Mid-market commentary June 22

Indian stock markets remain lull with no major trigger to grab the momentum. Both Nifty and SENSEX opened flat, and are currently hovering at 8210 and 26800 levels. Broader markets too remained flat with all in all 1026 advances and 1114 declines so far.

Asian markets remained subdued ahead of the Brexit poll which is to be released on June 23. Few indices continued a cautious upbeat with a likely decision of Britain to stay back. Nikkei 225 was down with 0.9 per cent while Hang Seng surged marginally with 0.35 per cent gains. Shanghai Composite Index rose 0.4 per cent.

US markets closed slightly higher amid fall in oil prices. Kicking off the two days session of FED, Janet Yellen noted that she would take cautious steps in monetary policy keeping in mind the labour market and Brexit.

On sectoral front, Metal and Auto sectors tumbled 0.8 and 0.7 per cent, respectively. Auto was majorly dragged down by TATAMTRDVR and Tata Motors, falling 3 and 2.5 per cent respectively. On the other hand Bank Nifty and Pvt Banks surged nearly 0.5 per cent. Pharma too rose 0.45 per cent pulled by Dr. Reddy's that surged 2.3 per cent.

The textile policy which was to be announced today has been postponed to the next week. The stocks had seen a big spurt in the previous sessions. On Wednesday textile stocks witnessed profit booking.

Top Nifty gainers: Apart from Dr. Reddy's, Ambuja Cements surged 1 per cent. Adani Ports, Auro Pharma and Tata Power followed the toppers list with 0.8 per cent each.

Top Nifty losers: After Tata’s auto majors, Infratel fell more than 2 per cent. Metal majors Hindalco and Tata Steel followed suit.

Nifty maintains consolidation. Hence we hold our view of 8260-8300 as the resistances and 8200 followed by 8150-8120 as the supports for the Nifty.

Stocks to watch:

Tech Mahindra: Tech Mahindra has approved the acquisition of 100 per cent stake in the UK based digital transformation and innovation company Bio Agency. The acquisition will help open up more clients for Bio in Europe and US.

Snowman Logistics: The company is already in news after government has recommended clearance of GST bill in the monsoon parliament. The company recently noted that it is setting up a new facility at Gateway Distriparks Logistics Park in Krishnapatnam with a capacity of 3,500 pallets of temperature controlled and dry warehousing.

Majesco: The IT consulting and software company Majesco has entered into a partnership with eGain, a provider of cloud customer engagement solutions. The stock has surged by 2 per cent.

Bank of Baroda: The bank is said to have declared a list of its defaulters. It posts 186 borrowers owing a total of 1663 crore. The bank seems to have added just 9 wilful defaulters in last two quarters. The stock may see some volatility during the session.

Force Motors: The company has set up a new facility to provide engines and axles to Mercedes Benz India. The company is investing 100 crore in the plant, and this would help it manage production capacity demand.