Mid-market commentary Aug 26

Indian markets opened on a positive note but retreated from the very moment to trade in red, continuing with its previous fall. Markets have seen gradual lower tops and lower bottoms in the intraday trade. Broader markets are flat. On sectoral front, PSU Banks have tumbled the most by 1.3 per cent driven down by IDBI Bank that tumbled 5.6 per cent. Energy is trading against the market with 0.74 per cent gains pulled up by GAIL and RIL surging 3 and 1.3 per cent respectively.

Asian markets are majorly lower with Nikkei tumbling 1 per cent, but Hang Seng and Shanghai Composite are marginally higher. European markets opened in red but are trading marginally up where investors await Janet Yellen’s speech in Jackson Hole to decide upon the interest rate hike.

Nifty has broken our major support at 8570, and hence if Nifty closes below 8570, we may expect some more downside up to 8540-8515 on an immediate basis. In case of a rebound we hold 8626 followed by 8680 as the resistance.

Stocks to watch:

Tata Motors: The stock of Tata Motors has surged 1.8 per cent ahead of its Q1 results, where investors expect the JLR revenue to grow 5 per cent.

Lupin: The drug making company has recently received tentative USFDA approval for Generic Paxil CR tablets.

Trident: The shares of Trident have risen 14 per cent owing to media reports that the financial services company, Target Group has plans of shifting Welspun’s contract to Trident.

Eros International Media: According to  media reports, Eros International Media  has announced an integration deal with Reliance Jio. BSE has sought for a reply from the company. The shares have surged 2.8 per cent.

ICRA/CRISIL/CARE: The stocks of credit rating agencies have surged up to 15 per cent after RBI announced a package of measures for development of fixed income and currency markets. This is a inclusive set of guidelines to cut multiple issues.