Mid Market Commentary May 19

Indian stock markets started off on a flat note but tumbled marginally to trade in the negative territory. Markets retreated again after previous day’s intraday revival in the wake of weak global cues. Nifty is hovering around 7850; while SENSEX has shed more than 75 points at 25625 levels.

Asian markets continued to slide after the minutes of FOMC meet proposed a possible rate hike in June by Federal Reserve.

On the domestic front, in the assembly elections 2016, Mamata Banerjee led TMC surpassed the Left Congress alliance in West Bengal. BJP was leading in Assam while AIADMK and LDF surged ahead of the other parties in TN and Kerala. The elections may direct the markets for today’s session.

Market breadth remains positive despite of a fall in benchmark indices as Midcap and Smallcap segments remain flat to positive. We have 1204 advances; and 964 declines in BSE.

On the sectoral front PSU Banks are seeing a profit booking trend and tumbled 1.3 per cent. Apart from PSU Banks, Media sector has seen a downturn with Sun TV falling the most by 11 per cent. On the contrary, Metal is shining with Ratnamani at the forefront of the move with 7 per cent upside.

Nifty Top Gainers: Lupin grabs the top gainers' list with 2.3 per cent ahead of quarterly results. Tata Steel and BHEL follow with 1.7 per cent gains. Hindalco and Tata Motors are the successors.

Nifty Top Losers: HDFC, Bank of Baroda and SBIN continue to fall and to be the top losers in today’s session. ITC and ONGC follow.

Nifty is still trading in consolidation. Nifty may touch 7770 if it breaks below 7830 on the downside. On the upside, 7920-7940 will act as the resistances provided Nifty hits 7855 on the upside.

Stocks to watch:

Snowman Logistics: Most of the logistics stocks viz; Allcargo Logistics, Gati, Snowman Logistics and VRL Logistics rallied after the BJP’s good performance in the assembly elections revived hopes for the passing of GST bill in Rajya Sabha.

SUN TV: Sun TV has fallen nearly 11 per cent after hitting its 52 wk high in previous session. The fall was after the vote count in Tamil Nadu portrayed that AIADMK surpassed DMK, the opposition party in the assembly elections. Sun TV indirectly belongs to DMK.

Ashoka Buildcon: Ashoka Buildcon has risen 4 per cent after bagging a project in West Bengal. It has bagged a road project from National Highway Authority of India.

Glenmark Pharmaceuticals: The company has received USFDA’s final approval for its Rufinamide tablets. The stock has surged 2 per cent and is likely to remain in the limelight.

Allcargo Logistics: The stock has surged nearly 7 per cent after the company announced a possibility of acquiring a controlling 62 per cent stake in CCI Logistics and forming a new entity.