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

Nifty continues to zoom further; driven by Q2 earnings

“Indian Indices continued to make new make highs and closed at all time highs. Markets were seen up tracking positive US growth data and Asian indices. Markets are seen at new highs on back of positive Q2 earnings by the companies and positive sentiments. Nifty hit all time high of 8330.75 and closed at 8322.2 while Sensex hit all time high of 27894.32 and closed at 27865.83. IDFC was the top gainer among the Nifty on back of robust earnings while ITC and M&M posted weaker earnings. Advanced decline ratio was seen at 48:2. Nifty was more driven by Energy space and Banks” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian Indices continued to make new make highs and closed at all time highs. Markets were seen up tracking positive US growth data and Asian indices. Markets are seen at new highs on back of positive Q2 earnings by the companies and positive sentiments. Nifty hit all time high of 8330.75 and closed at 8322.2 while Sensex hit all time high of 27894.32 and closed at 27865.83. IDFC was the top gainer among the Nifty on back of robust earnings while ITC and M&M posted weaker earnings. Advanced decline ratio was seen at 48:2. Nifty was more driven by Energy space and Banks.

USD INR pair opened up 06 paisa up after tracking positive sentiments in Indian markets. Most of the Asian currencies were seen strong against dollar. However, USD index was seen up to touch 86.7 as Yen slips on easing of monetary policy. Rupee was supported by strong inflow in domestic market and is expected to trade in a range of 61.20-61.50. Rupee was seen trading at 61.40 levels as the domestic markets ended.

Other Asian Markets

Asian indices were positive in today’s session tracking positive US GDP data that beat estimates. NIKKEI rallied 4.8% to touch its seven year high after Bank of Japan eased its monetary policy. Rise in SSE composite continued after talks about boosting consumption. KOSPI managed to stay in positive gaining 0.28%. Hang Seng tracked other Asian markets and was seen trading in green.

Commodity Outlook:

Commodity Market was very volatile in the morning session. Gold and Silver Futures traded almost at their 4 year lows following the US optimism over its economy and Bank of Japan stimulating the economy through easing of their monetary policy. Crude Oil Prices stayed weak on strong dollar and Natural Gas Prices shot up in the morning session due to chilly weather forecasts in USA. Base Metals stayed strong in the morning session on Japan and US lead.

Evening outlook:

Gold and Silver Prices are expected to dip further in the Evening session; Crude Oil Prices are expected to stay weak while Natural Gas could make gains; Base Metals are expected to stay strong in the evening session.

Stock Recommendations:

Gail – Sell at Rs.528.80(CMP); Target –Rs.523.00; Stop Loss –Rs.534.00

NTPC– Buy at Rs.150.1(CMP); Target –Rs.152.00; Stop Loss – Rs.148.50

SSLT– Buy at Rs.255.95(CMP); Target –Rs.259.00; Stop Loss – Rs.253.00

Sectors Snapshot

Bank Nifty: Bank Nifty was seen up tracking positive sentiments in domestic markets. Bank Nifty touched all time high at 17060.15. Index was supported by Bank of India which gained more than 4% and Canara Bank up by 3.90%.

CNX Energy: Index opened higher and continued to stay in positive as crude kept its low giving support to oil companies. Reliance Power (+4.95%) was the top gainer among the index followed by Tata Power (+3.53%).

CNX Pharma: Pharma traded in range in the beginning of the session and rallied to 2% in afternoon session driven by all the stocks except Cadila healthcare which traded in red. Piramal Enterprise was the top gainer amongst pharma.

CNX Media: Media space erased its gains after bad results posted by PVR (-1.55%) and heavyweight Zee was seen down. Den Networks was major loser amongst all falling 1.84%.

India VIX: India VIX was marginally up by 0.23% as the markets were seen positive.

Market Movers

Gainers

IDFC: Shares of the company were top gainer in today’s session gaining 5.43% to close at 156.3 after company posted robust July-September results which were above estimates. Net profit was seen at 4.7 billion rupees against estimated 4.27 billion rupees.

Losers

Bharti Airtel: Shares of the company were seen down in today’s session as huge chunk of profit booking was seen after company posted its Q2 results yesterday which met estimates and net profit was up by 25% quarter on quarter. Shares fell by 2.11% to close at 398.9 being Nifty worst performer.

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