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WealthRays Securities Source Name: WealthRays Securities

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

Aug 26, 2014   17:11 IST 
India

Synopsis:

Indian benchmark indices witnessed volatile session today ahead of expiry in the truncated week.  Nifty opened lower below 7900 at 7874 and continued to trade under pressure. Bank and metal stocks dragged Nifty while inflow was seen in defensive FMCG and Pharma. Nifty closed flat at -0.02% while Sensex closed up by +0.02%. Indices recovered in last hour of the trade with Nifty regaining 7900 mark.

Indian Markets:

Indian benchmark indices witnessed volatile session today ahead of expiry in the truncated week. Nifty opened lower below 7900 at 7874 and continued to trade under pressure. Bank and metal stocks dragged Nifty while inflow was seen in defensives FMCG and Pharma. Nifty closed flat at -0.02% while Sensex closed up by +0.02%. Indices recovered in last hour of the trade with Nifty regaining 7900 levels. Rupee opened flat at 60.5650 and continued to remain strong providing support to equity markets. Inflows kept Rupee strong as FII/FPI was net buyer in capital markets in previous session. But the gains were restricted as Dollar remained strong with a pause in rally. USD Index was down 0.04% with major currencies slightly strong against USD. USDINR was trading at 60.50 as the equity markets closed.

Other Asian Markets:

Asian markets were weak today as global tensions escalated in Ukraine. SSE composite lost close to a percent and Japan’s Nikkei also remained weak closing down by 0.60%. Sell off in airline stocks led o the strong negative momentum in Chinese markets.

Commodity Outlook:

Commodity Market was very volatile in the morning session. Gold and Silver prices were strong and made significant gains as the tensions in Ukraine resurfaced and Equity markets started losing steam. Crude Oil prices also showed strength due to the Ukraine tensions. Natural Gas prices were flat but it is expected to pick up momentum due to warm weather forecasts in USA. Base metals were mixed in the morning session. Aluminium was the biggest gainer in the morning mainly due to supply concerns and Copper lost its momentum due to weak Equity markets.

Evening outlook:

Gold and Silver are expected to be strong due to the uncertainty surrounding Ukraine; Crude Oil and Natural Gas are also expected to make gains while Base metals are expected to be mixed

Stock Recommendations:

Emami Ltd.– Buy at ` 669.40(CMP); Target -` 678.00; Stop Loss – 661.00

Reliance Industries Ltd.– Sell at `993.40 (CMP); Target -` 980.00; Stop Loss – `1002.00

Idea Cellular– Sell at `154.25(CMP); Target - ` 151.00; Stop Loss – `156.00

Sectors Snapshot:

Bank Nifty: Bank Nifty opened lower dragging the benchmark and continued to trade under pressure after recovering in last hour of the trade to close down by 0.29%. Kotak bank was top gainer on the index while Yes bank was top loser. Bank Nifty sustained 15600 levels.

CNX Energy: Energy index remained weak today as Oil price inched up higher, global tensions escalated. Reliance power was top loser today while OMCs closed flat to negative.

CNX Pharma: Defensives gained momentum today as cyclical stocks were weak. Major stocks rallied in today’s session. Cipla and Glen Pharma were top gainers on the index.

CNX Media: Media index also recovered from day’s lows. All constituents erased most of the losses. HT media lost 2.77% while Eros Media was top gainer at 1.95%.

India VIX: Volatility inched up higher as markets traded with negative bias. VIX rose by 0.83%.

Market Movers:

Gainers

Hindalco: After a 9% fall in yesterday's session the stock was the top performer as buying was seen at lower levels, the stock opened 6 points down from the previous close tacking weak sentiments due to Supreme court verdict. The stock gained 3.43% to close at 170.5.

Losers

JSPL: Tracking the weak sentiments from yesterday's session selling continued in today's session also. The stock was the worst performer in Nifty for past two sessions. It also hit six month low of 233 and is expected to remain flat till next decision by SC.

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