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

Nifty at record high, Economic data eyed.

“Indian Indices opened higher tracking positive sentiments from global markets and bullish sentiments were seen among banking stocks ahead of CPI data to be released today. Nifty was supported by auto index while Energy and metals sectors were seen dragging Nifty down. Gains were seen decreasing in later session and Nifty managed to close above the previous close at 8383.3 up by 0.25% touching new highs. Q2 earnings and economic data are eyed by the investors ahead. European markets were seen down as the Indian markets ended. Mid cap stocks were seen up while small cap index was seen down. Advance decline ratio was seen at 24:26” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian Indices opened higher tracking positive sentiments from global markets and bullish sentiments were seen among banking stocks ahead of CPI data to be released today. Nifty was supported by auto index while Energy and metals sectors were seen dragging Nifty down. Gains were seen decreasing in later session and Nifty managed to close above the previous close at 8383.3 up by 0.25% touching new highs. Q2 earnings and economic data are eyed by the investors ahead. European markets were seen down as the Indian markets ended. Mid cap stocks were seen up while small cap index was seen down. Advance decline ratio was seen at 24:26.

USDINR opened flat in today’s session tracking positive clues from Indian indices. Asian currencies were seen trading mix against US dollar. USD index was seen up by 0.21% suggesting strength in greenback. Investors are seen cautious ahead of CPI and WPI data to be released ahead. Rupee was seen trading around 61.50 levels as the equity markets ended. It is expected to trade in a range of 61.35-61.60.

Other Asian Markets

Asian indices were seen trading in positive today. NIKKEI closed at 7 year high after delay in planned tax increase. Positive sentiments from US markets supported Asian indices. Hang Seng closed in positive gaining 0.55% to close at 239238.18, while KOSPI was seen slightly up by 0.22%. SSE Composite managed to close above the previous close.

Commodity Outlook:

Commodity market was very weak in the morning session. Gold and Silver Prices showed signs of bouncing off from lower levels but strength of dollar kept their Prices down. Crude Oil remained weak in the morning session as Investors continued to be cautious after Iraq price cut and Natural Gas Prices also dipped in the morning session due to profit taking. Base Metals traded mixed in the morning session. Copper Prices continued to be weak on strong dollar

Evening outlook:

Gold and Silver Prices could be steady in the Evening session; Crude Oil and Natural Gas are expected to continue to be weak while Base Metals are expected to make modest gains in the Evening session.

Stock Recommendations:

SBI– Buy at Rs.2746.05(CMP); Target - Rs.2800.00; Stop Loss – Rs.2695.00

BPCL– Sell at Rs.765.3(CMP); Target - Rs.758.00; Stop Loss – Rs.772.00

Titan– Buy at Rs.378.45(CMP); Target - Rs.383.00; Stop Loss – Rs.374.50

Sectors Snapshot

Bank Nifty: Bank Nifty opened higher today and touched its life time tracking positive global cues and positive sentiments were seen ahead of CPI data to be released today which is expected to be record low. Yes bank was the top gainer among the Bank Nifty constituents.

CNX Energy: Energy index opened higher but could not sustain the gain and fell by 1%, index was dragged down by IOC (-3.76%) and power grid (-3.18%) as the company’s Q2 earnings were seen below expectations.

CNX Pharma: Indian indices were seen positive tracking positive global cues, defensives saw outflow falling 0.76%. Cadila Healthcare was the top gainer among the index while Piramal Enterprise gained 4.85%.

CNX Media: Index opened slightly above the previous close and closed in red after showing some weakness. Network 178 band Den networks were the major loser while Eros International gained 3.01%.

India VIX:  India VIX fell by 2.47% as markets were seen positive.

Market Movers

Gainers

Axis Bank - Axis Bank was the top gainer on Nifty today. The bullish sentiment was seen ahead of CPI data coming today. CPI is expected to fall to a record low. Axis bank rose more than 3% after opening high. Bank Nifty touched its life time high.

Losers

Power Grid- Power Grid corp. was top loser on Nifty. The stock opened lower and gradually showed weakness throughout the session. The co posts Q2 results below expectations with a 3% fall in net profit.

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