Mid-market commentary Aug 10

Indian markets witnessed their second straight fall amid selling pressure with much higher declines than advances. Market breadth remains highly negative with 670 advances and 1707 declines where broader markets too declined by 1 per cent. Stock specific extreme moves derived by earnings data or other announcements dragged the markets down.

All sectors landed in red where Realty led with 1.9 per cent losses. Among Nifty stocks only Adani Ports gave a dynamic up move with 8 per cent gains amid positive results. TCS followed with 1 per cent plus gains.  Grasim fell the most with 5 per cent losses. Nearly 26 other stocks tumbled making more than 1 per cent losses.

Nifty has hit below 8600 at 8585. We hold 8520-8475 as the next supports provided Nifty hits below 8590 on a closing basis. On the contrary 8620-8690 will act as the resistances.

Stocks to watch:

Tata Chemicals: Tata Chemicals has announced a sale of its urea business to Yara Fertilisers India Private Limited for a sum of Rs 2670 crores. The stock has surged more than 6 per cent with the announcement.

Aditya Birla Nuvo: The shares of Aditya Birla Nuvo have tumbled 3.7 per cent and Grasim has tumbled 5 per cent after media flashed news that Aditya Birla group is considering merger of Grasim and parts of Nuvo by hiving off the financial services business of Nuvo into a separate entity.

HFCL: The shares of Himachal Futuristic Communication have tumbled more than 3 per cent after the company acquired shares of surveillance firm Polixel Security with additional investment of Rs 11 crore where its stake has reached 94 per cent.

Motherson Sumi Systems: The shares of Motherson fell 4.5 per cent after the company missed its Q1 earnings' estimates, despite double digit growth in revenues and net profits.

Godrej Industries: According to media reports, realty developer Godrej Properties is mulling to launch 12 more projects including phases of existing projects by the end of this fiscal.