Comments on the Market by Mr. Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities

Synopsis:

Benchmark indices Nifty and Sensex witnessed a roller coaster ride today as global and domestic factors weighed on markets. Positive closing in US markets and strong Asian markets in morning provided a strong start on Nifty. Nifty opened higher at 8115.15 but soon heavyweights ONGC, Coal India dragged Nifty. PSB SBI provided support to Nifty with Index witnessing private and public banks moving opposite direction ahead of CPI and IIP data. Advance Decline ratio on Nifty was at 25:25. Asian markets also gave up gains while European markets opened in green but soon gave up gains as US premarket opened traded in negative. Nifty closed below 8100 levels at 8085.75 while Sensex also broke 27000 mark closing at 26995.87.

Indian Markets:

Benchmark indices Nifty and Sensex witnessed a roller coaster ride today as global and domestic factors weighed on markets. Positive closing in US markets and strong Asian markets in morning provided a strong start on Nifty. Nifty opened higher at 8115.15 but soon heavyweights ONGC, Coal India dragged Nifty. PSB SBI provided support to Nifty with Index witnessing private and public banks moving opposite direction ahead of CPI and IIP data. Advance Decline ratio on Nifty was at 25:25. Asian markets also gave up gains while European markets opened in green but soon gave up gains as US premarket opened traded in negative. Nifty closed below 8100 levels at 8085.75 while Sensex also broke 27000 mark closing at 26995.87. Correction in equity markets and FII/FPI outflow in previous session kept Rupee in a range today. Rupee opened flat at 60.94 and strongly took support near 60.9350 levels. Tracking strength from equity markets in morning Rupee made gains of 20 paisa and touched intraday low of 60.7250 as equity markets closed. Asian currencies were mixed against US dollar with Yen at 8 month low. USD Index was down 0.09% giving up early gains.

Other Asian Markets:

Asian indices opened in green but gave up gains with exception of Nikkei which rallied 0.76% on weak yen. Yen touched 8 month low providing support to Nikkei 225. Shanghai and HSI closed in red after Chinese inflation came in at 2% lower than expected.

Commodity Outlook:

Commodity market was very weak in the morning session. Gold and Silver Prices hit their 3 month lows due to strong dollar and rate hike fears by the Fed. Crude Oil Prices were down after less than expected US supply data and Natural Gas prices were weak ahead of US supply data. Base Metals also traded weak in the morning session with Copper leading the way due to Global supply concerns.

Evening outlook:

Investors should keep a close eye on how US attack on ISIS would affect Bullion prices; Crude Oil is expected to make small gains while Profit taking could affect Natural Gas prices; Base metals could continue to be weak due to Global supply concerns

Stock Recommendations:

United Spirits Ltd.– Buy at Rs. 2283.80(CMP); Target - Rs 2310.00; Stop Loss – Rs 2260.00

Eid Parry–Buy at Rs 238.85(CMP); Target Rs 242.00; Stop Loss – Rs 237.00

Crompton Greaves– Sell at Rs 224.65(CMP); Target - Rs 222.00; Stop Loss – Rs 226.50

Sectors Snapshot:

Bank Nifty: Bank Nifty opened higher but showed signs of weakness as benchmark remained under pressure. Bank Nifty closed 52.40 points up.PSU banks recovered today and registered decent gains lifting the index. SBI rose 2.08% moving Bank Nifty up.

CNX Energy: Energy index opened higher but gave up gains closing 0.28% down. ONGC was top loser dragging the index. ONGC lost 3.57% as oil prices fell below 100. Other stocks were flat to positive supporting the index. IOCL was top gainer (+1.59%).

CNX Pharma: CNX Pharma opened lower and witnessed sharp selloff causing index to shed 1.9%.Ranbaxy and Sun Pharma dragged index, both losing more than 4%.

CNX Media: Media index lost momentum in last hour of the trade and closed 1.42%. Major stocks Zee Entertainment, Sun TV and TV 18 were down more than a percent. Other stocks were flat to negative.

India VIX: India VIX lost 3.19% as Nifty consolidated.

Market Movers:

Gainers

IDFC: Shares of the company were seen up on news that the companies QIP received a good response. The company aims to raise 20 billion rupees. IDFC is offering shares to qualified institutional buyers to bring its foreign shareholding to below 50% in order to meet bank license requirements. Shares were up by 3.59% to close at 150.10.

Losers

Sun Pharma: The shares prices were down on report that the company's manufacturing unit in Gujarat is undergoing a surprise inspection by US Food and Drug Administration due to which the stock was the worst performer among the Nifty constituents. The shares were sown by 4.31% to close at 822.30.

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