Mid market commentary June 21

Power and Capital Goods stocks refrained markets from continuing with a positive momentum. Indian markets saw a range bound volatility after a strong recovery in the previous session amid profit booking.

Benchmark indices traded on a flat to negative note at 12.00 hours despite of stronger US and Asian Markets. Broader markets outshined again after a day’s breather wherein both Midcap and Smallcap traded marginally up with nearly 0.4 per cent gains each. Market breadth remained positive with 1255 advances and 948 declines.

On the global front, the investors remained cautious ahead of the two upcoming global events viz; Brexit poll on June 23, and Janet Yellen’s two-day testimony beginning Tuesday, June 21, indicating the probable period of next rate hike. Asian markets rallied with the hope of voters voting against Brexit in Thursday’s session. European markets opened lower.

On the sectoral front, IT, Infra and Energy sectors remained marginally down with nearly 0.35 per cent losses. NTPC, Tata Power, BHEL and IT stock Tech Mahindra dragged the markets downwards after falling more than 1 per cent each. On the contrary Auto sector remained positive with 0.45 per cent gains after Motherson Sumi soared 3 per cent plus. Auto sector surges on hopes of normal monsoon to drive demand for two wheelers and tractors. Logistic stocks also surged in the wake of rising volumes.

Top Nifty gainers: Hindalco and M&M remain the top gainers with 1 per cent plus gains. Dr Reddy's, TATAMTRDVR and Infratel follow with 0.7 per cent plus gains.

Top Nifty losers: Power companies NTPC, Tata Power and BHEL are the top losers with more than 1.5 percent losses each. Tech Mahindra and IndusInd Bank follow with 1.4 and 1.2 per cent losses.

Nifty has retreated after a sharp recovery in the previous session. However, is maintaining consolidation for now. In case of recovery, 8260 followed by 8300 will act as the resistances. If broken, can hit an upside target of 8360 mark. On the downside, 8200 followed by 8150-8120 will be the supports for now.

Stocks to watch:

Bank of India: Major PSU lender has sold 18 per cent stake in its Life Insurance venture Star Union Dai-Ichi Life Insurance to Japan's largest life insurer Dai-Ichi. The shareholding of Bank of India will decrease to 30 per cent now.

Tata Power: Tata Power company has tumbled more than 2 per cent. Tata Power Renewable Energy, the subsidiary of Tata Power has raised Rs 525 crore through issuance of non-convertible debentures to erase high cost debt.

Asian Paints: Asian Paints has recently informed BSE about its proposal of setting up a manufacturing plant in Vishakhapatnam for 12 years by investing Rs 1785 crores.

Crisil: SEBI is probing against the rating agencies like Crisil and CARE for giving false rating on Amtek Auto. The rating agencies may see some correction after the news.

Man Infraconstruction: The smallcap construction and engineering company Man Infraconstruction surged after its subsidiary received order worth Rs 751.29 crore from Bharat Mumbai Container Terminals for development of fourth container terminal at Jawaharlal Nehru Port (JNPT), Mumbai.