Mid-market commentary Aug 17

Indian markets have a clearing holiday and only trading is open. That’s why the markets have witnessed low volumes as is traditionally observed. Indian markets opened on a flat to negative note but recovered slightly to trade in green. On the whole benchmark indices are trading in consolidation, where Nifty is hovering around 8645; while Sensex around 28100 levels.

Broader markets have outperformed where Midcap is 0.5 per cent up; while Smallcap leads with 0.7 per cent gains where Tree House and Zee Learn have surged 14 per cent with the re-merger announcement between the two. Market breadth stands positive with 1357 advances and 922 declines.  

Among sectors, Metal shines with 1.6 per cent gains driven by SAIL that surged 4 per cent. Realty follows with 1.2 per cent gains. IT and Energy are trading in red with 0.7 and 0.37 per cent losses,respectively. Infra is flat to negative with 0.13 per cent losses.

On Nifty 50 front Coal India and Hero MotoCorp have surged the most with 3 per cent plus gains. Tata Steel, Axis Bank and Bajaj Auto follow with 1.7 per cent plus gains each. On the contrary TCS has tumbled the most with 1.5 per cent losses. Ambuja, Ultratech, Infy, Asian Paints and Kotak Bank follow with 1 per cent and more losses each.
Nifty is trading in consolidation. We hold immediate support at 8600 and resistance at 8685. Otherwise markets will remain in the range of 8730 and 8540.

Stocks to watch:

JSW Steel: The company has announced completion of entire shareholding of Praxair India Private Limited that stands at 74% in JSW Praxair Oxygen Private Limited for a sum of Rs 240 crores. The news will reflect in the stock price during the session.

Dish TV: According to media reports, the stock of Dish TV has surged 3 per cent where Dish TV is in the final stages of acquiring Videocon D2H, which already has 45 per cent market share.

Suzlon Energy: Suzlon Energy has received a 132 Mw repeat turnkey order from ReNew Power to be commissioned in Andhra Pradesh by March 2017. The project is aimed at providing power to 70,000 households.

Tata Power: Tata Power International, subsidiary of Tata Power has sold its 50 per cent stake in OTP Geothermal to KS Orka Renewables for 30 million USD.

Tata Motors: Credit rating agency Standard & Poor's has raised Tata Motors' corporate credit rating with better grades owing to a better performance from its British-arm Jaguar Land Rover (JLR).