Mid market commentary June 09

Markets broke down the consolidation where both Nifty and SENSEX tumbled more than half a per cent since morning session. Nifty hit below 8250 mark at 8230 after making an opening high at 8273 mark.  SENSEX too hit below 27000 at 26820 levels.

Broader markets maintained outperformance even today where BSE Midcap remained flat; while Smallcap surged 0.3 per cent. Market breadth remains positive with 1232 advances and 1085 declines.

On the sectoral front, defensives like IT and FMCG dragged the markets down by falling more than 1.5 per cent each. On the contrary, Metal and PSU banks surged against the market by 1.6 and 1 per cent respectively. Metal stocks surged after global rally in base metal prices and amid weaker dollar.

Top Nifty gainers: Hindalco surged 2.6 per cent and hit the toppers list. Reliance followed with 2 per cent. Bank of Baroda, NTPC and BPCL are the next top gainers.

Top Nifty losers: Infy, ITC, HUL and Dr. Reddy's fell more than 2 per cent each. TCS followed with 1.9 per cent losses.

Asian markets turned lower, led by fall in Japanese stocks on weaker Dollar that pulled gold and crude upwards. Europe too is likely to open lower.

For Nifty we hold 8185 as the support if Nifty continues to slide in today’s trade. 8155 will act as the next downside target. On the upside, we hold 8250 followed by 8273 as immediate resistances for now.

Stocks to watch:

Eros International Media: Eros surged 8 per cent on expansion of its digital distribution and success of Housefull 3 promoted by the company. The march results were positive and IDBI capital maintained a buy rating.

Granules India: Granules surged after its subsidiary, Granules Pharmaceuticals Inc., acquired exclusive rights from US Pharma company Windlas for marketing and selling of its four products in US.

MMTC: The stock of MMTC along with other PSUs rallied after the hype that they could soon announce share buyback. MMTC rose nearly more than15 per cent.

Lovable Lingerie: Lovable Lingerie surged after Reliance Mutual Fund bought 4.73 per cent stake in the company. The stock has shown great upside movement since its quarterly results.

Motherson Sumi: The company has raised 300 million USD through issue of notes to repay debt. The stock will remain in the limelight in coming sessions.