Mid market commentary June 27
Markets witnessed yet another negative opening as a prolonged effect of the Brexit referendum. Despite of 2 per cent recovery on Friday’s intraday session, markets saw another fall in the morning tick. However, Nifty was open-low which suggested an intraday optimism. Thereby the benchmark indices recovered to trade on a flat to positive note.
Asian markets bounced back with the companies offering stable dividends gained buying spree. Investors are wary of the potential cash rate cut. Japan’s Nikkei surged more than 2 per cent. Hang Seng remained flat. China’s Shanghai Composite too rose 1.5 per cent. Europe too opens on a positive note where DAX and CAC are cautiously up.
Nifty and Sensex remain flat. The broader markets viz; Smallcap and Midcap outperform with 1.4 per cent and 0.75 per cent gains, respectively. In Smallcap segment Adhunik Industries, Dhampur Sugars, Jyoti Structure, Punjab Chemicals, Birla Corporation, Mercator surged more than 10 per cent each. In the Midcap segment, Bajaj Finserv and Hindustan Petroleum led the move with 5.5 and 4.7 per cent gains, respectively.
On the sectoral front IT refrains Nifty from holding 8100 mark. TCS has fallen 3 per cent and dragged the overall sector to trade in red with 1.3 per cent losses. TCS tumbled after the investment banker Bank of America- Meryll Lynch downgraded to underperform from Buy. Media and Auto follow with 0.6 and 0.2 per cent downside, respectively.
All other sectors are trading in green where Realty, PSU Banks and FMCG remain at the forefront with 1.2-1.9 per cent gains each.
Top Nifty gainers: Ultratech Cements gains the most with 3 per cent upmove. BPCL, Auro Pharma, SBIN and ACC follow with 2 per cent and more gains.
Top Nifty losers: Apart from TCS, ZEEL tumbles the most with 1.9 per cent losses. Infy, Power Grid and Bharti Airtel follow with 1 per cent and more losses each.
Nifty closed above its 50 days EMA at 8003 levels. Hence we maintain markets at sideways to positive provided Nifty sustains the resistance turned support levels of 7970-7990. Nifty can hit 7875-7860 level in case of a further drop. On the upside, 8150-8190 to act as the resistances for now.
Stocks to watch:
Man Infra: Man Infrastructure surged after the company said that it sees revenues doubling in FY 17 and also sees some rise in the promoters’ stake. The stock of Man Infra has surged nearly 10 per cent in the last couple of sessions.
Adani Ports: Adani group’s Adani Ports and Special Economic Zones informed BSE regarding release of its 50 lakh pledged equity shares. The stock surged 1.5 per cent.
L&T: L&T is likely to remain in focus as it has informed BSE that its construction arm L&T Construction got orders worth Rs 2416 crores.
JB Chemicals and Pharmaceuticals: JB Chemicals gives clarification to the news report that company’s Panoli tablet manufacturing facility got inspected with zero 483 i.e. approval by USFDA. The stock surged 7 per cent.
Aban Offshore: The shares of Aban rose after its arm Aban Abraham received deployment order of two years drillship from ONGC for amount of Rs 592 crores.