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

Nifty makes new highs; Earnings in focus in coming sessions

“Indian indices were seen trading flat after a gap up opening tracking positive US markets. As Asian markets were see weak due to China’s weak manufacturing data, domestic markets did not see much positive movements. European markets were seen trading weak after euro zone data released. Some positivity was seen in markets after Indian manufacturing data posted a rise 51.6 from 51.0 in September. Auto index was down on account of fall in October sales. Nifty was supported by auto index which rallied by 3.64%. Nifty however managed to close in green at 8324.15” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian indices were seen trading flat after a gap up opening tracking positive US markets. As Asian markets were see weak due to China’s weak manufacturing data, domestic markets did not see much positive movements. European markets were seen trading weak after euro zone data released. Some positivity was seen in markets after Indian manufacturing data posted a rise 51.6 from 51.0 in September. Auto index was down on account of fall in October sales. Nifty was supported by auto index which rallied by 3.64%. Nifty however managed to close in green at 8324.15.

USD INR opened low by 13 paisa tracking weak cues from Asian markets after weak manufacturing data shown by China and unexpected easing of monetary policy by Bank of Japan leading to fall in Yen. However on better Indian PMI data that rose to 51.6 from 51 in September gave positive movement for the unit supported by sale of dollar by custodian banks. Rupee was seen trading at 61.4 at the end of equity markets near its previous close.

Other Asian Markets

Asian indices ended mixed today after China posted weak manufacturing data at 50.8 against 51.1 in previous month coupled with news that their service sector grew at slowest pace. NIKKEI was closed on account of holiday. KOSPI was seen down by 0.58% to close at 1952.97 after weekend data released showed their imports fell by 3%.

Commodity Outlook:

Commodity Market traded flat in the morning session. Gold and Silver Prices continued to trade at lower levels in the morning session as dollar remained strong and Equity Markets were seen rising. Crude Oil Prices bounced back slightly in the morning session due to bargain hunting and Natural Gas Prices were up nearly 4% due to chilly weather forecasts in USA. Base Metals traded positive in the morning session supported by good PMI numbers from India and China.

Evening outlook:

Gold and Silver Prices are expected to remain weak; Crude Prices are expected to be flat while Natural Gas Prices could make more gains; Base Metals are expected to remain steady in Evening session.

Stock Recommendations:

Bank of Baroda– Buy at Rs.950.05(CMP); Target - Rs.960.00; Stop Loss – Rs.941.00

JSPL – Buy at Rs.170.15(CMP); Target - Rs.172.00; Stop Loss – Rs.168.50

BPCL – Sell at Rs.724.05(CMP); Target - Rs.716.00; Stop Loss – Rs.731.00

Sectors Snapshot

Bank Nifty: Bank Nifty opened up tracking positive global cues and continued to stay in positive ahead of Bank of Baroda’s Q2 earnings which gained 2.21% in today’s session supported by Punjab national bank up by 2.02%. Positive manufacturing data gave some support to the index.

CNX Energy: Energy space traded in flat range bound with negative bias. Gail India was down by 5.57% to close at 499.35 after touching all time highs due to robust earnings posted by the company. Reliance power was major gainer up by 3.86%.

CNX Pharma: Pharma index managed to close in green after gaining in last half hour of the trade supported by rise in Ranbaxy and Glenmark Pharma up by 1.40% and 1.35% respectively.

CNX Media: Media space was dragged by Network 18 Media which rose up by 10.78% due to buying at lower levels followed by Eros International which rose by 5.14%.

India VIX: India VIX was up by 3.33% as market traded in a range.

Market Movers

Gainers

JSPL: Shares of the company were top gainer in today’s session gaining 5.16% to close at 170.15 ahead of Q2 earnings that is due tomorrow. However, company is expected to post a bad result due to coal block allegation.

Losers

Gail India: Shares of the company were seen down in today’s session as huge chunk of profit booking was seen after company posted its Q2 results yesterday which met estimates and net profit was up by 42.3% on year. Shares fell by 5.57% to close at 499.35 being Nifty’s worst performer.

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