Mid-market commentary July 28

Stock markets kicked off on a positive note and witnessed gradual upbeat to trade marginally higher. Nifty hit 8650 mark and is hovering around those levels. Sensex has gained 100 points and surged to 28133 levels. Broader markets see outperformance where Midcap and Smallcap have surged nearly 0.9 per cent. Market breadth remained positive with 1495 advances and 873 declines.

On the global front, Yellen’s hawkish stance on interest rate has boosted the markets while now investors hold expectation from the Bank of Japan to announce policy stimulus.

On the sectoral front PSU Banks and Realty sectors have gained the most with 1 per cent plus gains. SBI and Orient Bank surged more than 2 per cent. Realty stock Indiabulls Real Estate surged 5 per cent. Metal and IT are marginally down with 0.34 and 0.16 per cent losses respectively.

Nifty top gainers: Asian Paints surged 6 per cent after posting positive Q1 results on July 27. Infratel too soared 4.7 per cent post results. Auto majors Maruti and Eicher Motors followed with 3.5 and 2.5 per cent gains respectively.

Nifty top losers: TATAMTRDVR, L&T and Axis Bank have fallen more than 1 per cent. BPCL, Tata Motors followed with 0.9 and 0.8 per cent losses respectively.

Nifty is heading towards rise but may see some volatility in today’s session. Going forward we hold 8665 followed by 8720 mark as the resistances. On the downside, 8570-8550 will act as the immediate supports provided Nifty falls below 8595 as the resistance turned support.

Stocks to watch:

Punjab National Bank: The bank has posted its Q1FY17 results with positive QoQ and YoY revenues at Rs 11574.94 crores; while net profits have recovered from previous quarter’s losses at Rs 306.36 crores. Still YoY net profits have seen a drop of more than 50 per cent.

VRL/GATI/Snowman: The logistics companies like VRL, GATI and Snowman have surged after the cabinet dropped 1 per cent inter-state tax from the Constitution Amendment Bill.

Reliance Communications: According to media reports SBI will refinance debt of Rs 28000 crores that will be given to the new entity after the merger of RCom and Aircel takes place.

MCX: The limit of individual foreign investment limit has been increased from 5 per cent to 15 per cent in Indian stock exchanges. Cabinet has passed the same on July 28.

Pharma stocks: According to media reports FDI in Brownfield pharma sector has been allowed up to 74 per cent under automatic route and FDI beyond 74-100 per cent is allowed under government approved route. Stocks to get a positive jerk with the news.