Mid-Day market watch on May 09, 2016

Markets seem to have started off on a fresh buying spree today. The Indian stock markets opened on a positive note after consolidating for three consecutive sessions in the last week. Nifty opened above 7755 mark and is currently hovering at a day’s high at 7840 levels. SENSEX too gained 360 points and is trading at 25590-25600 levels.

The market breadth has remained highly positive with 1541 advances and 727 declines i.e. in the ratio of 2:1. 122 BSE stocks remain unchanged. Midcap segment trades in line with the benchmark indices.

All the sectors are trading on a positive note where Financial Service sector led by HDFC; Bank Nifty stocks; and Private Banking sector remained at the forefront of the move. On an average the sectors rose 1.7 per cent. Only Pharma and Metals remain marginally up.

Top 5 Nifty Gainers: Banking continued to rise with Yes Bank surging 3.2 per cent after the passing of Bankruptcy code by Lok Sabha at the end of last week. HDFC, ZEEL, Bajaj Auto and L&T followed with more than 2 per cent gains each.

Top 5 Nifty Losers: None of the Nifty50 stocks have plunged more than 1 per cent. Dr Reddy's, IDEA and Cipla remained weak with 0.7 and 0.5 per cent losses.

Asian Markets were a mixed bag owing to Jobs data released by U.S. with negative numbers from 208k to 160k month over month. On the contrary Japan posted better than expected average cash earnings. Average cash earnings rose 1.4 per cent against forecast of 0.6 per cent. Except for Shanghai Composite that slid 0.9 per cent all other indices are trading in the green.

Nifty is trading near 7840 levels. We hold 7870 followed by 7890 as our immediate resistances for Nifty provided it sustains above 7835 mark. On the downside, 7780 followed by 7680 levels will act as the supports.

THE FIVE BUZZERS

Hours since the markets opened today, after a careful observation of stocks' movements and analysis, we find these below mentioned stocks worth watching during rest half of the day.

A)  ITC: ITC shares rose 1.7 per cent after the company declared resuming its cigarette production through revocation of its suspended factories from May 04. The stock is likely to remain in focus.

B)  Steel Authority of India: Sail surged 1.7 per cent after it announced reduction of its workforce to reduce manpower cost. The company has also re-introduced voluntary retirement scheme.

C) Thyrocare Technologies: The IPO of the company saw many buyers on the first day at bourses and was oversubscribed where prices were in the range of 420-446. The stock is to remain in the limelight in coming sessions.

D)  INOX Winds: After falling heavily on Friday the stock recovered nearly 8 per cent after company posted 77.5 per cent rise in its consolidated net profits for Q4.

E) Ultratech Cements: Ultratech Cements surged 2 per cent after receiving an approval from board of directors to increase Registered Foreign Portfolio Investor Limit up to 30 per cent which was at 24 per cent earlier.