Mid Market commentary May 30

Last week’s upbeat was carried forward in the Indian stock markets where Nifty hit 8200 mark and corrected thereafter. SENSEX too hit just below 26800 mark. Currently the benchmark indices remain steady with a flat to positive movement. Among broader markets Midcap trades are in line while Smallcap index has outperformed with 0.3 per cent gains. Market bias remains positive with 1129 advances; and 1069 declines.

Asian markets were a mixed bag but majorly opened on a positive note amid strengthening of Dollar against most Asian currency peers. Nikkei 225 surged more than 1 per cent after Yen depreciated on the news that the hike in country’s consumption would be delayed. All other indices remained marginally up.

On the sectoral front, Indian Metal and IT sectors surged 1.8 and 1.3 per cent respectively. Metal sector remained up in the wake of 10 per cent up move in Hindalco post positive results. On the contrary Media sector tumbled 1.1 per cent.

Nifty Top Gainers: Apart from Hindalco, Coal India surged 4.3 per cent. Tech Mahindra, Tata Motors and Tata Motors DVR follow with 2.7 per cent plus gains each.

Nifty Top Losers: BHEL and HDFC are the top losers with more than 3 per cent losses. ZEEL and Adani Ports follow with 2 per cent and more losses each. BPCL too falls noting 1.7 per cent losses.

Nifty can give a pullback for another upside rally. In that case we hold out immediate support at 8015-8000 provided Nifty falls below 8150 mark. On the upside, 8200 followed by 8340 will be the next upside target for the Nifty.

Stocks to watch out:

Coal India: Coal India has increased weighted average price of coal by 6.3 per cent to generate higher revenue where earlier the prices had been reduced due to coal glut. The stock is likely to remain in focus for the day.

ONGC: ONGC announces a plan to buy majority stake in GSPC’s Krishna-Godavari basin gas block. The deal would avoid Gujarat Government’s Rs. 19500 cr debt turning into NPA.

Suzlon Energy: The China Light & Power (now CLP) is about to finalise its solar debut by buying stake in 100 MW solar park project in Telangana from Suzlon Energy.

Claris Lifesciences: The company recently announced receipt of Establishment Inspection Report from US FDA. The facility near Ahmedabad was found to be acceptable. The stock surged more than 18 per cent.

Sequent Scientific: The pharma company gained 3 per cent after the company’s subsidiary announced acquisition of 60 per cent stake in Karizoo Group, Spain.