Mid Market Commentary May 23

Indian benchmark indices opened with a gap-up continuing the last moment positive upswing from its front-liner ITC in Friday’s session. Nifty and Sensex opened 64 and 146 points up but plunged from the very moment to currently trade flat.

Asian markets remained a mixed bag where Japanese benchmark index saw a downturn while other markets remained positive in the wake of positive closure from U.S. markets on Friday.

Market breadth remains marginally positive with 1160 advances and 1144 declines. Midcap and smallcap indices too remain positive with marginal gains of 0.2 per cent.

On sectoral front ITC surges the most pulled up by ITC and Dabur post results. Media surges 0.5 per cent where Dish TV rises 2 per cent ahead of results. On the contrary PSU Banks tumbled the most with 1 per cent losses. All others remain flat.

Nifty top gainers: Apart from ITC, Powergrid and Infratel grab the top positions in Nifty 50 with 2 per cent plus gains. Tata Power and Adani Ports follow with 1.8 per cent gains.

Nifty top losers: Tata Steel has dragged the market from day’s high and has tumbled 2 per cent. ONGC, Bank of Baroda, sun Pharma and Bajaj Auto follow with more than a per cent loss.

Nifty hits below its previous closing price to trade in red. We maintain our view of 7700-7675 as our major supports while on the upside we hold 7775-7810 to act as immediate resistances followed by 7850 mark.

Stocks to watch for:

Suven Life sciences: The stock has surged 3 per cent on securing four product patents in Australia, Eurasia, Israel and USA to their new chemical entities.

Ruchi Soya: Ruchi Soya gained nearly 7 per cent after it sold its entire stake in its joint venture company Ruchi Kagome Foods India for Rs 63 core.

MEP Infrastructure: MEP Infra surged 6 per cent after it received a contract from National Highways Authority of India. The company has bagged the contract in joint venture with Sanjose India Infra.

Intellect Design: According to media reports Halk bank, Turkey plans to ramp up collection process with the company.

Company results: Aban, Dish TV, Tata Power are to remain in the limelight on Monday ahead of their quarterly results.