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

Nifty Nov F&O expires at 8500 led by IT, auto and banks. Q2 GDP eyed

“Indian equity markets made smart recovery today on back of strength in global markets. Banking stocks supported the index on expectations of rate cut by RBI in upcoming policy review. Auto stocks gained as further excise duty concessions by govt. were anticipated by market participants. Oil feel to 4 year lows on hopes of no supply cut by OPEC, thus lifting OMC stocks. Rupee traded in a range ahead of Q2 GDP data expected tomorrow. Nifty Nov. contracts expired at 8494 led by gains in IT stocks on global tech stock strength, banks and Auto. Buying was seen in Pharma as well," Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian markets witnessed volatile session today on account of November expiry. Nifty Nov. contracts expired at 8494.20. Global markets also remained towards positive side with major European indices keeping sentiment stable. Rupee also traded in a narrow range ahead of Q2 GDP data. Banking stocks remained mixed as investors were cautious ahead of GDP data while IT stocks gained momentum with buying coming in post recent consolidation and strength in global tech stocks. OMC stocks gained as global Brent prices fell to 4 year low on expectations that OPEC will not cut supply. Going forward, GDP data will be in focus tomorrow and will set direction for banking stocks and Nifty. Auto stocks moved up lifting index on media reports that Govt. may give excise duty concessions to car makers.

Other Asian Markets

Asian indices closed mixed with SSE registering gains post rate cut by China’s central bank last week. While HSI gave up gains and closed in red. Strength in Yen against the greenback kept Japanese shares under pressure, export stocks were down with Nikkei closing down by 0.78%. Australian shares restricted gains but index registered gains.

Commodity Outlook:

Commodity Market showed moderate volatility in the morning session. Gold and Silver Prices opened lower on Profit taking but showed strength due to soft dollar and mixed Equity Markets. Crude Oil Prices hit 4 year low ahead of OPEC meeting while Natural Gas Prices dipped due to warm weather forecasts in USA. Base metals showed strength in the morning session due to hopes of further economic stimulus in China.

Evening outlook:

Gold and Silver Prices are expected to show strength in the Evening session; Movement in Crude could be decided by OPEC decision while Natural Gas prices are expected to remain weak; Base Metals could also trade with positive bias in the Evening session.

Stock Recommendations:

TVS Motors - Buy at Rs.231.6(CMP); Target - Rs.234.00; Stop Loss – Rs.229.00

Tata Motors - Buy at Rs.519.95(CMP); Target - Rs.525.50; Stop Loss – Rs.514.50

Indian Oil Corp.– Buy at Rs.349.05 (CMP); Target - Rs.353.00; Stop Loss – Rs.346.00

Sectors Snapshot

Bank Nifty: Bank Nifty gained mildly today as investors were cautious ahead of Q2 GDP data and RBI policy next week. Most banks were in a range and closed mixed while PNB rose 3% as company decided not to put cap on ATM transactions. RBI rate cut expectations held 18,000 mark for bank nifty.

CNX IT: CNX IT index gained today post consolidation in previous sessions. Major IT stocks were up as Rupee was hovering near 62 levels. Also, strength in global tech stock also lifted IT stocks.

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. OMCs showed strength today while oil producers remained weak in expectation of status quo regarding crude prices.

CNX Pharma: Pharma was seen range bound today with positive closing. most of the stocks were flat to positive. Index was supported by gains in Cadila healthcare and Cipla. Cipla was up as MMV announces collaborations with Cipla and Strides.

Market Movers

Gainers

BHEL: Shares rose on report that company would set up two thermal power plants at a cost of 30 billion rupees to settle a part of debt that India owes to Russia.

PNB: PNB rose more than 3% in today's session due to volatile session on the day of expiry. Company has decided not to put cap on number of free ATM transaction.

Losers

DLF: Shares were top loser after Supreme Court asked the company to deposited 1 billion rupees of the antitrust fine. Court posted its plea for the waiver of the rest of the fine for hearing on Friday.

Bharti Airtel: Shares continued to fall on a 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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