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

Nifty goes Boom Boom; Touches 5 Week High as Metals and Realty Shine

“Indian benchmark indices opened higher tracking positive cues from Wall Street after Dow reclaiming 17000 levels. Nifty gapped up 49 points in today’s session and continued to remain in positive closing at 8090.45 up by 0.78%. Nifty was supported by metal index which gained 2.73% and Realty which was up by 3.12% and auto companies. Hindalco was the top gainer in today’s session as government is likely to increase FDI in construction sector. The upside was limited due to fall in banking stocks after Moody’s maintained their negative outlook on Indian Banking System” ,Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian benchmark indices opened higher tracking positive cues from Wall Street after Dow reclaiming 17000 levels. Nifty gapped up 49 points in today’s session and continued to remain in positive closing at 8090.45 up by 0.78%. Nifty was supported by metal index which gained 2.73% and Realty which was up by 3.12% and auto companies. Hindalco was the top gainer in today’s session as government is likely to increase FDI in construction sector. The upside was limited due to fall in banking stocks after Moody’s maintained their negative outlook on Indian Banking System.

USD INR pair opened at 61.25 up 07 paisa tracking positive cues from global markets as Dow was seen up. Indian indices were seen trading with positive bias which supported rupee, however month end demand for dollar from importers weighed pressure on rupee brining back to 61.35 levels. Major Asian currencies were seen trading strong while USD index is seen marginally up. Investors are cautious ahead of Fed meet that would end today after market hours.

Other Asian Markets

Tracking the positive cues from Wall Street Asian indices were seen trading strong in today’s session closing more than 1%. NIKKIE was up after September industrial production data released which boosted the sentiments. While Hang Seng index gained 1.27% to close at 23819.87 and SSE Composite closing 1.5% up. KOSPI was seen up by 1.84% on back of strong corporate earnings.

Commodity Outlook:

Commodity Market was range bound in the morning session. Gold and silver prices traded sideways today as Investors were cautious ahead of the Fed minutes. Crude Oil Prices were up in the morning session while Natural Gas Prices were flat despite chilly weather forecasts in USA. Base metals showed strength ahead of Fed minutes as they rallied along with Equity markets.

Evening outlook:

Gold and Silver prices are expected to remain flat in the Evening session; Crude Oil and Natural Gas are expected to make gains while Base Metals are expected to remain flat in the Evening session.

Stock Recommendations:

SSLT – Buy at Rs.255.25(CMP); Target - Rs.259.00; Stop Loss – Rs.252.00

Hindustan Zinc – Buy at Rs.171.85(CMP); Target - Rs.174.00; Stop Loss – Rs.169.00

Yes Bank – Buy at Rs.638.3(CMP); Target - Rs.645.00; Stop Loss – Rs.632.00

Sectors Snapshot

Bank Nifty: Bank Nifty opened higher tracking global markets but erased all its gains on report that Moody’s maintain their negative bias on domestic banking system. PNB was the major loser falling 1.80% followed by Bank of Baroda.

CNX Energy: Energy index opened higher and traded in green as crude continued to stay at lower levels. Cairn India was the top gainer gaining 2.47%. However some profit taking was seen in OMC’s. NTPC fell by 1.02%.

CNX Pharma: Pharma fell and could not maintain the gains after Dr. Reddy’s showed weak results and profit booking was seen in Ranbaxy and Sun pharma. Ranbaxy was the major loser falling 1.64% followed by Dr. Reddy’s.

CNX Media: Media index gained slowly in today’s session and was up by 1.06% supported by PVR (+3.96), HT Media (+3.81) and Sun TV Network (+3.13).

India VIX: India VIX was down by 2.38%% as Indian markets were seen positive.

Market Movers

Gainers

Sun Pharma: Hindalco rallied along with other stocks and was the top gainer on Nifty today as Global Metal prices shot up ahead of Fed minutes along with Equity Markets. The Union Cabinet is likely to propose increase in FDI in construction sector which brought more Investors into metal stocks. Shares were up by 6.23% to close at 156.9.

Losers

PNB: Shares of PSU’s bank were down after good opening as Moody’s said that their outlook remains negative for Indian banking system. While Punjab National Bank was the top loser amongst the Nifty constituents falling 1.82% to close at 904.8.

For more information and tables Click Here