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

Benchmark indices range bound; Nifty hold 8,500, CNX Midcap at record high

“Indian equity markets witnessed volatile session. Nifty opened higher but could not sustain 8600 and gave up early gains. IT stocks dragged the index on account of profit booking while banking stocks rose with focus on ECB policy meet. Domestic inflation and IIP data kept the sentiment upbeat on banks. ITC lifted the index on anticipation that  govt. may put hold on ban of sale of loose cigarettes. Also, anticipation of further easing by China's PBOC kept sentiment upbeat in Asian equity markets. Rupee was seen trading weak ahead of strong US data. ITC and SSLT were the top gainers, while Hindalco and HCL were the top loser”, Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian equity markets witnessed a volatile session today with benchmark indices opening higher led by strong positive momentum in Asian markets. Asian markets were up tracking positive close on Wall Street and expected PBOC cut in bank reserve requirements. ECB policy decision and cues for QE by president Draghi was awaited. Domestically, ITC provided strong support to the benchmark on media reports that govt,. may hold the plan to ban sale of loose cigarettes. Banking stocks also led the gains on index ahead of ECB decision and upcoming domestic inflation and IIP data. Expectations of cooling inflation kept banking stocks up. IT stocks on the other hand saw profit booking as Rupee failed to weaken and provide strong cues to major IT companies.

Other Asian Markets

Asian indices were seen trading in positive tracking positive US data. SSE Composite hit three year highs on expectation of further stimulus measures. Oil companies were up tracking gains in oil prices. Hang Seng gained 1.72% recovering previous session’s losses. NIKKEI gained in today’s session on back of weakening Yen, which hit new seven year low. KOSPI gained after GDP data released in line with the expectation.

Commodity Outlook:

Commodity Market traded flat in the morning session. Gold and Silver remained weak in the morning session ahead of ECB Policy and strong dollar. Crude Oil Prices remained flat in the morning session on supply concerns while Natural Gas also didn’t show much movement as Investors were cautious due to mild weather forecasts in USA. Base Metals were strong in the morning session on talks of China stimulus but caution prevailed ahead of US jobs data.

Evening outlook:

Gold and Silver are expected to trade weak in the Evening session; Some rebound can be expected in Crude Oil and Natural Gas were Base Metals are expected to trade sideways in the Evening session.

Stock Recommendations:

Marico - Buy at Rs.329.00(CMP); Target - Rs.333.50; Stop Loss – Rs.326.00

Bank of Baroda - Sell at Rs.1085.20(CMP); Target - Rs.1070.00; Stop Loss – Rs.1100.00

Tata Power – Buy at Rs.89.15 (CMP); Target - Rs.90.5; Stop Loss – Rs.88

Sectors Snapshot

Bank Nifty - Bank Nifty gained today taking support at its 5EMA of 18570. The index was led by gains in private banking stocks while some PSB also participated. Rumors of China further easing monetary policy and upcoming inflation data which is expected to cool for month of November buoyed sentiment in banking stocks while ECB rate decision was awaited.

CNX IT: Index opened steady in today’s session and fell as rate sensitive stock were seen gaining momentum in today’s session. Major stocks traded flat to negative, Just Dial was the top loser among the index followed by HCL tech as rupee was seen weakening.

CNX Energy: CNX Energy lost over 50 points in the session today as global Crude Prices continue to look weak. OMCs, BPCL and IOC, were the only stocks that traded in positive in the sector with BPCL gaining over 2%.

CNX Pharma: Due to lack of trigger, Pharma sector traded in a range with a negative bias. Defensives were seen down on account of profit taking, investment was seen flowing in rate sensitive stocks after RBI maintained status quo. Dr. Reddy's was the top loser amongst the index.

Market Movers

Gainers

ITC: The FMCG major rose more than 5% as media reports suggested the govt. may hold the proposal for ban on sale of loose cigarettes. ITC generates major revenue from its tobacco business.

Sesa Sterlite: After recent downtrend, some relief was seen on stock with up move continuing today as well. Rate cut in China lifted sentiment while rumors of further easing by PBOC helped stock to hold gains.

Losers

Hindalco- The co witnessed profit booking today. Court will hear CBIs Hindalco coal case closure report on Dec 12 which kept stock in focus.

HCL Tech: HCL was top loser on Nifty today as investors took profit on the counter. The correction was due technically, also Rupee remained din a stable range providing no cues to the stock.

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