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

Nifty dips from highs on profit taking; Investors eye Fed minutes for further cues.

“Indian benchmark indices witnessed profit booking in final hours of the trade with Nifty closing below 8400. The fall was seen as investors took profit off the table ahead of US FOMC minutes expected tomorrow. Also, public banks which rallied in previous session but saw profit taking. IT stocks gained on back of strength in Rupee. FII flows turned negative in previous session suggesting cautious approach in Indian equities. Growth concerns of Japan also weighed on market sentiment. Lower global metal prices dragged JSPL making it top loser on Nifty” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian equity markets opened higher tracking positive gains from Wall Street. Nifty opened higher but gave up early gains as Asian markets were weak in morning session and Rupee continued to weaken against USD. Profit booking was seen in Nifty in second half of the session as caution was seen ahead of US FOMC minutes to be releasedtomorrow. Public banks lost momentum and witnessed profit booking at higher levels. Few pharma stocks lifted the index as inflows were seen in defensives. FII flows turned negative in previous session keeping the momentum weak. European markets also traded with caution further weakening the sentiment. Nifty closed below 8400.

Other Asian Markets

Asian indices closed in red with Nikkei falling after Japan kept its QE intact amid weak economy. Japan posted weak GDP numbers few days back suggesting that the economy is entering into recession. China’s SSE also closed in negative amid concerns of slowing economy. KOSPI gave up gains and witnessed weak closing.

Commodity Outlook:

Asian indices closed in red with Nikkei falling after Japan kept its QE intact amid weak economy. Japan posted weak GDP numbers few days back suggesting that the economy is entering into recession. China’s SSE also closed in negative amid concerns of slowing economy. KOSPI gave up gains and witnessed weak closing.

Evening outlook:

Gold and Silver are expected to remain steady in the evening session; Crude Oil and natural gas are expected to make gains while base metals are expected to be range bound in the Evening session

Stock Recommendations:

Cairn India – Buy at Rs.261.15(CMP); Target - Rs.264.00; Stop Loss – Rs.259.00

JK Laksmi Cemnets - Sell at Rs.651.20(CMP); Target - Rs.644.50; Stop Loss – Rs.657.50

Asian Paints - Sell at Rs.683.10(CMP); Target - Rs.676.00; Stop Loss – Rs.690.00

Sectors Snapshot

Bank Nifty: Bank Nifty opened higher but gave up gains gradually as Rupee weakened. Sharp profit booking was seen in Public banks which rose in previous sessions. FOMC minutes kept banking stocks under pressure leading to outflow in banking stocks.

CNX IT: IT stocks traded flat for most session but witnessed inflows on back of strength in global tech stocks. Export oriented IT stocks gained as Rupee depreciated and moved towards 62.00 ahead of US FOMC minutes to be releasedtomorrow.

CNX Energy: Energy Sector lost over 100 points in the trading session today with most of the companies trading in red. ONGC and Cairn India continued to fall as Crude Prices hit new lows after Saudi Price cut. Though low Crude Prices supported OMCs, profit taking continued to affect their momentum.

CNX Pharma: Pharma index saw a flat session with inflows coming in to defensives after cyclicals witnessed profit booking. With FII flows negative in previous session as fund rotation was seen into defensives thus keeping the index stable.

Market Movers

Gainers

Dr. Reddy's: Fall in benchmark indices due to profit taking was seen in today's which saw inflows in Pharma sector where Dr. Reddy's was seen to be the major gainer among Nifty constituents.

HCL: IT space marginally ended up due to choppy trade in cyclical, defensive were major gainers in today’s session. HCL was one of the gainers among them.

Losers

Tata Steel: Shares were down as metal space took a beating as profit taking was seen in the sector with TATA Steel being the major loser among all.

JSPL: Metal stocks were seen down today due to profit taking after a rise in yesterday's session. Global base metals price remains at lower level. JSPL was the second top loser among Nifty.

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