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

Nifty trades choppy ahead of expiry, realty and FMCG drags Nifty

“Indian equity markets witnessed sharp profit booking today as mood remained cautious ahead of Q2 GDP numbers expected this week. Banking stocks were down on profit booking and realty also dragged the index ahead of F&O expiry and sharp profit booking. ITC closed down by more than 5% as govt. accepted draft proposal of ban on loose cigarette sale. India VIX rose more than 3% suggesting volatility ahead of November F&O expiry. IT stocks also lost momentum as Rupee traded in a narrow range and could not breach 62”, Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian equity markets witnessed sharp profit booking today and took a breather ahead of Q2 GDP number expected this week. Banking stocks were down on profit booking and weak open on Rupee. IT stocks also lost momentum and weighed on the index as Rupee traded in a narrow range. ITC dragged the index post govt. accepted draft of ban on sale of loose cigarette. Expiry also weighed on markets with India VIX rising 3.9%, though Nifty made recovery in final hour of the trade to close above 8450. Realty sector stocks also closed in deep red on back of strong profit booking .CAD data for Q2 is awaited which will have impact on Rupee. Globally, FII flows were cautious ahead of US Q2 GDP numbers to be released today.

Other Asian Markets

Asian indices closed mixed today taking a breather after recent rally. Profit taking kept market gains capped. China’s indices touched three year high as rate cut positive sentiment remained. US GDP numbers also remained in focus which is expected to set mood for Wall Street today. SSE rose 1.37% as more rate cuts in future were anticipated should economy doesn’t recover. Singapore index closed flat after decent growth in GDP in third quarter.

Commodity Outlook:

Commodity Market was very volatile in the morning session. Gold and Silver Prices looked strong in the morning session as the positive bias continued after China’s rate cut. Crude Oil traded cautiously ahead of OPEC meeting on Thursday while Natural Gas Prices made modest gains due to bargain hunting by investors. Base Metals was range bound in the morning session as Investors awaited US GDP data

Evening outlook:

Gold and Silver Prices could continue to be positive in the Evening session; Crude Oil and Natural Gas could be flat while US GDP data could decide the momentum in Base Metals.

Stock Recommendations:

ONGC – Buy at Rs.386.45 (CMP); Target - Rs.391.00; Stop Loss – Rs.383.00

Axis Bank - Sell at Rs.470.75(CMP); Target - Rs.566.00; Stop Loss – Rs.475.50

Tech Mahindra - Sell at Rs.2620.40(CMP); Target - Rs.2590.00; Stop Loss – Rs.2646.00

Sectors Snapshot

Bank Nifty: Bank Nifty witnessed sharp profit booking ahead of CAD data awaited and GDP number awaited on 28^th November. Initial weakness in Rupee weighed on banking stocks and major stocks gave up gains after trading in a overbought zone.

CNX IT: CNX IT opened higher buoyed by strength in global tech stocks and weak opening on Rupee but gave up most gains gradually during the session as Rupee strengthened slightly and overall weakness in equity markets weighed on major IT stocks.

CNX Energy: Energy Sector traded with weakness in the session today as Investors were cautious ahead of the OPEC meeting later this week which could determine the fate of Crude Prices. ONGC was the top gainer as Investors show signs of betting on reduction in supply by OPEC.

CNX Pharma: Nifty was hit by profit taking and flow of money was seen in Pharma sector with Glenmark Pharma being the top gainer of the session after a fall in yesterday's session supported by Cipla while Glaxosmithkline Pharma and Piramal Enterprise limited the upside.

Currency:

USDINR gained in morning session and breached 62 mark but could not sustain gains and traded in a narrow range amid awaited Q2 CAD data. Globally USD Index rose marginally suggesting gains in USD against world currencies. Also, weakness in equity markets also kept Rupee form gaining further. Month end Dollar demand from oil cos and PSU banks is expected to keep Rupee in a range of 61.5-62. Further cues from RBI and GDP Q2 numbers is expected to provide direction.

Market Movers

Gainers

BHEL: Shares rose more than 3% sentiments got a boost after Citigroup Global Markets upgraded its rating on the stock from 'sell' to 'buy'.

Zee Entertainment: Shares rose more than 2% as the company plans to launch new general entertainment channel by the end of year.

Losers

ITC: Shares fell in today's session being top loser of Nifty after government accepted panel proposal to ban sale of loose cigarettes, also increasing the minimum legal age for sale of tobacco.

NMDC: Shares were down by 3.80% after report showed that company plans to invest 8 billion rupees in Chattisgarh-Vizag pipleline.

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