Mid-market commentary Aug 29

Indian benchmark indices opened higher, but tumbled from the very moment to continue with the downbeat of the previous two sessions. However, we saw some recovery in the markets, driven by the Auto sector that zoomed 1.2 per cent, with majorly tyre companies surging due to fall in rubber prices. Otherwise Metal, Media, Infra and Energy remained marginally up. IT sector dragged the markets down by falling below 1 per cent for third consecutive session with HCLTech and Wipro falling the most. Tata Motors, TATAMTRDVR and Hero MotoCorp continued zooming post results, giving 2-4 per cent upside. Broader markets are flat to positive.

European markets opened on a negative note with half a per cent downside. On the Asian front, Nikkei soared 2.3 per cent after Yen slipped against Dollar owing to Janet Yellen’s statement. Otherwise Shanghai Composite remained flat and Hang Seng remained marginally down.

Nifty seems directionless for now. Nifty closed above 8570 which was our major support. Going forward 8540 followed by 8500-8475 will act as the next support levels. On the upside, 8600 is the major resistance followed by 8620-8690.

Stocks to watch:

Eros International Media: The company is likely to release a Telugu action entertainer, Janatha Garage, starring megastars, Junior NTR and Mohanlal on Sept 01. The stock has tumbled 1.5 per cent.

Trident: According to media reports, on Aug 29, Trident company has received nod for Rs 440 crore paper mill expansion project. Trident’s reaction is awaited. Trident  has soared 4 per cent, which is its third big uptick.

Dr Reddy’s Laboratories: The drug maker has launched Nitroglycerin sublingual tablets USP in the U.S. Market.

Great Eastern Shipping: Company has taken delivery of a new resale building, Kamsarmax Dry Bulk Carrier 'Jag Akshay'. The contract was signed in April 2016.

DLF: The scrip has fallen by 1 per cent and more ahead of Q1 results, which are to be released on Aug 29 later in the day.