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WealthRays Securities Source Name: WealthRays Securities

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

Sep 18, 2014   16:25 IST 
India

Synopsis:

Indian indices opened lower tracking mixed cues from Asian markets. US markets closed in positive with Dow closing at all-time highs. Fed maintained its view of data drive decision on interest rate in near future and considerable time for any normalization of policy. This provided strength to equity markets in India. Nifty closed above 8100 levels while Sensex regained 27000 mark. Broad buying was seen on Nifty stocks with capital goods, auto and banks lifting Nifty. Rate sensitive stocks delivered a stellar performance today. While on the downside, Infosys saw profit booking, HUL and United sprits closed in red.

 

Indian Markets:

Indian indices opened lower tracking mixed cues from Asian markets. US markets closed in positive with Dow closing at all-time highs. Fed maintained its view of data drive decision on interest rate in near future and considerable time for any normalization of policy. This provided strength to equity markets in India. Nifty closed above 8100 levels while Sensex regained 27000 mark. Broad buying was seen on Nifty stocks with capital goods, auto and banks lifting Nifty. Rate sensitive stocks delivered a stellar performance today. While on the downside, Infosys saw profit booking, HUL and United sprits closed in red. USDINR opened higher tracking strength from US Dollar; USD Index was trading up by 0.26%. But as the strength in equity markets continued and inflows were sustained Rupee stabilized breaking 61 mark and was trading at 60.91 as equity markets closed.USD was marginally strong against all major currencies. Fed maintained its stance of data driven decision in future.

 

Other Asian Markets:

Chinese housing prices data disappointed markets but SSE closed in positive recovering from lows. Nikkei rallied on low Yen and dovish Fed in US markets .Most Asian currencies were marginally weak against US Dollar. ASX also erased loses and closed in green.

 

Commodity Outlook:

Commodity Market showed lot of volatility in the morning session. Gold and Silver Prices opened with a gap down and remained weak in the morning session due to talks of acceleration of rate hike by the Fed. Strong Equity Markets also kept the focus away from Bullion. Crude Oil Price showed some strength but bearish US supply data kept the upper side limited for Crude Oil. Natural Gas Price was weak in the morning session ahead of US supply data. Base metals also showed lot of weakness in Asian Markets after Chinese Property data. Nickel Prices continued to stay below 1100 as export ban in Philippines continues to get delayed.

 

Evening outlook:

Gold and Silver Prices are expected to remain weak; Crude Oil Prices are expected to dip while Natural Gas Price is also expected to remain cautious ahead of supply data; Base Metals could show strength due to strong Equity Markets.

 

Stock Recommendations:

NMDC – Buy at ` 175.60(CMP); Target -`177.50; Stop Loss –`173.80

Cyient –Buy at `477.30(CMP); Target -`482.00; Stop Loss – `475.00

TATA Steel – Buy at `505.45(CMP); Target -`510.50; Stop Loss – `500.00

 

Sectors Snapshot:

Bank Nifty: Bank Nifty rallied 318 points today as US markets cues were positive and Fed concerns eased. Broad buying was witnessed with all banks registering more than 1.5% gains. PSU Banks closed above 2% with bank of India as top gainer.

CNX Energy: Energy index also opened lower but tracked strength from markets and rallied 1.69%. All stocks advanced on the index. Reliance power and BPCL were top gainers. OMC stocks remained in strong uptrend throughout the session.

CNX Pharma: Pharma index also saw inflows coming in after correction in previous two sessions. All stocks closed in positive with Dr. Reddy gaining 3.60% and Ranbaxy and Sun Pharma recovered holding their gains.

CNX Media: Media index rallied 2.8% outperforming benchmark indices. The rally was fired by Zee Entertainment (+5.4%) and Eros (+4.74%). Zee rallied before its addition to Nifty tomorrow.

India VIX: India VIX fell 4.81% as Fed concerns eased and inflows were sustained in market.

 

Market Movers:

Gainers

Hero Motocorp: Shares of the company were seen up by 5.80% as the company plans to offer stock options to its employees and directors in an effort to retain talent and hire top global executives. The offer of 4.99 mln employee stock options will result in less than 2.5% dilution of the paid-up equity share capital of the company as on Jun 30.

 

Losers

Infosys: The shares of the company were seen down due to profit bookings and opened low in today's session, but later the shares prices were seen recovering as the company extended its partnerships with Microsoft and Hitachi Data Systems and formed a new one with Huawei. The stocks were down by 1.18%.

 

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