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

Synopsis:

Indian benchmark indices again closed at all-time highs. Nifty closed at 8083.05 gaining 55 points. Sensex crossed 27000 levels and closed at 27019.39.  The strong move on Nifty was supported by all sectors. Jindal steel was the top loser amid coal block allocation controversy. Cement and pharma stocks lifted Nifty. European markets also opened higher supporting the positive sentiment. Asian registered gains with Nikkei gaining 1.24%.

Auto stocks saw profit booking at higher levels after the sales data released yesterday. Advance decline ratio on Nifty was at 34 to 15.

Indian Markets:

Indian benchmark indices again closed at all-time highs. Nifty closed at 8083.05 gaining 55 points. Sensex crossed 27000 levels and closed at 27019.39. The strong move on Nifty was supported by all sectors. Jindal steel was the top loser amid coal block allocation controversy. Cement and pharma stocks lifted Nifty. European markets also opened higher supporting the positive sentiment. Asian registered gains with Nikkei gaining 1.24%. Auto stocks saw profit booking at higher levels after the sales data released yesterday. Advance decline ratio on Nifty was at 34 to 15. USDINR opened higher today tracking strength in Dollar amid geopolitical tensions. It touched intraday high at 60.6750 but showed strength as better CAD data weighed. Equity markets also supported currency with inflows continuing. USD was flat to strong in most of the Asian currencies. Rupee is seen facing resistance at 60.50. USD Index was up 0.26%. Holiday in US yesterday also limited the Dollar supply , ahead of CPI data Rupee is expected to trade in a narrow range.

Other Asian Markets:

Asian Indices registered gains. Nikkei gained 1.24% on weak yen as export firms gained. Markets closed with gains ahead of European central bank meeting on Thursday along with geopolitical tension in focus. Hang Sheng index recovered from day’s lows closing flat at -0.01%.

Commodity Outlook:

Commodity Market showed moderate volatility in the morning session. Gold and Silver showed lot of weakness on the downside despite Ukraine tensions as Equity Markets were strong and dollar showed lot of strength. Crude Oil prices also remained weak due to supply concerns & sluggish demand and Natural Gas prices were flat during the morning session. Base Metals remained flat in the morning session. They could receive support from strong Global Equity Markets; hence their downside could be limited.

Evening outlook:

Gold and Silver Prices are expected to have downside risk as Equity Markets could continue to be strong; Crude Oil is expected to be range bound while Natural Gas is expected to make some gains; Base metals are expected to be flat.

Stock Recommendations:

DLF– Buy at ` 184.05(CMP); Target -` 188.00; Stop Loss – `181.00

Yes Bank– Buy at `608.60 (CMP); Target -` 615.00; Stop Loss – `604.00

BHEL– Sell at `240.30(CMP); Target - `236.00; Stop Loss – `243.00

Sectors Snapshot:

Bank Nifty: Bank Nifty rallied again gaining 117.75 points. The strength was seen as a result of better CAD data. Few banks lifted the index up. HDFC bank was top gainer while Canara Bank and PNB witnessed profit booking.

CNX Energy: Energy stocks also gained as crude prices fell. OMCs were up after diesel price hike with exception of BPCL which remained under pressure. IOCL was the top gainer on the index.

CNX Pharma: Pharma index opened higher. Large caps pharma stocks Cipla, Sun pharma and Lupin provided support to Nifty. Cipla was top gainer rising 5.27% after its launch of anti asthma inhaler.

CNX Media: Media index showed strong momentum in early hours of the trade, but gave up gains closing mildly positive. Major stocks like Zee Entertainment and Sun TV saw profit booking at higher levels and closed flat to negative.

India VIX: India VIX fell 0.61% as equity markets held gains

Market Movers:

Gainers

Cipla: Shares of the company hit a lifetime high Rs. 575 as the company launched an anti-asthma inhaler in Germany and Sweden. It was the best performer among the Nifty Constituents gaining 5.27% to close at 557.05.

Losers

JSPL: The shares of the company needed down and was the worst performer on account of profit booking after gaining 6% in the previous session. Also metals sector was down as coal ministry asked the allocattees of coal block to furnish the status on the development.

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