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WealthRays Securities

Source Name: WealthRays Securities

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

Oct 01, 2014   18:20 IST 
India

Synopsis:

Indian equity markets remained flat today with a negative bias as HSBC PMI flash for manufacturing which came in at 51.0 disappointed markets. Nifty closed near lows of the day at 7945.55 breaching 7950 mark. IT companies gained today as Rupee remained at elevated levels. IT majors support the benchmark Nifty while power, metal stocks dragged Nifty. Global markets were also weak with European markets trading in red and US index futures trading in negative in pre-market. Hong Kong tension kept Asian markets under pressure. October series on Nifty started off with caution.

 

Indian Markets

Indian equity markets remained flat today with a negative bias as HSBC PMI flash for manufacturing which came in at 51.0 disappointed markets. Nifty closed near lows of the day at 7945.55 breaching 7950 mark. IT companies gained today as Rupee remained at elevated levels. IT majors support the benchmark Nifty while power, metal stocks dragged Nifty. Global markets were also weak with European markets trading in red and US index futures trading in negative in pre-market. Hong Kong tension kept Asian markets under pressure. October series on Nifty started off with caution. USDINR pair opened higher today but continued to erase gains as month demand for Dollar from importers eased. Rupee took a strong support near 61.94 levels and was near intraday lows at 61.72 as equity markets closed. Indian currency could not log gains as equity markets remained under pressure. Most Asian currencies were weak against USD amid Hong Kong protests. USD continued to rally touching 4 year high. USD index was trading at 86.04 up by 0.12% suggesting strength in greenback against major world currencies.

 

Other Asian Markets

Protest in Hong Kong kept Asian indices under pressure. Chinese PMI for Sept remained unchanged at 51.1 providing no strong cues of revival. Nikkei also witnessed selling even after improving business sentiment survey outcomes. HSI lost 1.28% while SSE closed in green at +0.26%.

 

Commodity Outlook:

Commodity Market showed good volatility in the morning session. Gold and Silver Prices continued to slip further due to sluggish demand and lack of fund inflows. Crude Oil was weak ahead of US supply data and ample global supply. Natural Gas dipped slightly in the morning session which could have been mainly due to profit taking by investors after significant gains in the week. Base Metals also traded lower in the morning session after weak Indian PMI data. Nickel Price was seen at its year low in the morning session while Copper prices were also weak.

 

Evening outlook:

Gold and Silver are expected to trade low in the evening session; Crude Oil is expected to be flat as Investors could be cautious ahead of US supply data while Natural Gas is also expected to be range bound; Base Metals are expected to be weak in the evening session.

 

Stock Recommendations:

Axis Bank – Buy at Rs.379.95(CMP); Target - Rs.384.00; Stop Loss – Rs.376.00

Asian Paints –Buy at Rs.631.70(CMP); Target - Rs.638.00; Stop Loss – Rs.625.50

Ambuja Cements – Sell at Rs.210.65(CMP); Target - Rs.208.50; Stop Loss – Rs.212.75

 

Sectors Snapshot:

Bank Nifty: Bank Nifty was weak today after PMI data with bank Nifty losing 76.05 in a lack luster session. Most banks traded in negative with IndusInd bank losing 3.17%. Bank of India and Canara bank closed in green recovering slightly from recent correction.

CNX Energy: Energy stocks closed in deep red with the index losing 1.45%. Selling was seen in OMCs after diesel and petrol price cut. Lower global Brent prices kept ONGC and Reliance under pressure. Cairn India and GAIL lost close to 2.5% today.

CNX Pharma: Defensives witnessed mild outflow with index closing down by 0.47%. Sun Pharma only closed in green on the index while all stocks saw profit booking. Glen Pharma was top loser on the index.

CNX Media: Media index was flat after rally in previous session suggesting consolidation. Most stocks were flat and mixed while Network 18 dragged the index by losing 2.34%. Den Network (-5.12%) was top loser on the index.

India VIX: India VIX lost 1.1% as market consolidated and Nifty closed near 7950 mark.

 

Market Movers:

Gainers

Wipro: Shares of the IT companies were seen up on expectation of positive result for Jul-Sep quarter. Also with rupee softening in today's session helped IT sector which was up by 1.92%. Wipro was the top gainer amongst the sector and Nifty constituents. The shares were up by 3.18% to close at 615.75.

Losers

IndusInd Bank: Tracking the weak cues from Nifty, bank nifty was also seen trading weak as investors are cautious ahead of the holidays. Banks were seen weak after the RBI's neutral stance on the key policy rates. IndusInd was the major loser amongst all. The shares were down by 3.17% to close at 601.85.

 

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