharma has surged 4 per cent as its Israel subsidiary Taro Pharmaceuticals reported growth in net sales YoY.
Lupin: Lupin has risen more than 2 per cent after the company received establishment inspection report (EIR) from USFDA for its Mandideep and Aurangabad facilities. Observations concluded that the facilities are good manufacturing practice compliant.
Titagarh Wagons: Railway stock Titagarh Wagon has gained 4 per cent after it announced a joint venture with Matiere S.A.S., France. The JV is to manufacture metallic and modular bridges in India.
Coal India: CIL is in talks with power companies in Bangladesh for striking supply deals. For the first time Coal India would be exporting the fossil fuel on a commercial basis.
Jet Airways: Jet Airways in its FY16 results has posted a net profit for the first time in 8 years and Q4 profits too have grown amid falling fuel prices and internal cost control measures.