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

Nifty holds on to gains, Realty and Pharma leads

“Indian equity markets witnessed a volatile session with Nifty taking breather after rally in previous week. Nifty hovered near 8330 mark during the session after breaking 8300 but recovered to close at 8337. Bank of Baroda posted its Q2 earning of fall in net profit by 5.48% YoY with deteriorating asset quality. Gross NPA for Q2 rose to 3.32%. Banking stocks dragged Nifty thereafter but came off days low. Weakness in Rupee also weighed on markets. Pharma and IT stocks lifted the benchmark. Caution was seen ahead of crucial CPI and IIP data coming next week. European indices traded with positive bias on hopes of ECB stimulus providing positive sentiment to Indian markets. Realty, Pharma and Media indices were tops gainers among sectors. Mid cap and small cap indices traded mixed and with a negative bias.” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian equity markets witnessed a volatile session with Nifty taking breather after rally in previous week. Nifty hovered near 8330 mark during the session after breaking 8300 but recovered to close at 8337. Bank of Baroda posted its Q2 earning of fall in net profit by 5.48% YoY with deteriorating asset quality. Gross NPA for Q2 rose to 3.32%. Banking stocks dragged Nifty thereafter but came off days low. Weakness in Rupee also weighed on markets. Pharma and IT stocks lifted the benchmark. Caution was seen ahead of crucial CPI and IIP data coming next week. European indices traded with positive bias on hopes of ECB stimulus providing positive sentiment to Indian markets. Realty, Pharma and Media indices were tops gainers among sectors. Mid cap and small cap indices traded mixed and with a negative bias.

USDINR opened flat and USD gained momentum on China stimulus and hopes of ECB stimulus and strong jobless claims data in US. FII Flows in equities continued which kept USDINR pair flat for most of the session after opening higher. But strength was seen in USD against INR ahead of Oct inflation data. USD Index was trading flat giving up momentum while most Asian currencies were mixed against the greenback. USDINR broke 61.50 and hovered near 61.60 towards close of Indian equity markets. Range of 61.2-61.85 is seen going forward.

Other Asian Markets

Major Asian indices closed mixed today. Nikkei rallied 0.52% gaining momentum from positive close in US markets. Also, weak yen lifted export stocks and supported the benchmark. SSE closed down by 0.32% as profit taking was seen and HSI witnessed huge swings which recovered early losses but gave up gains to close down by 0.42%. KOSPI closed up by 0.18%.

Commodity Outlook:

Commodity Market was very volatile in the morning session. Gold and Silver made some gains despite weak fundamentals which is mainly due to increase in retail demand at lower levels. Crude Oil Prices held steady while Natural Gas made gains of more than 3% due to chilly weather forecasts in USA. Base Metals made gains as strong Equity Markets and ECB policy decision provided solid support.

Evening outlook:

Gold and Silver Prices are expected to be range bound in the Evening session; Crude Oil is expected to be flat while Natural Gas could continue its bull run; Base Metals are expected to continue their steady progress.

Stock Recommendations:

BHEL – Sell at 249.00(CMP); Target -246.50; Stop Loss –251.50

Titan – Buy at 378.85(CMP); Target -383.00; Stop Loss – 375.00

BPCL – Sell at 759.15(CMP); Target -751.00; Stop Loss – 767.00

Sectors Snapshot

Bank Nifty: Bank nifty witnessed volatile session today. The index opened flat and saw a fall after PSB major BoB posted weak Q2 numbers. Public banks kept the index under pressure but recovered from lows. Bias remained negative on the constituents today.

CNX Energy: Energy index remained flat and closed down by 0.14%. OMCs continued to gain while power stocks were down. GAIL India (-2.56%) was top loser on the index. ONGC rallied 1.50% ahead of govt. divestment plan.

CNX Pharma: Pharma index rallied with strong inflows seen in most constituents. Majors provided strong support to the index with exception of Cipla (-1.27%).

CNX Media: Media index also rallied and touched its all time high. Zee Entertainment rose 4.79%, lifting the index. Other constituents remained mixed. Major stocks came off lows lifting the index.

India VIX:  India VIX gained 2.58% in volatile session.

Market Movers

Gainers

DLF: Shares of the company were seen up today after the Securities Appellate Tribunal granted interim relief to the company against the Securities and Exchange Board of India order barring the company from the capital markets. DLF was the top performer among Nifty constituents by gaining 6.11% to close at 134.50.

Losers

BHEL: Shares of the company were seen down by 3.47% to close at 249 ahead of its Q2 earnings due on 14th November. It touched intraday high of 261.85 after bagging 2.2 billion rupees contract from NTPC but lost all the gains. It was the worst performer among the Nifty constituents.

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