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

Nifty fails to reclaim 8800; banks and auto drag

“Indian benchmark indices witnessed selling in late hours of the session after remaining weak during the day. Nifty was weak as rate sensitives such as banking, auto and infra stocks dragged the index. The selling was seen in banks as investors turned cautious ahead of Union Budget. On global front Greek debt situation was eyed by investors. Though markets took positive cues from Wall Street and opened higher but could not sustain momentum. Weak Q3 results by banks were major cause of worry for investors. Metal stocks rallied after spike in base metal prices and as more stimulus was expected for China. Weak PMI services data in China though weighed on Chinese indices. Spike in global oil price kept energy stock buoyant with ONGC and Cairn India supporting the index. ” , Mr. Kiran Kumar Kavikondala said.

Other Asian Markets

Asian indices were mostly higher today tracking strength from Wall Street. Spike in global oil prices lifted energy stocks worldwide. Possible Greek debt deal kept European markets higher yesterday and provided positive sentiment. Anticipation of Chinese stimulus also was eyed by investors.

Commodity Outlook:

Commodity Market was moderately volatile in the morning session; Gold and Silver Prices remain range bound in the morning session as Greece plan and strong dollar favoured Equity Markets; Crude Oil traded under pressure in the morning session on profit taking while Natural Gas also looked weak on uncertain weather in USA; Base Metals traded weak in the morning session as supply concerns and weak demand weighed on their prices.

Evening outlook:

Gold and Silver Prices are expected to slip in the Evening session; Crude Oil and Natural Gas could trade positively while Base Metals are expected to remain weak in the Evening session.

Currency

Indian Rupee remained weak against the greenback as equity markets continued to show weakness. FII inflows were negative in previous session keeping upside limited for Rupee against USD. USD Index saw weakness yesterday which restricted upside on USDINR pair today. Inflows were seen into commodities and oil which kept USD under pressure. US treasury yields spiked as market participants anticipated a Greek debt deal. Major cues affecting USDINR are Union budget, possible Chinese stimulus.

Stock Recommendations:

Dabur - Buy at Rs.267.65(CMP); Target -Rs.270.50; Stop Loss –Rs.264.50

Tata Steel - Sell at Rs.389.20(CMP); Target -Rs.385.00; Stop Loss –Rs.393.00P

Tata Power – Sell at Rs.90.10(CMP); Target -Rs.89.00; Stop Loss –Rs.91.00

Sectors Snapshot

Bank Nifty: Weak Q3 results by banking stocks kept the banking index under pressure today with selling continuing on PSB and private banks. Canara bank bucked the trend as asset quality remained weak but margins remained flat. Greek debt talks and upcoming Indian Union budget kept market participants cautious.

CNX IT: IT index again remained subdued and failed show strong movement. Weak across market kept investors cautious restricting inflows in IT. Major IT stocks remained weak on profit booking. Though mid cap saw inflows supporting the index.

CNX Energy: Energy sector closed flat in the session today gaining over just 10 points in the session today; ONGC and Cairn India gained in the session today on higher crude oil prices while other stocks in the sector traded from flat to negative.

CNX Pharma: Index opened higher and traded with positive sentiments after fall in three straight sessions. Slight weakness in rupee also supported the index. Aurobindo Pharma was down ahead of results while Sun Pharma continued to rise upon the merger nod by US trade body. Glenmark Pharma was the top gainer rising over 3%.

Market Movers

Gainers

Hindalco: Shares rose after news that the government has received 176 technical bids for the auction of coal blocks for private sector.

Cairn India: Shares rose tracking gains in crude oil prices and improvement in outlook on news of decline in oil production rigs.

Losers

Axis Bank: Shares were down due to profit taking after it rose over 14% since the co. posted robust Q3 earnings.

BHEL: Shares were among the top losers in today's session due to profit taking. Shares fell over 4%.

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