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

Synopsis:

Markets opened higher today drawing optimism from the Wall Street. Nifty opened higher by 28 points and continued to move higher till 7946.85. Benchmark indices remained under pressure in the expiry week and ahead of GDP numbers. European markets were under pressure, FTSE mildly up as Ukraine issue was on focus. Asian markets also closed with mild gains providing no further trigger for Indian Markets. Jindal Steel recovered 3.21% after the recent sell off.

Indian Markets:

Markets opened higher today drawing optimism from the Wall Street. Nifty opened higher by 28 points and continued to move higher till 7946.85. Benchmark indices remained under pressure in the expiry week and ahead of GDP numbers. European markets were under pressure, FTSE mildly up as Ukraine issue was on focus. Asian markets also closed with mild gains providing no further trigger for Indian Markets. Jindal Steel recovered 3.21% after the recent sell off. Rupee opened higher but continued to gain as Euro picked up and major Asian currencies were mildly strong against USD. Rupee touched intraday low at 60.50 and resisted 60.39 mark remaining in a narrow range of 11 paisa. USD index was down 0.15%. Inflows in capital markets were positive in previous session but as equity markets fluctuated Rupee remained in a range. CAD numbers to released going forward also kept Rupee in a narrow range.

Other Asian Markets

Asian stocks remained with mild gains as US markets touched record high in previous session. Australian index touched six year high. Asian currencies mostly remained strong against USD, Hang Sheng lost 0.62% while Nikkei and SSE gained close to 0.1%.

Commodity Outlook:

Commodity Market traded with moderate volatility in the morning session. Gold and Silver Prices showed some strength due to uncertainty surrounding Ukraine and fluctuating Equity markets. Crude Oil traded cautiously ahead of US supply data and Natural Gas continued to make gains due to warm weather forecasts in USA. Base Metals were mixed in the morning session. Aluminium Prices continued to be strong due to Aerospace demand in USA while other Base metals showed weakness

Evening outlook:

Gold and Silver Prices are expected to have some downside risk in the Evening session; Crude Oil is expected to be cautious while Natural Gas could make gains; Base metals could be steady with limited downside.

Stock Recommendations:

Excel Crop Care Ltd. – Buy at ` 960.25(CMP); Target -` 985; Stop Loss – `945.00

Infosys Ltd.– Sell at `3630.55 (CMP); Target -` 3590.00; Stop Loss – `3660.00

IndusInd Bank– Buy at `577.40(CMP); Target - ` 585.00; Stop Loss – `573.00

Sectors Snapshot:

Bank Nifty: Bank Nifty closed higher by 0.6% today after opening higher by about 120 points. The session was flat in a range. Federal Bank was the top gainer on bank Nifty gaining 3.82%. ICICI Bank and INDUSIND Bank logged in gains close to 2%. Kotak bank saw some profit booking after the recent run up.

CNX Energy: Energy index opened higher but touched lows during intraday and again gained in last hour of the trade to close at opening point. The up move was supported by ONGC and BPCL.

CNX Pharma: Pharma index opened higher but closed near lows of the day. Piramal lost 2.7% while Cadila also saw profit booking. Dr. Reddy’s Lab was top gainer with 1.15%.

CNX Media: Media Index lost momentum opening higher and closed at low point of the day. Media stocks closed mostly flat to negative with exception of Network 18 (+4.93%) on the index.

India VIX: Volatility fell on the index as markets moved higher. India VIX fell by 6.04%.

Market Movers:

Gainers

JSPL: The shares of the company were seen up today after a fall of more than 20% in past two sessions due to Supreme Court’s verdict on the coal block allegation. The stock rebounded in today’s session due to buying at lower levels and was the top performer among the Nifty constituents to close at 244.2.

Losers

DLF: It was the worst performer in Nifty as the allegation charged on them on abuse of the dominant position in Gurgaon; Supreme Court ordered them to submit a fine of 630Crs. in 3 months time. The investors were cautious ahead of the news and were down to close at 182.90.

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