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

Nifty fails to reclaim 8300, WPI at 0.11% for December; metal stocks fall

“Indian benchmark indices witnessed another volatile session today with India VIX rising as much as 4% suggesting fear in markets. Free fall on global oil prices continued dragging energy stocks today while metals also continued its fall as global base metal prices slipped on account of weak economic growth outlook anticipation by market participants. Banking stocks also did not extend support to Nifty as WPI data came at 0.11% for month of December as food prices rebounded slightly. RBI policy early in February remained in focus while Fed policy later this month also kept markets cautious. European indices were down taking weak cues from Wall Street. Profit booking was seen in Pharma stocks after recent up move. Auto stocks gained Yes bank posted decent results which limited losses on bank Nifty.” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian benchmark indices witnessed another volatile session today with India VIX rising as much as 4% suggesting fear in markets. Free fall on global oil prices continued dragging energy stocks today while metals also continued its fall as global base metal prices slipped on account of weak economic growth outlook anticipation by market participants. Banking stocks also did not extend support to Nifty as WPI data came at 0.11% for month of December as food prices rebounded slightly. RBI policy early in February remained in focus while Fed policy later this month also kept markets cautious. European indices were down taking weak cues from Wall Street. Profit booking was seen in Pharma stocks after recent up move. Auto stocks gained Yes bank posted decent results which limited losses on bank Nifty.

Other Asian Markets

Asian markets were down today tracking weak close from Wall Street and free fall in global oil prices continuing. Chinese markets were down as economic growth outlook remained low. Nikkei witnessed sharp selling and shed close to 2%.

Commodity Outlook:

Commodity Market was very volatile in the morning session; Profit taking hampered the momentum of Gold and Silver but their downside remained limited due to uncertain Equity markets; Crude Oil Prices continued to remain at lower levels in the morning session while Natural Gas continued to trade with positive bias due to cold weather outlook in USA; Base Metals hit fresh multi year lows in the morning session as weak global demand continued to hamper their prices.

Evening outlook:

Gold and Silver Prices are expected to rebound in the Evening session; Crude Oil and Natural Gas are expected to positive while Base Metals are expected to be weak in the Evening session.          

Stock Recommendations:

Aurobindo Pharma - Sell at Rs.1144.5(CMP); Target -Rs.1132.00; Stop Loss –Rs.1156.00

Yes Bank - Buy at Rs. 786.70(CMP); Target -Rs. 795.00; Stop Loss –Rs. 768.00

Amara Raja Batteries- Buy at Rs.841.1(CMP); Target -Rs.850.00; Stop Loss –Rs.833.00

Sectors Snapshot

Bank Nifty: Bank Nifty was down today as WPI inflation climbed slightly after recent downward trend. Rupee also traded in a narrow range limiting gains while fall in oil prices and weakness in China weakened global economic growth outlook keeping financials under pressure. RBI policy early next month was eyed.

CNX IT: IT index registered gains today after taking breather yesterday. Major stocks were mostly up with Infosys witnessing further inflows after its stellar performance in Q3.Buying was seen in select mid cap names ahead of Q3 numbers while overall breadth remained largely mixed. Limited gains in Rupee also kept IT buoyed.

CNX Energy: Energy sector closed in negative for the third straight session as crude oil prices continued to stay at multi year lows; most of the companies closed in negative while ONGC was one of the two gainers in the sector gaining over 1% due to bargain hunting by investors.

CNX Pharma: Profit taking was seen across the sectors; index opened marginally lower and traded down after rise in previous sessions due to better sales data. All the stocks were seen down among the sector except GlaxoSmithKline. Cadila and Sun Pharma were the major losers. However, gains in rupee limited the downside.

Market Movers

Gainers

HUL: Shares continued to rise after a short profit taking as several brokerages expect the stock to show further upside move in coming sessions.

BHEL: Shares of the company gained as it commissioned its unit in Chhattisgarh and after TN Veearaghavan appointed as director engineering

Losers

SSLT: Shares of metal companies were seen down due to fall in global commodity prices. SSLT was the top loser in today's session down by over 8%.

Hindalco: Metal companies were the worst performers in today's session after the global commodity prices were seen falling. Hindalco was one of them losing over 6%.

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