Mid-market commentary July 7

Stock markets witnessed a lacklustre movement where the benchmark indices traded on a flat note since the morning session. Smallcap maintains outperformance with marginal gains of 0.35 per cent while Midcap trails in line with the benchmarks. Market bias remained positive with 1483 advances and 967 declines.

Asian markets edged higher with upbeat US economic data wherein US stocks recovered from their early losses. Britain’s Pound fell below 1.3 USD for the first time in three decades. Global markets to trade cautiously ahead of the US FED minutes and ECB policy. European markets opened in green.

On the sectoral front IT and Media tumbled the most with nearly 1.5 per cent losses. IT was dragged down by HCL TECH and Tech Mahindra each falling more than 2 per cent. On the Media front, ZEEL tumbled the most with 2.6 per cent losses. Auto gave up early gains and fell 0.4 per cent. On the contrary Realty remained up with Oberoi surging more than 7 per cent.

Nifty top gainers: Hindalco surged the most with 3.5 per cent gains. HUL and HDFC followed with 2 per cent plus gains. Axis Bank and Ambuja Cements too surged nearly 1.5 per cent.

Nifty top losers: Tata Steel tumbled with 3 per cent losses. ZEEL and HCL TECH followed with 2 per cent and more losses. Tech Mahindra and Infratel were other top losers that dragged markets downwards.

Nifty is facing correction after hitting near 8400 mark. We hold 8300-8285 as our immediate supports. On the other hand 8345-8400 will act as the resistances.

Stocks to watch:

Ultratech Cements: The company bagged two Coal Linkages via auction in Maharashtra. The stock has risen 1.2 per cent.

NBCC: The stock of NBCC jumped 14 per cent after receiving approval from Cabinet to start its redevelopment projects worth Rs 32835 crores.

BGR Energy: Company has received Letter of Intent worth Rs 2300 crores from Andhra Pradesh Power Generation Corporation. The stock has surged 13 per cent.

Sutlej Textiles: Rating agency CARE upgraded Sutlej Textiles to AA for longterm bank facilities from AA-. It rated short term facilities to A1+.

JK Paper: The company has announced non-binding offer for two units of Avantha Group firm, BILT Graphic Paper Products Ltd.