Mid-market commentary Aug 9

Markets took a U-turn after hitting new highs amid RBI policy review. Nifty and Sensex tumbled 0.7 per cent after Raghuram Rajan kept the rates unchanged in his last announcement. Barring PSU banks that surged marginally with 0.45 per cent gains all other sectors traded in red.

The Nifty 50 stock, Tata Power has surged exceptionally against the markets at 3.7 per cent gains. Infratel followed amid short covering with 1.7 per cent gains. On the other hand, Idea Cellular continued with its downswing and tumbled 5 per cent. Ambuja Cements, Eicher Motors and Hindalco followed with 2 per cent and more losses.

Going forward we hold 8620 as the immediate support, which is the 50 per cent retracement level of the prior up move. Below this 8590-8520 will act as the next supports. In case of any reversal we hold 8690-8725 as the resistances followed by 8765.

Stocks to watch:

Pincon Spirit: The company’s regular segment product, Prestige Whiskey "Bankers Choice" has been approved and registered with Commissioner of Excise, Government of West Bengal. The stock surged 1 per cent.

Pfizer: The leader in biosimilars has reconsidered and returned rights to Pfenex for Lucentis Biosimilar amid competition.

Palred Technologies: The company through its subsidiary Palred Online Technologies Private Limited has launched a managed marketplace through LatestOne.com.

Tata Motors: Tata Motors has posted a 20 percent rise in global sales at 88,159 units in July including Jaguar Land Rover (JLR) vehicles.

REC: The board of Rural Electrification Corp., is likely to consider issuing bonus shares to its shareholders in the upcoming meeting.