Mid market commentary June 29
Indian markets opened with a gap-up, surged up to our mentioned resistance levels and retreated to trade in negative on an intraday basis. We had talked of 8190 as the gap filling level for the Nifty. Accordingly Nifty has hit 8187 and started off with the retreat. Currently the benchmark indices remain marginally up with 0.4 per cent gains.Broader markets continue outperformance with Smallcap and Midcap indices surging 1 per cent and 0.8 per cent respectively. Thereby market breadth remains highly positive with 1642 advances and 595 declines on BSE i.e. at a ratio of 2.7:1.
The global Gold and oil prices rose as investors across the globe preferred safe havens. Gold and Crude oil rose 0.3 and 1.5 per cent, respectively. Rupee has marginally appreciated against Dollar at 67.79.On the sectoral front barring FMCG that is down 0.3 per cent dragged by the majors Dabur and ITC, which remain down by 2 and 0.9 per cent, respectively, other sectors are harvesting gains. Realty has surged the most with 3.6 per cent gains with a spurt in DLF by 8.5 per cent. DLF surged amid news of Rs 10000 crore fund infusion by Billionaire K.P. Singh. Unitech, HDIL and Sobha too have risen between 4-6 per cent.
Nifty top gainers: Auto majors Bosch and Hero MotoCorp surged 4.5 and 2.9 per cent, respectively. Hindalco, NTPC and ZEEL follow with 1.6 per cent and more gains, each.
Nifty top losers: ITC remains the top loser with 0.96 per cent losses. HUL and Coal India follow with 0.7 per cent losses each. Ultratech Cements and HCL Technologies are down half per cent each.
Asian markets saw a steady growth followed by positive closure in Europe and US markets with easing of Brexit jitters. Asia rose as investors betted that the central banks would take some monetary easing after the 3 trillion USD shock to the global markets in two days. Nikkei 225 is up 1.5 per cent while Hang Seng remains positive with almost 1 per cent gains. Shanghai Composite is up 0.6 per cent.
Nifty has filled the gap, but could not sustain above 8187-8190 levels. Hence we may see some correction if Nifty falls below 8150 on closing basis. In that case we hold 8090-8050 as the immediate supports. On the upside, if 8190 is broken we hold 8285-8360 as the upside targets.
Stocks to watch:
Suven Life Sciences: The company has announced the grant of 3 product patents; 1 from Europe and 2 from Eurasia for treatment of Neurodegenerative disorders. The stock is likely to remain in the limelight for the session.
L&T: The information Technology arm of L&T, L&T Infotech is set to launch an IPO for subscription from July 11 to July 13. It’s a good brand creation for L&T as a whole.
Ashapura Minechem/Maithan Alloys: The mining stocks like Ashapura Minechem, Maithan Alloys, Sandur Manganese, Iron Ores, Indian Metals and Ferro Alloys surged after Union Cabinet cleared a new mineral exploration policy to allow private companies to carry out standalone exploration.
Thomas Cook: The stock is likely to remain in focus as its subsidiary Quess Corps has hit the D-Streets on Wednesday to raise its 400 crores through IPO.
IL&FS Transportation Network: The company has informed that with a view to consolidate investments in road assets, its promoter has transferred 1.02 per cent equity stake held in Noida Toll Bridge.