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

Nifty ends at 8000: Ranbaxy runs up, Lupin pins down

“Nifty opened 10 points above from the previous close lacking cues from global markets and traded in a narrow range ahead of the US Fed meets to be held today. Nifty gained momentum in afternoon session after Ranbaxy posted its Q2 results and rallied 7% supported by Sun Pharma. Nifty was supported by banking stocks such as SBI and ICICI bank gaining 2.27% and 1.79% respectively closing above 8000 levels at 8027.6. Lupin posted below estimate earnings becoming the top loser among the Nifty constituents. Nifty was also supported by strong European markets which were trading in green.”, Mr. Kiran Kumar Kavikondala said.

Indian Markets

Nifty opened 10 points above from the previous close lacking cues from global markets and traded in a narrow range ahead of the US Fed meets to be held today. Nifty gained momentum in afternoon session after Ranbaxy posted its Q2 results and rallied 7% supported by Sun Pharma. Nifty was supported by banking stocks such as SBI and ICICI bank gaining 2.27% and 1.79% respectively closing above 8000 levels at 8027.6. Lupin posted below estimate earnings becoming the top loser among the Nifty constituents. Nifty was also supported by strong European markets which were trading in green. 

USD INR pair opened unchanged lacking any overseas cues and traded in 10 paisa range. As the domestic market was seen flat, rupee was seen losing in early session but recovered in afternoon session as the indices saw some gain. USD index is seen strong and was up by 0.20%, while most of the Asian currencies were strong. Investors are seen cautious ahead of US Fed meet to be held today.

Other Asian Markets

Asian index was seen mixed ahead of US Fed meet. SSE Composite was up by 2.07% after strong September industrial profits data. NIKKEI was down by 0.38% to close at 15329.91 while Hang Send rose by 1.63% to close in green. KOSPI slipped by 0.33% after tracking weakness in Asian markets and weak consumer data supported the fall.

Commodity Outlook:

Commodity Market traded flat in the morning session. Gold and Silver Prices showed weakness in the morning session as Equity Markets showed strength and focus remain on Equities. Crude Oil Prices were down on supply concerns and Natural Gas Prices were also down due to mild temperature forecasts in USA. Positive bias continued in Base Metals as Equity Markets lent solid support.

Evening outlook:

Gold and Silver are expected to stay weak in the Evening session; Crude Oil and Natural Gas Prices could dip and Base metals are expected to remain steady.

Stock Recommendations:

ICICI Bank – Buy at Rs.1601.25(CMP); Target - Rs.1620.00; Stop Loss – Rs.1590.00

BPCL – Buy at Rs.701.85(CMP); Target - Rs.710.00; Stop Loss – Rs.694.00

IOCL – Buy at Rs.356.9(CMP); Target - Rs.361.00; Stop Loss – Rs.353.00

Sectors Snapshot

Bank Nifty: Bank Nifty was seen trading in positive note in today’s session after ICICI Bank and SBI gaining 2.27% and 1.79% respectively. It was supported by Bank of Baroda gaining 1.55% while PNB was the major loser.

CNX Energy: Energy index was marginally seen up as crude prices are seen falling giving boost to BPCL and IOCL, while Reliance industries and ONGC were seen down. Index was also supported by gains in Tata Power.

CNX Pharma: Index was up by 1.35% due to strong results posted by Ranbaxy which rallied 7% after the results. Index was supported by Sun pharma after Ranbaxy’s results were posted as the company would be soon the owner of Ranbaxy.

CNX Media: Media traded up supported by Network 18 which was up by 4.33% followed by TV18 which was up by 2.12%. EROS limited the upside and fell by 2.89%.

India VIX: India VIX was down by 1.42% after markets showed some momentum.

Market Movers

Gainers

Sun Pharma: Shares of the company were seen up by 4.15% to close at838.65 after Ranbaxy posted robust Q2 results and rallied 7%. Sun Pharma was seen moving up as the company is expected to become the owner of Ranbaxy soon.

Losers

Lupin: Shares of Lupin was down after company posted their Q2 earnings which were below the estimates. Its net profit was seen at 4.59 billion rupees against the expectation of 5.78 billion rupees. It was the worst performer among the Nifty constituents falling 2.56% to close at 1357.55.