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

Nifty volatile ahead of November expiry, fails to reclaim 8500

“Indian markets opened lower but restricted losses as US GDP data suggested pick up in economy. Domestic Q2 GDP numbers kept investors under caution today. Banking stocks were trading with negative bias on account of profit booking and awaited RBI policy decision next month. IT stocks also could not provide substantial support to the index as no cues were seen from USDINR. November expiry remained in focus. Going forward, November expiry is expected near 8400 levels” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian benchmark indices witnessed a volatile session today as November expiry weighed on markets. Nifty opened lower but restricted losses and made a smart recovery as US GDP data was positive and Asian Indices also supported the positive sentiment. While winter session of parliament remained in focus investors were also cautious ahead of Q2 GDP data expected on Friday. Nifty could not sustain 8500 and closed at 8475.75. Rupee traded in narrow range as Dollar was weak while Dollar demand from oil importers capped gains on Rupee. IT and private banks were weak on account of profit booking while ITC saw some short covering after its fall in previous session. FII inflows were positive in previous session thus supporting markets.

Other Asian Markets

Asian indices closed higher post US Q3 GDP data which showed economy rose at 3.9%. Nikkei recovered but gave up gains on back of Strength in Yen which dragged export stocks. HSI and SSE continued up move post rate cut by China and registered gains of more than a percent. KOSPI showed a flat trading session as the index took breather after recent rally.

Commodity Outlook:

Commodity Market was very volatile in the morning session. Gold and Silver Prices showed lot of weakness as Equity Markets were strong after upbeat US GDP data. Crude Oil traded with volatility ahead of OPEC meeting while Natural Gas Prices were flat as Investors remained cautious due to weather uncertainties in USA. Base Metals were mixed while Aluminium Prices zoomed as demand increased on US data.

Evening outlook:

Gold and Silver Prices are expected to weak in the Evening session; Crude Oil and Natural Gas are expected to trade with positive bias while Base metals are also expected to be positive in the Evening session.

Stock Recommendations:

Cairn India – Buy at Rs.273.35 (CMP); Target –Rs.277.00; Stop Loss –Rs.271.00

ICICI Bank - Sell at Rs.1710.40(CMP); Target –Rs.1690.00; Stop Loss –Rs.1745.00

Adani Power- Sell at Rs.296.80(CMP); Target –Rs.293.50; Stop Loss –Rs.300.00

Sectors Snapshot

Bank Nifty: Bank Nifty closed in red ahead of November expiry. Recent rally in bank nifty kept banking stocks under consolidation, range bound trade in Rupee also kept banks under pressure while caution was seen ahead of GDP numbers expected this Friday. Positive global data restricted losses on banking stocks.

CNX IT: CNX IT also traded in narrow range with negative bias as USDINR failed to cross 62 and waited for Q2 GDP data before making move. Major stocks were weak weighing on index, Overall breadth on IT stocks was negative as investors were seen booking profits.

CNX Energy: Energy Sector traded with flat in the session today as Investors were cautious ahead of the OPEC meeting later this week which could determine the fate of Crude Prices. Oil Producers didn’t make much of a move while GAIL was the top gainer in the index today.

CNX Pharma: Pharma space was seen in a range bound and traded flat with negative bias. Major companies were seen flat to positive while others were down over 1%. Index was choppy ahead of expiry of F&O contracts. Piramal Enterprise was the top loser among the index constituents.

Market Movers

Gainers

DLF: Company seeks waiver from depositing 5.8 billion rupees penalty in the competition case, company told Supreme Court yesterday that order of SEBI barring the company has crippled their finances.

Gail: Gail rose ahead of fresh buying and roll over in December contracts from November contracts in F&O. Also the company was seen under pressure from govt. to get one third of its LNG ship from Indian makers.

Losers

Zee Entertainment: Shares were seen down and was top loser due to profit taking after rise in previous two consecutive sessions on plans of launching a new entertainment channel.

Bharti Airtel: Shares fell on report that the Department of Telecommunications wants the company to pay a one-time license fee before starting fourth generation services in Delhi and Mumbai.

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