Mid-Day market watch on May 03, 2016

Indian stock markets are cheering after a three-day losing streak. Nifty and SENSEX started off on a positive note and saw a dynamic upside in the first one hour itself. Currently both Nifty and SENSEX are trading with positive bias but have cooled off from early gains. Nifty is hovering around 7850 mark while SENSEX is stuck below 25600 mark.

Market breadth turns positive with 1509 advances; and 719 declines i.e. in the ratio of 2:1. Midcap sector is outperforming the benchmark indices with 0.87 per cent gains. 

Among sectors, Infra  is outperforming the markets with 2 per cent sectoral gains. Tata Power leads the Infra segment with 4 per cent gains. Realty, PSU Banks and Auto follow with 1 per cent plus gains each.

On the contrary, defensives like Pharma, FMCG and IT sector have tumbled marginally with nearly 0.5 per cent losses.

Top Nifty Gainers: Pharma major Auro Pharma is the top gainer with 4.6 per cent gains. Tata group companies viz; Tata Power and Tata Motors DVR follow with nearly 4 per cent gains. Adani Ports too is supporting the upside, and has surged by 2.8 per cent ahead of quarterly results. Bharti Airtel is the fifth top gainer with 2.7 per cent gains.

Top Nifty Losers: Where Auro Pharma is the top gainer other Pharma majors are held responsible to refrain Nifty from gaining further. Dr Reddy's, Sun Pharma and Lupin are the top losers. BPCL and Kotak Bank follow with nearly a 1 per cent loss.

Asian markets have recovered after four consecutive downbeats following a positive lead from Wall Street U.S markets, which closed on a positive note despite the persistent decline in Apple.

Oil prices have risen with Dollar sliding below 18 months low against Yen.

THE FIVE BUZZERS

A) Rolta India: Rolta Wins 7 year GIS contract from U K Power Networks to manage and update their spatially-enabled network asset information. The stock has surged by 13 per cent since morning session.

B) Aurobindo Pharma: Auro Pharma has surged 4 per cent and has grabbed top position after Credit Suisse and Goldman Sachs initiated coverage with Outperform and Buy rating. Auro Pharma is the analyst favoured stock for now. 

C) Tata Power: It has won an order from Border Security Force to supply hand-held thermal imagers. The stock is likely to remain in focus for rest of the day.

D)TVS Motors: Monthly domestic sales for April have increased  by 21.6 per cent. Sales have risen from 162516 units to 197692 units.

E) Adani Ports: Adani Ports has quarterly earnings results due for declaration today, and is a major stock to be watched out for. The stock is already up by 3.5 per cent ahead of results.

Nifty seems to have taken a support at our mentioned levels of 7780-7775 in yesterday’s session. Going forward we hold 7860 followed by 7885 levels as our next resistances. If the intraday correction continues we hold 7820 followed by 7780 as ur supports provided Nifty falls below 7820 mark.