Mid-Day market watch on May 10, 2016

After making up for entire week’s losses in the previous session, Indian stock markets seemed to have a lull mood in today’s session. Both Nifty and SENSEX are making intraday lower tops and lower bottoms but the fall is too gradual. Currently Nifty is hovering around 7860 mark i.e. near its previous closing while SENSEX is trading flat to positive at 25695 levels.

We have the Indian Inflation data to be released later this week, wherein the Annual Inflation is said to rise to 5.0 as against 4.83 in the month of April in the wake of higher food prices and recovered fuel prices. Investors are eyeing RBI’s move in the next policy after the release of data.

Market breadth remains marginally positive with 1105 advances; and 1093 declines. 128 BSE stock's prices remain unchanged.

On the sectoral front Auto falls the most with 1.3 per cent downside, with Apollo Tyres and Tata Motors at the forefront. On the contrary our defensive sector Pharma has surged by 0.8 per cent. All others remain marginally up or down.

Top 5 Nifty Gainers: Dr Reddy's today has recovered after 8 consecutive downbeats and grabs top position in Nifty50 with 1.9 per cent gains. HUL has surged 1.86 per cent  in one day after the results. BHEL, L&T and Tech Mahindra follow with 1 to 1.2 per cent gains.

Top 5 Nifty Losers: On the downside, Tata Motors and its DVR tumble 3.5 and 2.9 per cent each, not allowing the markets to recover. Hindalco and ONGC follow with 1.9 per cent losses. Tata Power is the fifth worst performer with 1.6 per cent loss.

Asian markets have fallen to a two- month low attributed to weak oil prices, while the Dollar has strengthened against most other currencies. Moreover strong China data has dented the possibility of further monetary easing.  

Nifty has hit exactly at yesterday’s high of 7874 and later tumbled. We hold 7875 followed by 7890 as the immediate resistance levels. 7800 followed by 7775 will act as the supports for now.

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) Tata Steel: Tata Steel remained in the limelight in the otherwise lull market after its European arm announced that it received seven expressions of interest for its U.K business sale process.

B) Tata Motors: Tata Motors dragged the markets down after its retail sales moderated.

C) Ujjivan Financials: After Equitas now Ujjivan Financials, the microfinance firm got listed at exchanges today at Rs 231.90 i.e. 10 per cent over its issue price of 210.

D) ZEEL: ZEEL has surged ahead of positive expectations, that investors had from the Q4 results. Net profits are likely to grow by 18 per cent and YoY Revenues to grow 23 per cent.

E) Datamatics Global: The stock has surged over 6 per cent after the company announced winning an automatic fare collection contract for the North-South corridor of the Lucknow Metro Rail project.