Mid market commentary Aug 18

Indian markets bounced back post two days fall, where Nifty and Sensex almost hit 8690 and 28200 mark respectively. Midcap segment is trading in line with 0.5 per cent gains; while Smallcap index is outshining with 0.95 per cent gains. Market breadth remains positive with 1570 advances and 798 declines.

Asian markets remained mixed, where Nikkei 225 tumbled 1.5 per cent; while Hang Seng gained 1.2 per cent after positive opening. European markets have opened on a positive note, where all the major indices are trading up with marginal gains.

On the sectoral front barring FMCG that is down 0.17 per cent, where Jubilant Foodworks has tumbled 2.2 per cent, all the other sectors are trading in green, where Banks, Realty and Media have gained more than 1 per cent each. Bank Nifty has surged to 19310 and hit 18 months' high breaking prior high of 19158.

On the stock specific front, IndusInd Bank, Adani Ports and Power Grid are the top gainers with 3 per cent plus up move each; while Coal India has plunged the most with 2.2 per cent losses.

Nifty still maintains consolidation and hence we hold our view of 8685 on a closing basis and 8730 for near term as resistances. On the downside, we hold 8645 followed by 8600 as the supports for now.

Stocks to watch:

Bharti Airtel: The stock of Bharti Airtel has surged 2 per cent and more after Singapore's Telecom company, Singtel, increased its stake to 7.39 per cent in Bharti Telecom, which is a holding company of Bharti Airtel.

India Cements: India Cements has announced its Q1FY17 results wherein its June 2016 quarter net sales stand at Rs 1202.5 crores as against YOY numbers of Rs 1221 crores. But net profit has risen from Rs 37.80 crores to Rs 43.90 crores amid decreased direct expenses.

L&T Infotech: IT arm of L&T, L&T Infotech has announced a strategic partnership with Coupa to enable enterprises to rationalise spends, achieve measurable savings, control costs and improve cash management.

Nestle India: Nestle India has announced the launch of new variants of Maggi Noodles including cup noodles on Aug 17 after market hours. The stock opened with a gap up as a reaction to the news.

Hathway Cable & Datacom: The company board has approved to divest up to 90 lakh shares of the subsidiary through an OFS (offer for sale).