Latest News
WealthRays Securities

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

Sep 05, 2014   17:05 IST 
India

Synopsis:

Indian benchmark indices opened flat with Nifty claiming 8100 levels in early hours of the trade. Indices gave up gains tracking weak global cues and on account of profit booking. Nifty touched intraday low at 8049.00 and fluctuated in range a 45 point range. United spirits, major banking stocks ICICI, HDFC along with PSU BHEL and Coal India dragged Nifty below 8100 levels. Some recovery in DLF and Jindal steel provided support to Nifty. European markets traded in negative. US pre-market indices also were in negative providing no support to benchmark indices.

Nifty closed below 8100 while Sensex held 27000.

Indian Markets:

Indian benchmark indices opened flat with Nifty claiming 8100 levels in early hours of the trade. Indices gave up gains tracking weak global cues and on account of profit booking. Nifty touched intraday low at 8049.00 and fluctuated in a 45 point range. United spirits, major banking stocks ICICI, HDFC along with PSU BHEL and Coal India dragged Nifty below 8100 levels. Some recovery in DLF and Jindal steel provided support to Nifty. European markets traded in negative. US pre market indices also were in negative providing no support to benchmark indices. Nifty closed below 8100 while Sensex held 27000. USDINR opened flat at 60.35 and continued to remain strong in the session and faced a resistance at 60.51. USD index was slightly in negative giving up gains with Dollar remaining flat. Rupee was in a narrow range for second consecutive session. Weakness in equity markets also weighed on Rupee. Major Asian currencies were slightly strong against USD. Further direction in USD, its effect on Rupee and trend in equity markets will be indicated after the US jobs data to be released today.

Other Asian Markets:

Asian shares were down today after the surprise rate cut by ECB. Asian markets traded cautiously waiting for cues from US markets ahead of the crucial US nonfarm payrolls data to be released today. Nikkei gave up gains and closed slightly negative while SSE extended its rally and closed 0.85% up.

Commodity Outlook:

Commodity Market was very flat in the morning session. Gold and silver were range bound but showed a lot of weakness on the downside as US jobs data is awaited and dollar continued to show strength. Crude Oil Prices showed strength despite bearish US supply data which could have been due to Investor sentiment and Natural Gas Prices remained flat in the morning session. Base Metals were range bound as Investors await US jobs data. Nickel Prices continued to show strength on fears of Philippines export curbs

Evening outlook:

Gold and silver is expected to show weakness; Crude Oil and Natural Gas Prices are expected to be range bound while Base metals could make gains if US jobs data comes out positive.

Stock Recommendations:

ICICI Bank– Sell at ` 1547.05(CMP); Target -` 1530.00; Stop Loss – `1560.00

Reliance Communications– Sell at `111.35 (CMP); Target -` 108.00; Stop Loss – `113.00

Eid Parry– Buy at `223.75(CMP); Target - `227.00; Stop Loss – `221.00

Sectors Snapshot:

Bank Nifty: Bank Nifty traded with a negative bias today breaking 16000 levels and taking support at 15900. Stocks were mixed with few stocks supporting the index. Bank of India was top loser down 1.85% and Private major ICICI bank down by 1.57%. Kotak Mahindra rallied 1.86%.

CNX Energy: Energy index opened flat and gave up gains at higher levels. BPCL and TATA power dragged the index. BPCL lost 1.72%, while strength in ONGC supported the index. ONGC closed higher by 1.38%.

CNX Pharma: Pharma index recovered from lows and closed in green. Major stocks like Ranbaxy, Sun pharma were in negative while Divi’s lab closed higher by 2.47%

CNX Media: media Index closed down by 0.56%. Most stocks traded negatively with exception of HT (up 3.15%).Eros, Zee were top losers. Zee Entertainment and Sun TV kept the index under pressure.

India VIX: India VIX fell by -1.09% as markets remained in a range.

Market Movers:

Gainers

NMDC: The share prices were seen up as the company’s top official will meet Japan Steel Mills official as the part of its customer meetings. Some top officials from the ministries of steel and mining will also join the delegation on its visit to Japan that begins Saturday. The share prices were seen up by 5.27%.

Losers

United Spirits: Shares of the company were seen down as the company posted a net loss of 53.8 billion rupees for Jan-Mar which was far below expectation. The shares were down by 4.57% to close at 2283.15. It was the worst performer among the Nifty constituents.

For more information and tables Click Here


 
 
For press background on WealthRays Securities

click here