Broader markets underperform benchmark indices

Benchmark indices are trading in a tight range post the announcement of disappointing IIP numbers for the month of December which came in at negative 0.6%. This was due to weak demand from the European markets, which is India's largest trade partner.

By 1200 hrs, the Sensex was up 17 points at 19,477 and the Nifty is 2 points down at 5,895. The broader markets are, however, under performing the benchmark indices in noon deals today. The BSE Mid-cap index has declined 0.86% at 6,686 and the small-cap index is down 0.93% at 6,710.

According to Ranak Merchant, technical analyst - strategies, Sushil Financial Services, “Mid Caps have always been the brunt bearers of any selling pressure seen in the markets”.

Shares of Unitech and DB Realty have tanked between 19-20% on back of heavy volumes. Unitech has plunged 19% to Rs 28 on the Bombay Stock Exchange on reports that the Central Bureau of Investigation (CBI) suspects its own prosecutor of aiding Unitech, managing director Sanjay Chandra, one of the accused in the 2G case.

Adds Anil Manghnani, Chairman, Modern Shares & Stock Brokers, “Unitech has obviously cracked badly today based on the recent news. 34 was a crucial support and now since it is trading below the same will become a resistance. On the downside, Unitech has major support between 27-26, so it is imperative it holds the same.”

Indiabulls Real Estate, Anant Raj Inds,  Housing Development & Infrastructure have declined by between 3-5%.

Dishman Pharmaceuticals and Chemicals is trading lower by 8.4% at Rs 85.90 after reporting 62% year-on-year (yoy) drop in its standalone net profit at Rs 5.75 crore for the third quarter ended December 2012 due to higher finance cost.

Elantas Beck India has dipped over 12% to Rs 652 after the promoter fixed floor price for the sale shares at Rs 650 per share, a much below than Monday's closing price of Rs 741.85.

Other notable midcap losers include Indian Infotech and Software, GVK Power & Infrastructure, Punj Lloyd, National Fertilizer, Prism Cement, Ybrant Digital and Indiabulls Financial Services, all slumping between 3-6%.

The overall breadth of the BSE midcap remains downbeat as 178 stocks are declining while 68 are advancing.

STOCKS TO BUY & SELL

Says Ranak Merchant, technical analyst - strategies, Sushil Financial Services, "Dena Bank from the PSU mid cap space appears to be oversold. It is also holding onto its 200 day EMA as support. The stock can be accumulated between 102-105 for a target of 114."