Mid-market commentary Aug 31

Yet again Indian markets have hit new highs where Nifty and Sensex hit 8800 and 28490 levels. Broader markets too have hit new all-time highs and maintained outperformance. Among sectors Auto and Media have driven the move with 1 per cent plus gains. Tata Motors and Ultratech Cement have surged the most with 3 per cent and more gains.

We have GDP data to be released on Aug 31 later in the day. The national income for the first quarter of the fiscal year is expected to have picked up, thereby taking GDP beyond 7.6 per cent. The positive structural reforms, normal monsoon, justifiable corporate earnings and GST will drive the numbers.

Nifty has broken our major resistance at 8730 followed by 8765 levels. Now we hold 8845-8850 as our next resistance if Nifty sustains above 8800 on a closing basis. On the downside, 8730 will act as the resistance turned support.

Stocks to watch:

Zee Entertainment Enterprises: The media and entertainment company has announced sale of its sports broadcasting business currently held under its wholly owned subsidiaries Taj TV and Taj Television India to Sony Pictures Networks India for a consideration of 385 Million USD. The stock may soar during the session.

GlaxoSmithKline Pharmaceuticals: According to media reports the company has invited a bid for 60 acre land parcel in Thane valued at Rs 1400-1800 crores.

GVK Power Infrastructure: The company has posted its Q1FY17 results, wherein its net sales have increased 2.8 per cent; while net loss has risen from Rs 3.09 crores to Rs 51.04 crores YoY. However, the stock has increased 5 per cent.

Ultratech Cements: RBI has increased FII investment limit in the company up to 30 per cent. The stock has become the top gainer post news and has surged by 4.3 per cent.

RBL Bank: RBL Bank has listed at 22 per cent premium than its issue price of Rs 225. The scrip opened at Rs 273.70 and is currently trading at Rs 301.50 levels.