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

Nifty a record high, India VIX rises 6.25%

“Indian equity markets traded with caution and waited for Oct CPI data expected tomorrow. Benchmark indices opened slightly higher drawing optimism from Wall Street and strong Asian markets. Nifty opened above 8350 but faced stiff resistance near 8375 and trade in range of 50 points. FII flows were positive in previous session. Mid cap and small cap indices outperformed the large cap benchmark while India VIX rose 6.25% ahead of inflation and IIP data. European markets opened slightly higher and traded in positive territory. Telecom, IT stocks were weak on index while banks provided support to the index” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

opened slightly higher drawing optimism from Wall Street and strong Asian markets. Nifty opened above 8350 but faced stiff resistance near 8375 and trade in range of 50 points. FII flows were positive in previous session. Mid cap and small cap indices outperformed the large cap benchmark while India VIX rose 6.25% ahead of inflation and IIP data. European markets opened slightly higher and traded in positive territory. Telecom, IT stocks were weak on index while banks provided support to the index.

USDINR opened slightly higher and traded with a positive bias as equity markets remained under pressure today. Rupee weakened towards 61.65 but hovered in a narrow range of 10 paisa. CPI and balance of trade data was eyed to check trade deficit in the country.USD showed some strength against major world currencies with USD Index trading up by 0.17%. Most Asian currencies were weak against the greenback. Range of 61.00- 61.80 is expected in coming weeks ahead of GDP data and RBI policy.

Other Asian Markets

Asian indices traded strong in morning but closed mixed. Nikkei closed up by 2.05% at 7 month high. Yen also weakened against USD proving strength to export stocks in Japan. Profit taking dragged SSE and the index closed down by 0.16%. HSI also registered gains of 0.27%. Most Asian currencies were weak against USD. KOSPI gained 0.24% after the news of a free trade deal with China.

Commodity Outlook:

Commodity Market was range bound in the morning session. Gold and Silver Prices showed some strength but their upper side was limited on strong dollar. Crude Oil Prices were weak due to the Iraq Price cut and Natural Gas Prices also dipped in the morning session due to profit taking. Base Metals traded flat in the morning session as the strength of the Equity Markets provided them support.

Evening outlook:

Gold and Silver Prices are expected to dip further in the Evening session; Crude Oil and Natural Gas are also expected to trade weak while Base Metals are expected to be steady in the Evening session

Stock Recommendations:

Ambuja Cement – Buy at Rs.225.35(CMP); Target - Rs.228.00; Stop Loss – Rs.223.00

ITC – Sell at Rs.364.10(CMP); Target - Rs.360.00; Stop Loss – Rs.367.50

SBI – Sell at Rs.2740.5(CMP); Target - Rs.2712.00; Stop Loss – Rs.2765.00

Sectors Snapshot

Nifty: Bank Nifty saw a volatile session but registered gains coming off days low. Overall breadth was positive ahead of IIP data coming tomorrow. PSB major SBI was flat ahead of Q2 results on Friday. Other PSU banks Bank of Baroda, Canara and BOI rose more than 2.5%.

CNX Energy: Energy index opened higher and maintained mild gains after witnessing profit taking in previous session. OMC stocks lost momentum and were flat to negative. GAIL India rose 1.83% after UP govt. gave OK to its 380 MW plant plan.

CNX Pharma: Pharma index opened higher but lost momentum and registered mild gains. Cadila health rose 9.81% and Sun pharma rose 0.66%, lifting the index. Other major stocks closed in red.

CNX Media: Media index rose 0.72% lifted by Zee Entertainment (+1.60%). Eros rose more than 3%. Breadth was mildly negative in index constituents but majors lifted the index.

India VIX:  India VIX rose 6.25% ahead of CPI and IIP.

Market Movers

Gainers

PNB: Shares of the company were seen up in today's session after Bank Nifty was seen strong as most of the banks were seen up ahead of CPI and WPI data to be released this week. PNB was the top gainer among the Nifty constituents up by 3.41% to close at 954.05.

Losers

BHEL: Shares of the company were down by 2.23% to close at 245.30 after Nifty was seen trading weak in early sessions. BHEL is expected to post its Q2 on Nov 14th. Stock was see weak ahead of the results. it was the worst performer among the Nifty constituents.

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