Mid market commentary June 13

Indian stock markets started off with a gap-down where Nifty and SENSEX opened down by 68 points and 167 points, respectively. Since the morning tick, markets have been witnessing lower tops and lower bottoms with further downside of nearly 1.2 per cent.

Asian markets closed sharply down on Monday ahead of Central Bank's meeting in US and Japan to discuss over the referendum whether UK would exit European Union. Nikkei 225 tumbled 3.5 per cent amid sell-off from exporters, as Yen strengthened adding pressure to the stocks. Hang Seng dropped 2.7 per cent.

Market breadth remained negative with 743 advances and 1583 declines majorly in the ratio 1:2. Among the broader markets Midcap and Smallcap indices too tumbled 0.9 per cent each.

All the sectoral indices are trading in red where Realty and PSU Banks are leading the downfall with more than 2 per cent losses. The marginal losers are the defensive sectors viz; Pharma and FMCG that fell 0.3 per cent and 0.4 per cent respectively.

Top Nifty gainers: None of the Nifty stocks is trading with more than 1 per cent upside. BPCL trades against the market and is 0.9 per cent up. Coal India and Infratel too remain positive with 0.7 per cent gains. Lupin and Bosch follow with 0.5 per cent plus gains.

Top Nifty losers: The Tata group companies TATAMTRDVR, Tata Motors and Tata Steel are dragging the markets down with 4.3 per cent, 3.9 per cent and 3.75 per cent losses, respectively. ICICI Bank and IDEA follow with 3 per cent and more losses.

Nifty is considerably down and now we hold 8050 followed by 7990 as the next supports. We can see a pull back after the markets bounce back from the supports. On the upside, 8100 followed by 8165, which is the gap filling level will act as the resistances for now.

Stocks to watch:

Siemens: Siemens grabs order worth Rs 78 crore from power Grid Corporation of India to design, supply and install commission 7*500 MVA, 765/400/33kv, phase of autotransformers at Bhuj.

Coal India: Coal India is one of the very few Nifty50 stocks trading with gains amid buyback news from its subsidiaries. Mahanadi Coalfields (MCL) and Northern Coalfields would buyback total shares worth of nearly Rs 1,978 crore.

Dr Reddy's: The drug maker Dr Reddy's has entered into a pact with Teva Pharmaceuticals an affiliate of Allergan PLC to buy 8 drugs in US worth 350 million USD.

Fortis Healthcare: Fortis Healthcare stock tumbled on announcement of its subsidiary receiving an order from the directorate general of Healthcare Services to pay Rs 503.36 crore for non-compliance of conditions of land allotment lease.

A2Z Infra Engineering: A2Z surged nearly 12 per cent after the company won 12.56 million USD contract from Nepal Government for expansion of electricity distribution network in western region of Nepal.