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

“Indian equity market sentiments were lifted by the BJP victory in Haryana and majority in Maharashtra. Also, series of steps taken by govt. like diesel de regulation, hike in gas price and diesel prices cut amid weak global oil prices lifted the sentiment on D- Street. OMC stocks lifted the benchmark Nifty. Banking stocks were also positive today with Axis Bank rallying post stable Q2 earnings. IT stocks were weak in the session and weighed on the Index. Major IT stocks showed negative momentum. Strong recovery on Wall Street on Friday also provided support to Indian indices. Nifty opened higher by 120 points higher and closed above 7850 at 7879.40”, Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian equity market sentiments were lifted by the BJP victory in Haryana and majority in Maharashtra. Also, series of steps taken by govt. like diesel de regulation, hike in gas price and diesel prices cut amid weak global oil prices lifted the sentiment on D- Street. OMC stocks lifted the benchmark Nifty. Banking stocks were also positive today with Axis Bank rallying post stable Q2 earnings. IT stocks were weak in the session and weighed on the Index. Major IT stocks showed negative momentum. Strong recovery on Wall Street on Friday also provided support to Indian indices. Nifty opened higher by 120 points higher and closed above 7850 at 7879.40.

USDINR opened lower as Indian markets gained after series of steps by Indian govt. Diesel de regulation presents a view that Govt. subsidy burden may reduce leading to better fiscal conditions in future.  USDINR pair opened lower by 24 paisa and traded in a range of 10 paisa. USD Index was up 0.15% suggesting strength in greenback against major world currencies. Asian currencies were mostly strong against USD. US Fed decision on 29^th Sept. remained in focus for further cues to USD. Rupee is expected to trade with caution and hold 61.00 mark ahead of US Fed policy meet in coming week.

Other Asian Markets

Strong recovery on Wall Street on Friday boosted Asian indices with Nikkei rallying 3.98% and Chinese markets also closing in green. Weak Yen helped Nikkei to rally nearly 4%. SSE closed higher by 0.66% ahead of GDP data to be released tomorrow.  Amid quarterly earnings KOSPI closed 1.55% higher.

Commodity Outlook:

Commodity Market showed good volatility in the morning session. Gold and Silver Prices were up in the morning session as Economic growth fears remained and Equity Markets were up and down. Crude Oil Prices continued to fall due to global supply concerns and Natural Gas Prices remained at lower levels due to warm temperature forecasts in the short term in USA. Base metals continued to be weak in the morning session as growth concerns remain globally and demand continued to be weak for Base Metals

Evening outlook:

Gold and Silver Prices could be range bound in the Evening session; Crude Oil Prices are expected to weak while Natural Gas Prices could rise on bargain hunting; Base Metals could continue to slide in the Evening session

Stock Recommendations:

Kotak Mahindra Bank– Buy at Rs.1003.85(CMP); Target - Rs.1015.00; Stop Loss – Rs.993.00

Asian Paints– Buy at Rs.647.60(CMP); Target - Rs.654.00; Stop Loss – Rs.641.00

HDFC Bank – Buy at Rs.893.80(CMP); Target - Rs.903.00; Stop Loss – Rs.885.00

Sectors Snapshot

Bank Nifty: Bank Nifty rallied today as sentiment remained strong on D-Street after BJP majority in state elections. Banks rallied today with Axis Bank gaining close to 4% after stable Q2 earnings. The overall breadth was positive on banking stocks today. Bank Nifty closed above 16200 gaining   286.60 points.

CNX Energy: Energy index was lifted by OMC and oil stocks after deregulation of diesel by govt. and hike in gas prices. Reliance gave up marginal gains it made in early session and closed in red, while ONGC (+5.51%) was top gainer on index.

CNX Pharma: Pharma Index also witnessed inflows with majors like Lupin (+2.94%), Cipla (+1.45%) rallying. The breadth was positive eon the index. Buying was seen at intraday lower levels of the index.

CNX Media: Media index also rallied 1.1%. the overall breadth was mixed on index with majors such as Zee and Sun TV lifting the index.

India VIX: India VIX lost 13.48% as fears eased in markets and Nifty rallied.

Market Movers

Gainers

Ultratech Cement: Shares of the company were seen gaining in today’s session after 6% fall in past two sessions on account of robust Q2 earnings. The company reported a 48.39% jump in its net profit at 4.14 billion rupees. Operating margins were seen improving coupled with increase in sales. The shares surged 5.72% to close at 2450.25.

Losers

JSPL: The shares were the top losers among Nifty constituents after CBI filed FIR against the company regarding allocation of Gare Palma coal block. Allegations were charged on the company regarding involvement in irregular mining practices and covering areas beyond the permitted area. Shares prices fell by 8.23% to close at 135.50.

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