Mid market commentary June 28

It is yet again that the broader markets have outpaced the benchmark indices. Nifty and Sensex opened on a flat note, surged marginally in the morning trade and consolidated thereafter. On the contrary the Smallcap and Midcap indices fared well making 0.75 and 0.4 per cent gains. Thereby the market bias remains positive with 1480 advances and 761 declines. Nifty holds 8100 mark. Markets may see further upside after a positive opening from Europe.

FIIs and DIIs were the net sellers in the previous session with the total of 293.18 crores. European Union fears another similar referendum from Scotland and few other European countries after Brexit.  The Brexit is likely to hurt exports and FII, FDI inflows in the near term and hence concentrating purely on the domestic companies for now will be beneficial.

On the sectoral front, the Telecom sector zoomed today after Tata Communications sold its South African telecom unit Neotel Pty to Liquid Telecom group for nearly Rs 2900 crores. Taking the positive cues, IDEA, Bharti Airtel and Infratel remained amongst the top movers in the Nifty.

Otherwise the FMCG sector remains positive with 1 per cent plus gains with the news of cabinet looking forward to the clearance of 7^th pay commission. On the contrary IT, Media are marginally down with 0.3-0.5 per cent losses. Auto recovered after the losses from Tata Motors and TATAMTDVR were offset by gains in most other non-frontliners.

Top Nifty gainers: IDEA surged the most with 3.5 per cent gains. Lupin, Infratel, Eicher Motors and Bosch follow with 2 per cent and more gains.

Top Nifty losers: Leaving apart the Tatas, NTPC, ZEEL and GAIL remain as the top losers with nearly 1 per cent fall.

Asian markets recover from choppy trade amid the Brexit effects after several Asian governments came forward to build stimulus packages like providing liquidity to the small firms. Markets still remain choppy. Nikkei remains flat. Hang Seng is marginally down 0.57 per cent. Shanghai Composite remains up with half per cent upside. Europe opens strongly upwards with more than 1 per cent upside in the initial ticks itself.

Nifty is moving up but with baby steps and hence we maintain our view of 8150-8190 as the immediate resistance levels. Above that 8285-8360 are the next targets. For now Nifty is likely to remain in consolidation. On the downside, 8050-7990 to act as the supports.

Stocks to watch:

GE Shipping: The company has signed an MoA to purchase 5 second hand Capesize Dry Bulk Carriers of 179250 dwt. The ship, built at Hyundai Heavy industries would join GE Shipping in second quarter of FY17.

RPG Lifesciences: The company officially announced its venture into cosmetology through launch of two products Crescina and Fillerina in collaboration with Italian cosmetic leader Labo Cosprophar.

MBL Infrastructure: The company bagged another road project from National Highway Authority of India (NHAI) of Rs 779 crores. The stock will see some positive outcome in coming sessions.

Siemens: The company wins order of Rs 570 crores from Power Grid to supply STATCOM (Static Synchronous Compensator) solutions.

Tata Global Beverages: The Starbucks Corp, the American coffee company is expanding its partnership with Tata group to penetrate by launching its coffee in US and Himalayan mineral water in Singapore.