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

Nifty struggles at 8400; IT & banking weigh , services PMI eyed

“Equity markets showed positive momentum during initial hours with Nifty gaining but gave up gains later in trended downwards breaking 8400. Rupee traded in a narrow range providing no support to banking stocks. As no major announcement was made in Gyan Sangam, banking stocks saw profit booking and investors awaited major retail inflation and IIP data expected early next week. HSBC services PMI for month of December expected soon was eyed by investors with IT stocks also taking a breather and witnessing profit booking. Both sectors which moved Nifty higher on Friday took breather while Auto stocks rose on back of better sales in month of December and pick up expectation. Metal stocks also gained today lifting index as Chinese index SSE rose more than 3%. While falling global oil prices remained under pressure keeping energy stocks under pressure. ” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Equity markets showed positive momentum during initial hours with Nifty gaining but gave up gains later in trended downwards breaking 8400. Rupee traded in a narrow range providing no support to banking stocks. As no major announcement was made in Gyan Sangam, banking stocks saw profit booking and investors awaited major retail inflation and IIP data expected early next week. HSBC services PMI for month of December expected soon was eyed by investors with IT stocks also taking a breather and witnessing profit booking. Both sectors which moved Nifty higher on Friday took breather while Auto stocks rose on back of better sales in month of December and pick up expectation. Metal stocks also gained today lifting index as Chinese index SSE rose more than 3%. While falling global oil prices remained under pressure keeping energy stocks under pressure.

Other Asian Markets

Weak close on Wall Street and weak manufacturing data in US kept Asian markets under pressure with Nikkei trading with negative bias. SSE registered strong gains today as participants anticipated easing by PBOC to spur economy.  Most indices remained negatively based otherwise.

Commodity Outlook:

Commodity Market was very weak in the morning session. Gold and Silver Prices showed strength in the morning session due to strong Chinese demand and wavering Equity Markets. Crude Oil Prices continued to slip in the morning session on supply concerns while Natural Gas Prices rallied on Cold weather outlook in USA. Base Metals traded flat in the morning session but showed lot of weakness due to uncertain Equity markets and growth concerns.

Evening outlook:

Gold and Silver Prices could dip in the Evening session on strong dollar; Crude Oil and Natural Gas Prices could rebound in the Evening session while Base Metals are expected to trade flat.

Stock Recommendations:

TATA Motors - Buy at Rs. 523.80(CMP); Target -Rs. 530.00; Stop Loss –Rs. 518.00

Apollo Hospital - Buy at Rs.1131.60(CMP); Target –Rs.1143.00; Stop Loss –Rs.1119.00

IOCL - Buy  Rs.338.20 (CMP); Target – Rs. 342.00; Stop Loss – Rs. 335.50

Sectors Snapshot

Bank Nifty: Banking index saw mixed momentum today with PSBs trading in negative territory as no major announcement was made by govt. in Gyan Sangam conclave. Some buying was seen in private banks but the momentum remained weak with investors taking profit ahead of retail inflation and IIP data early next week.

CNX IT: IT stock witnessed negative momentum today as investors took profit after recent rally. Rupee failed to provide any further cues for up move on major IT cos while Infosys will post Q3 results on Friday this week which was eyed by participants. HSBC services data was also awaited by investors.

CNX Energy: Energy sector lost around 20 points in the session today; Oil Producers ONGC and Cairn India rebounded from lower levels as Investors betted on rise in crude oil prices; Reliance was the biggest loser in the sector as Brent hit multi year lows in the session today.

CNX Pharma: Indices opened flat today tracking no major trigger in global market; however weakness in global markets led to fall in the indices. Profit taking was seen across various sectors. Dr. Reddy's was the major loser among the index while others was seen closing flat with negative bias. Cadila Healthcare was up by 4.41%.

Market Movers

Gainers

Maruti Suzuki: Shares were the top gainer in today's session after international brokerage firm CLSA said that company remained its top pick in the Indian auto sector for 2015.

Tata Motors: Shares were seen up after the stock was chosen as one of the top picks for 2015 by HDFC Securities.

Losers

DLF: Shares were hit by profit taking today after over 2% rise in previous session after news that Morgan Stanley, JP Morgan to advise company on REIT.

Dr. Reddy's: Shares of the company were seen down over 2% in today's session due to profit taking tracking global weakness in the market.

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