Mid Market May 13

Indian markets continued their choppy movement as the benchmark indices again opened on a negative note after a positive closure in the previous session. At the beginning of the afternoon session, markets broke down from the consolidation, and tumbled by approximately 1.3 per cent, dragged down by Bank Nifty in the aftermath of the results. India Volatility Index stands at 17.16 with a rise of 5 per cent.

Investors remained cautious ahead of announcement of some more stringent rules for the participatory notes (P Notes) with a view to check black money flow into the stock markets. SEBI is likely to put KYC (know your client) mandate on P Notes and to take decisions on the same in the meeting to be held on May 20.

Market breadth remained negative with 907 advances; and 1250 declines in BSE. 159 stocks remained unchanged. Midcap segment however, remains positive with Nifty Midcap 50 rising by 0.2 per cent.

On the sectoral front, Media continued to trade with optimism and has surged 1 per cent pulled by Network 18 that has surged by 9 per cent. Banks, Financial services and Metal sectors are dragging the markets down, by falling more than a per cent.

Top 5 Nifty Gainers: Adani Ports is the top gainer with 2 per cent upside. IDEA and HCL Technologies follow with 1.5 and 1 per cent gains, respectively. Asian Paints and Tata Motors have gained 0.9 per cent each.

Top 5 Nifty Losers: Eicher Motors and HUL are leading the Nifty downfall and have tumbled more than 3 per cent each. Hindalco, ICICI Bank and Gail followed with 2 per cent and more losses each.

Nifty has hit below its 200 day EMA at 7807. Now we hold 7780 followed by 7720 levels as the immediate supports for the Nifty.  In case of recovery we may see 7880 followed by 7920 as the resistance levels for now, if Nifty sustains above 7840.

Stocks to watch out for

Eicher Motors: Eicher Motors has tumbled after its promoters announced 4 per cent stake sale in open market transactions. The proceeds of sale would be used for personal investments.

Aditya Birla Fashion and Retail Ltd.: Company has surged by 3 per cent after it signed an exclusive deal to bring brand Simon Carter into India with a view to enhance its international portfolio.

Cairn India: The company has extended its loan repayment period by 2 years. The loan was earlier given for 2 years to THL Zinc; and Vedanta's foreign subsidiary. The period has been extended under the condition of higher interest payment.

Crompton Greaves: The demerged arm of Crompton, Crompton Greaves Consumer Electricals got listed today but has fallen by 20 per cent on the first day itself. Both the stocks are to remain in focus.

Banks: Bank of Baroda, Central Bank, Allahabad Bank, Dena Bank, Union Bank and UCO Bank are about to declare their results today.

These stocks and the banking sector are likely to provide direction to the markets.