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

Nifty reclaims 8500; Infra and Pharma lead; December trade deficit down

“Equity markets continued its up move though remaining in negative territory for first half of the session. Surprise rate cut by RBI helped markets to sustain gains with Nifty closing above 8500. Banking stocks saw profit booking today after yesterday’s spike while IT also lost momentum and saw selling after TCS Q3 results. Q3 earnings remained on focus on Daalal Street. Globally equity markets remained subdued with major Asian indices weakening. European markets were also down after Swiss central banks surprise move. Base metal prices moved higher lifted metal stocks after recent selloff in the sector. Pharma sector resumed its inflows after mixed session yesterday. Large caps lifted the index. Rupee hovered near 62 mark facing resistance at those levels ahead of US Fed policy. The positive momentum in markets was seen as trade deficit data released yesterday showed that non oil imports fell.  ”, Mr. Kiran Kumar Kavikondala said.

Indian Markets

 Equity markets continued its up move though remaining in negative territory for first half of the session. Surprise rate cut by RBI helped markets to sustain gains with Nifty closing above 8500. Banking stocks saw profit booking today after yesterday’s spike while IT also lost momentum and saw selling after TCS Q3 results. Q3 earnings remained on focus on Daalal Street. Globally equity markets remained subdued with major Asian indices weakening. European markets were also down after Swiss central banks surprise move. Base metal prices moved higher lifted metal stocks after recent selloff in the sector. Pharma sector resumed its inflows after mixed session yesterday. Large caps lifted the index. Rupee hovered near 62 mark facing resistance at those levels ahead of US Fed policy. The positive momentum in markets was seen as trade deficit data released yesterday showed that non oil imports fell.

Other Asian Markets

Asian market weakened after Swiss central bank move to abandon the cap on Swiss franc against Euro. Weak close on Wall Street kept the market sentiment negative weighing on major indices.SSE gained after rebound in base metal prices was seen.

Commodity Outlook:

Commodity Market was very flat in the morning session. Gold and silver look fundamentally strong but traded cautiously as fears of profit taking prevailed. Crude Oil made modest gains in the morning session due to technical buying while Natural Gas Prices dipped in the morning session due to profit taking. Base Metals made gains in the morning session on hopes of easing in China.

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 positively while Base Metals could also make gains in the Evening session.

Stock Recommendations:

Lupin - Sell at Rs.1428.05(CMP); Target -Rs.1413.00; Stop Loss –Rs.1443.00

Axis Bank - Buy at Rs.514.8(CMP); Target -Rs.520.00; Stop Loss –Rs.510.00

Wipro - Buy at Rs.555.05(CMP); Target -Rs.561.00; Stop Loss –Rs.550.00

Sectors Snapshot

Bank Nifty: Trade deficit for month of December came in at $9.43 billion falling on back of weak global oil prices and also fall in non oil imports. The sentiment was lifted by this data and after RBI rate cut losses were capped on banks Though Q3 results and UDS Fed policy later this month kept investors cautious triggering profit taking today.

CNX IT: The momentum on IT stocks remained mixed today. The sector gained in previous session but TCS results kept the stocks under pressure. Rupee remained stable and global weakness weighed on IT stocks. Few major stocks like HCL gained lifting the index.

CNX Energy: Energy sector gained around 50 points in the session today as crude oil prices continued to rebound today; most of the companies in the sector closed in positive while Power Grid was the biggest gainer in the sector for second straight day gaining over 3%.

CNX Pharma: Index opened higher and showed positive sentiments as trade in benchmark indices remained weak at first half of the session and inflows were seen in pharma space. Rise in rupee capped the upside. Lupin was the only loser amongst the index while others traded in positive.

Market Movers

Gainers

Zee Entertainment: Share prices rose as FII's stakes was seen rising in the counter for the month of December from 50.8% to 51.9%.

Power Grid Corp: Positive sentiments continued in the stock after yesterday's rally. Stock was one of the top gainer amongst Nifty gaining over 3%.

Losers

PNB: Shares of banking stocks were seen down due to profit taking after rally in previous session due to rate cut by RBI.

Hindalco: Shares were seen trading weak after govt issued fresh notice to the company asking reason for delays in mines development.

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