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

Nifty breached 8300 levels on account of short covering, global cues

“Equity markets witnessed positive momentum today tracking positive cues from global markets, rebound in oil prices and strong close on Wall Street. Domestic factors driving the markets were positive review from govt. on inflation expectations which remained lower in coming year. Also, GST bill which will be taken up in next session of Parliament kept equities higher. Nifty reclaimed 8300 mark lifted by metal, energy and banking stocks. The breadth remained positive on the benchmark. Stability in Rupee at higher levels and its further resistance to depreciate lifted banks.US Q3 GDP data to be released tomorrow was eyed by market participants for further positive cues from global markets. December F&O expiry earlier this week is expected to keep markets volatile this week” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Equity markets witnessed positive momentum today tracking positive cues from global markets, rebound in oil prices and strong close on Wall Street. Domestic factors driving the markets were positive review from govt. on inflation expectations which remained lower in coming year. Also, GST bill which will be taken up in next session of Parliament kept equities higher. Nifty reclaimed 8300 mark lifted by metal, energy and banking stocks. The breadth remained positive on the benchmark. Stability in Rupee at higher levels and its further resistance to depreciate lifted banks.US Q3 GDP data to be released tomorrow was eyed by market participants for further positive cues from global markets. December F&O expiry earlier this week is expected to keep markets volatile this week.

Other Asian Markets

Asian markets closed with a positive bias today. Major indices closed in positive territory. Positive close on Wall Street lifted the sentiment. Rebound in oil prices were again a booster for equities. Mixed move on currencies against the greenback was seen. China's indices closed higher on expectations of PBOC easing.

Commodity Outlook:

Commodity Market showed moderate volatility in the morning session. Gold and Silver Prices showed strength but their upper side remained limited on strong dollar and strength of Equity Markets. Crude Oil made gains in the morning session as Asian Equity Markets showed strength while Natural Gas Prices dipped more than 6% on uncertain weather forecasts in USA. Base Metals remained strong as they were supported by strong Equity Markets.

Evening outlook:

Gold and Silver Prices are expected to be range bound in the Evening session; Crude Oil and Natural Gas are expected to trade flat while Base Metals could continue to be strong.

Stock Recommendations:

IOC - Buy at Rs.335.65(CMP); Target - Rs.340.0; Stop Loss – Rs.332.0

Zee - Sell at Rs.377.95(CMP); Target - Rs.374.00; Stop Loss – Rs.381.50

Wipro - Buy at Rs.555.15; Target – Rs.561.00; Stop Loss – ` Rs.549.00

Sectors Snapshot

Bank Nifty –Banking stocks were up today and buying was seen at lower levels. Resistance in USDINR at higher levels supported banking stocks. Banks rallied as after govt.'s midyear review expected lower retail inflation levels in coming quarters which made a strong case for a rate cut early next year.

CNX IT: Elevated levels in USDINR kept IT stocks in positive territory today. Positive sentiment on markets also supported IT index. While major stocks traded mixed on account of some profit taking, mid cap stocks were mostly in red.

CNX Energy: Energy Sector gained more than 100 points in the session today support by the rise in Crude Oil Prices. All stocks in the sector closed in positive while Cairn India was the biggest gainer in the sector gaining more than 3%.

CNX Pharma: Index opened marginally higher from previous session. Inflows were seen in all the sectors, however, rate sensitive stocks were seen as the major gainers. Value buying was seen under Pharma stocks. Glenmark Pharma surged 2.7% being the top gainer among the index.

Market Movers

Gainers

JSPL: Shares rose and was the top gainer in today's session as company arm allotted 5 billion rupees NCD's to Kotak Bank in three series.

Coal India: Shares rose over 3% and touched three month high on news that the company will consider a rise of 5-8% in coal prices in January.

Losers

Hindalco: Profit taking was seen after consecutive rise from past three session as company aims a record $1 billion worth of aluminium exports.

Zee Entertainment: After a surge in more than 5% in past five sessions, profit taking was seen in today’s session being the second top loser of the day.

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