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

Nifty makes new closing highs supported by autos and PSB's.

“Indian equity markets witnessed a volatile session today but benchmark indices closed at their intraday highs. Nifty closed at 8430.75 after remaining weak during the initial hours of the session. Weakness in Asian markets and weak Japan GDP numbers kept markets under pressure. Trade deficit data for month of October came at 13.4 billion Rupees against Rs.10.00 billion an year ago. Equity markets rose post trade data with benchmark Nifty breaking 840 supported by PSB major SBI . Private banks dragged the index while Auto stocks provided support” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian equity markets witnessed a volatile session today but benchmark indices closed at their intraday highs. Nifty closed at 8430.75 after remaining weak during the initial hours of the session. Weakness in Asian markets and weak Japan GDP numbers kept markets under pressure. Trade deficit data for month of October came at 13.4 billion Rupees against Rs.10.00 billion an year ago. Equity markets rose post trade data with benchmark Nifty breaking 840 supported by PSB major SBI . Private banks dragged the index while Auto stocks provided support.

USDINR opened lower but continued to move higher ahead of trade data. Trade data was release on 1430 IST and as trade deficit for month of October increased Rupee was seen weak against the green back. FII inflows in equity markets however kept Rupee in a narrow range. USD Index was also down suggesting weakness in greenback against major world currencies. US FOMC minutes remained in focus for further up move on USD. Most Asian currencies traded mixed to slightly stronger against the greenback.

Other Asian Markets

Asian indices closed in red with Nikkei losing momentum and witnessing sharp profit booking after weak Q3 GDP data. Japan’s economy contracted 1.6% annualized. SSE also lost all gains made in initial hours of the trade and closed down by 0.19%. HSI also lost 1.21%. KOSPI recovered from day’s lows and closed -0.08% down

Commodity Outlook:

Commodity Market traded flat in the morning session. Gold and Silver Prices were weak in the morning session as strong dollar continued to weigh on their prices. Crude Oil continued to dip on supply concerns while Natural Gas Prices gained on chilly weather forecasts in USA. Base Metals continued to trade choppy as supply concerns and strong dollar continued to keep their prices down.

Evening outlook:

Gold and Silver are expected to remain steady in the Evening session; Crude Oil is expected to dip while Natural Gas could make gains; Base Metals could continue to trade flat in the Evening session.

Stock Recommendations:

Buy Reliance at Rs.985.2; Target – Rs.995; Stop Loss - Rs.976

ACC – Buy at Rs.1496.60(CMP); Target - Rs.1480.00; Stop Loss – Rs.1410.00

TATA Power-Sell at Rs.88.55(CMP); Target - Rs.87.50; Stop Loss – Rs.89.50

Sectors Snapshot

Bank Nifty: Bank Nifty remained flat for most of the session but was lifted by Public banks and made an up move post release of trade data for month of Oct. While on the other side private banks dragged the index with HDFC bank losing 1.2%. SBI (=5.48%) was top gainer on the index.

CNX Energy: Energy index opened flat and rose consistently to gain 1.11%. The sentiment was lifted by refineries and power cos with all gaining more than 1.5%. NTPC gained 1.965. BPCL witnessed profit booking and closed down by 1.2%.

CNX Pharma: Pharma index remained in a flat range and closed down by 0.07%.The momentum on its constituents remained mixed. Major stocks such as Ranbaxy (-1.87%) capped gains and kept index under pressure. Delays in Sun Pharma and Ranbaxy deal weighed on the stocks.

CNX Media: Media index gained 1.12%lifted by Zee(+1.05%) and Network 18(+4.03%). Other major stocks closed flat to slightly in red. Mid cap stocks provided support to the index.

India VIX:  VIX rose 3.13% as Nifty scaled new highs.

Market Movers

Gainers

SBI: SBI was the top gainer in today's session and touched year high at 2951.30 after posting a strong July-September earnings. Stock gained 5.48% to close at 2940.60 as major brokerage house retains 'BUY" outlook for the stock.

Losers

JSPL: JSPL was the worst performer among Nifty constituents falling 2.62% to close at 154.40 after rise of 4% in previous session on account of profit taking and on expectation of increase in the debts of the company.

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