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

“Indian markets opened higher in today’s session after tracking positive cues from US markets which was backed by better financial estimates of the companies. Nifty was seen opening 49.8 points above the previous close and failed to keep the gains and ended below 8000 marks to close at 7991.70. Nifty was dragged by DLF and JSPL who were major losers among the index falling near 8% each, while HUL results were seen slightly below the estimates. However, Banks supported the index and the fall was limited. Weak European markets supported the fall in domestic markets. India Bulls results were seen better than expectation and stock rallied 5%. Investors are cautious ahead of Bharti Infratel results which are due today and fell 3%.”, Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian markets opened higher in today’s session after tracking positive cues from US markets which was backed by better financial estimates of the companies. Nifty was seen opening 49.8 points above the previous close and failed to keep the gains and ended below 8000 marks to close at 7991.70. Nifty was dragged by DLF and JSPL who were major losers among the index falling near 8% each, while HUL results were seen slightly below the estimates. However, Banks supported the index and the fall was limited. Weak European markets supported the fall in domestic markets. India Bulls results were seen better than expectation and stock rallied 5%. Investors are cautious ahead of Bharti Infratel results which are due today and fell 3%.

USD/INR opened 10.3 paisa higher than previous close tracking positive cues from US markets. However, due to fall in domestic indices rupee was seen falling and was trading in range of 13 paisa. Most of the Asian currencies were seen strong and USD index was down by 0.21%. Traders are cautious ahead of the US Fed meet due on Tuesday. Rupee was seen trading at its days high at 61.31 when equity markets ended.

Other Asian Markets

Asian markets were seen mixed after positive cues from US markets and weak cues from European markets. Nikkei rose as the yen hit a near three week low against dollar. Hang Seng fell by 0.68% to close at 23143.23, while KOSPI was seen up trading flat and closed 0.33% up. SSE Composite fell by 0.52% to close at 2290.437.

Commodity Outlook:

Commodity Market traded flat in the morning session. Gold and Silver Prices remained weak in the morning session as Equity Markets remained strong and the focus shifted away from Bullion. Crude Oil continued to fall after Saudi withdrew rumors of supply cut while Natural Gas Prices remained steady probably due to bargain hunting at lower levels. Base metals showed strength in the morning session as strong Equity Markets provided good support.

Evening outlook:

Gold and Silver Prices are expected to remain weak in the Evening session; Crude Oil is expected to dip while Natural Gas could trade flat; Base Metals are expected to remain steady in the Evening session.

Stock Recommendations:

HUL – Sell at Rs.720.45(CMP); Target - Rs.712.00; Stop Loss – Rs.728.00

Lupin – Buy at Rs.1393.25(CMP); Target - Rs.1408.00; Stop Loss – Rs.1380.00

Bank of Baroda– Buy at Rs.905.65(CMP); Target - Rs.915.00; Stop Loss – Rs.896.00

Sectors Snapshot

Bank Nifty: Bank Nifty opened higher tracking positive cues from US markets. Q2 earnings of private banks are estimated to be good which is supporting Bank Nifty. Yes Bank was the top gainer among Banks gaining more than 3.50%.

CNX Energy: Energy index was seen opening higher but erased its gains by falling more than 1%. It was dragged down by Cairn India (-4.05%), Indian Oil Corp (-3.00%) and ONGC falling by 2.18% as fall in crude prices.

CNX Pharma: Pharma index erased its profits but stayed positive and traded flat. Piramal enterprise was the top gainer amongst the index after giving revised statement to the exchange gaining 6.98%.

CNX Media: Media index also opened higher but fell by 1.49% led by KSS Ltd and Den Networks both falling more than 5%, while Jagran Prakashan was the top gainer amongst the index gaining 2.02%.

India VIX: India VIX was up by 5.07% as the markets were seen weak.

Market Movers

Gainers

BHEL: Shares of the company were seen up by 5.1% to close at 252.65 after a fall in previous session tracking positive cues from US markets and opened higher at 248 levels. Stock was the top gainer among the Nifty constituents in today’s session.

Losers

JSPL: Shares of the company were down by 7.99% to close at 152.55 on a report that the CBI has registered a preliminary enquiry on some of the company officials for alleged diversion of forest land in Jharkhand for mining. The CBI had also filed a FIR against the company regarding allocation of Gare Palma coal block allocation.

For more information and tables Click Here