Mid-market commentary July 1
July series kicked off on a positive note where Nifty opened above 8300 mark while Sensex too opened above 27000 breaking their 10 month highs. Currently the benchmark indices are up by 0.8 per cent, where Nifty has hit 8350 and Sensex has gained more than 200 points.
Midcap index has outperformed with 1.35 per cent gains while Smallcap remains in line with the benchmark indices at 0.9 per cent gains. Market bias gives obvious uptick with 1534 advances and 869 declines.
Asian markets continued to rally amid recovery from BREXIT shock. Nikkei 225 was up 0.7 per cent while Hang Seng surged 1.75 per cent. Shanghai Composite remained flat to positive. Again Pound witnessed pressure after the Bank of England hinted interest rate cut in the coming policy. Europe too opened on a positive note.
All the sectors traded in green. FMCG continued to rally and is the top gainer with almost 2 per cent gains. Infra, Energy, Metal, Pharma followed with 1 per cent plus gains each. IT and Auto remained marginally up with 0.4 per cent gains each.
Top Nifty gainers: Dr Reddy's gained the most with 3.5 per cent upmove. ITC, GAIL, BHEL and L&T follow with 2 per cent and more gains.
Top Nifty losers: Kotak Bank tumbled the most with 1 per cent loss. TCS, HDFC, Coal India and Maruti followed with marginal losses.
We had talked of 8350-8360 as our next upside target for the Nifty. Accordingly, Nifty hit 8350 mark in Friday’s session. Now if Nifty sustains 8335 on closing basis we hold 8500-8525 as our near term target. It’s a breakout on weekly basis and hence if markets correct for a pullback we hold 8190 as a level for a bounce. For now 8285-8215 to act as the supports.
Stocks to watch:
Escorts: The Agri Machinery segment of Escorts has posted a 12.2 per cent growth in its volumes in June 2016 where it sold 6890 tractors as against 6139 tractors in June last year to the domestic clients. However, exports have dropped to 56 tractors in June 2016 from 99 tractors in June 2015.
Berger Paints: The company has duly completed the transfer of its paint segment which is related to 4 wheelers passenger cars & SUVs, 2 wheelers and ancillaries to BNB Coatings India Pvt. Ltd., on June 30 after business hours.
HDFC Bank: HDFC Bank has opened SM Bank, its first full-fledged digital banking service for small-and medium enterprises (SME) for instant access to the services.
Jaiprakash Associates: BSE has asked the company for clarification on the media reports stating that the company’s 15900 crores deal with Ultratech Cements has hit hurdles. Stock of Jaiprakash Associates has tumbled by 3 per cent.
Eicher Motors: The company’s Royal Enfield's sales increased by 36 per cent to 50682 units in May 2016. The company's motorcycle sales increased by 38 per cent to 147483 units in Q1FY17 on yearly basis.