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

Synopsis:

Indian benchmark indices opened lower following profit booking in global markets. Nifty opened lower by 37 points and showed weakness for first half of the session. Rupee also remained in a narrow range and European markets opened in red and continued to show weakness. But Indian benchmarks indices gained from the positive comments from PM, revenue secretary's comments that GST talks are in advanced stage, ahead PM’s visit to US and as RBI policy on 30th Sept faced the markets. Heavyweight stocks such as ONGC, ITC ,SBI and TATA Motors led the gains and lifted Nifty while DLF, Zee dragged Nifty. Nifty closed near 8150 at 8146.30 and Sensex at 27206 defending 27000 mark.

Indian Markets

Indian benchmark indices opened lower following profit booking in global markets. Nifty opened lower by 37 points and showed weakness for first half of the session. Rupee also remained in a narrow range and European markets opened in red and continued to show weakness. But Indian benchmarks indices gained from the positive comments from PM, revenue secretary's comments that GST talks are in advanced stage, ahead PM’s visit to US and as RBI policy on 30th Sept faced the markets. Heavyweight stocks such as ONGC, ITC ,SBI and TATA Motors led the gains and lifted Nifty while DLF, Zee dragged Nifty. Nifty closed near 8150 at 8146.30 and Sensex at 27206 defending 27000 mark.

USDINR opened flat and remained in a narrow range of 10 paisa. RBI credit policy on 30th Sept triggered caution on Rupee. GOI 10 year yields were down 0.23% suggesting RBI to maintain a status quo on rates. USD index was trading flat at -0.4% but near its two year high as Indian markets closed. Fed rate tightening concerns kept Dollar a safe haven and Rupee under pressure today. USDINR touched intraday high at 60.8550. Most Asian currencies were mixed to slightly weak against US Dollar.

Other Asian Markets:

Asian markets closed with a negative bias. SSE closed 1.7% as fears remained among market participants of tomorrow’s preliminary reading on Chinese Manufacturing sector could show slow down. Hang Seng fell 1.3%.Pofit taking was seen on Nikkei as Yen traded flat.

Commodity Outlook:

Commodity Market was very weak in the morning session and traded with little volatility. Gold and Silver continued to slide to due to subdued demand and strength of Equity Markets. Crude Oil also dipped mainly due to bearish US supply data and Natural Gas Price also looked weak due to mild weather forecasts in USA. Base Metals also looked weak in the morning session due to Global supply concerns. Nickel Prices continued to dip in the morning session extending it s losing streak to over a 12% in the last 2 weeks. Copper Prices also dipped due to weak fundamentals in China.

Evening outlook:

Gold and Silver could trade low but sluggish Equity Markets may lend its prices some support; Crude Oil could make gains on bargain hunting while Natural Gas is expected to dip; Base Metals could continue to look weak in the evening session

Stock Recommendations:

GAIL– Buy at Rs 454.05(CMP); Target - Rs 459.00; Stop Loss – Rs 450.00

Axis Bank–Buy at Rs 408.20(CMP); Target - Rs 413.00; Stop Loss – Rs 404.00

ONGC– Buy at Rs 419.10(CMP); Target - Rs 423.50; Stop Loss – Rs 416.00

Sectors Snapshot:

Bank Nifty: Bank Nifty opened at a weak note but continued to show strength led by gains in SBI (+1.31%) and PNB (+1.13%). Kotak Mahindra was top loser on the index. Bank Nifty erased its losses and closed up by 42 points. RBI policy meet remained in focus.

CNX Energy: Energy index also opened lower but was lifted by ONGC (+3.74%) and BPCL (+1.99%). The session was strong for these stocks but other constituents remained mostly flat. CNX Energy closed near its intraday high.

CNX Pharma: After run up in past weeks Pharma stocks witnessed profit booking. The session was weak with a overall negative breadth. Major stocks closed in red with Cipla losing 2.42% and Sun Pharma 1.09%.

CNX Media: Media stocks also witnessed profit booking with index losing 1.32%.Major stocks were negative. Zee Entertainment corrected 2.06% after rising in previous sessions.

India VIX: India VIX closed down by 2.71%.

Market Movers:

Gainers

Tata Motors: Shares of the company were seen up by 2.72% to close at 540.05 and touched its life time high of 542.50 as the company's rating were upgraded by the Moody's. On positive sentiments by the investors and long term stability is seen the company's shares were top gainer among the Nifty constituents.

Losers

DLF: The shares of the company were seen down and were the top loser among the Nifty constituents as Supreme Court issues notice to the company on competition panel Plea. The shares of the company were down by 3.05% to close at 166.70.

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