Mid market commentary June 17

Post a sharp fall stock markets had seen some recovery at the end of previous session. The benchmark indices continued the recovery and opened on a positive note in Friday’s session to trade marginally upwards. Nifty hit above 8150 mark while SENSEX gained nearly 120 points at 26650.

China and Hong Kong markets rebounded followed by gains in Asian markets. Investors calmed down after the death of a British Lawmaker was presumably turning the sentiments again against the Brexit poll. Hang Seng was up 0.8 per cent. However, investors maintained reliance on safe havens like gold and bonds ahead of Brexit.

On the domestic front Smallcap index slightly outperformed with more than half per cent gains; while Midcap traded in line with the benchmark indices. Market bias remains positive with 1361 advances and 940 declines.

On the sectoral front Realty sector surged the most with 2.3 per cent gains pulled up by Sobha Developers and HDIL that surged nearly 5 per cent each. Defensive sector and Pharma tumbled against the market with 0.7 per cent losses. Other losers are Energy and Infra with marginal losses of 0.4 and 0.3 per cent.

Sugar stocks witnessed profit booking after government imposed export duty of 20 per cent on sugar exports to curb the rising prices and boost domestic demand.

Top Nifty gainers: TATAMTRDVR, Coal India are the top gainers with 2.3 per cent gains each. Tata Motors, HDFC and Axis Bank follow with 1.5 per cent and more gains.

Top Nifty losers: Tata Power tumbled the most with 3.9 per cent losses amid negative rating by Moody’s. Infratel is the second top loser with 2.7 per cent losses. Pharma majors Sun Pharma, Auro Pharma and Tata Steel follow with more than 1 per cent losses.

Nifty is range bound and hence 8215 followed by 8295 will act as the resistances; while on the downside 8150 will act as the immediate support followed by 8075.

Stocks to watch:

Max Financials: HDFC’s HDFC Life to merge with Max Life for creating the biggest private life insurer. Max Financials gained 18 per cent post the news.

V Guard Industries: The shares of company increased nearly 11 per cent after it announced a stock split of equity shares of face value of Rs 10 each into ten equity shares of Re 1 each.

GAIL: Russia's Gazprom CEO Alexei Miller and India's Energy Ministry discussed liquefied natural gas supplies to India's GAIL company. GAIL will remain in the limelight for the remaining session.

IOC: IOC is likely to buy 37.5 per cent stake in proposed joint venture to manage fuelling facilities at all airports controlled by AAI.

GMR Infra: GMR Infra is planning to sell its stake in Hyderabad airport, valued at Rs 5000 crore, majorly to the global investors.