Mid-market commentary Sept 01

Stock markets have tempered down after hitting new highs in the previous session. Benchmark indices have remained flat amid range bound trade. Only the telecom majors Bharti Airtel and Idea Cellular have cracked down by 5 per cent with the announcement of Jio’s tariff plans in Reliance’s AGM meet. On the sectoral front, Auto remains up with 0.7 per cent gains while Realty has tumbled 1 per cent with DLF falling 2 per cent. Cement stocks have fallen after CCI imposed Rs 6700 crore penalty on 11 companies.

Asian markets remain mixed with Nikkei and Hang Seng rising 0.23 and 0.7 per cent respectively; while Shanghai Composite has fallen 0.7 per cent after the release of China data. European markets opened on a positive note but will be driven by the impact of China data, decline in Oil and US jobs data concerns.

Nifty is moving sideways for now and if it gives a breakout above 8820 we hold 8845-8850 as the next immediate resistances. On the contrary we hold 8770 followed by 8730 as the supports.

Stocks to watch:

Tata Power: Javelin Joint Venture has signed a letter of intent with Tata Power to explore co-development and production of Javelin anti-armour missile system.

KEC International: The company has bagged orders worth Rs 1224 crores, together in transmission, railways and cables. The stock has zoomed with the announcement.

Uniply Industries: According to media reports, Uniply Industries has acquired Vector Projects, an architecture, design and interior fit out company to provide end-to-end building solutions. The stock has surged 2.3 per cent with the news.

Hathway Cable & Datacom: The stocks of broadcasting and cable TV company, Hathway have tumbled more than 5 per cent with the release of its Q1 numbers where its net loss has increased from Rs 37.38 crores to Rs 53.20 crores YoY.

Maruti Suzuki: The company has posted its sales data for August, wherein the sales have risen to 132211 units as against 117864 units YoY. The stock will remain in the lime light for the rest of the session.