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WealthRays Securities Source Name: WealthRays Securities

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

Dec 05, 2014   17:57 IST 
India

Nifty down on profit booking, US job data eyed, Realty and FMCG gains.

“Equity markets witnessed flat movement ,during the last hour of trade the benchmark was dragged by IT, Pharma and banking stocks. Most private banks witnessed profit taking and IT stocks were down due to flat range in Rupee and profit booking post recent run up. Also, slowdown in Europe and weakness in global tech stocks weighed on major IT cos. No action by ECB kept Wall Street under pressure while media reports suggested that ECB may take action in Jan which resumed some positive sentiment in markets. European markets were up after closing low yesterday. Nifty took positive sentiment from global markets but gave up gains ahead of US jobs data and domestic CPI and IIP data coming next week”, Mr. Kiran Kumar Kavikondala said.

 

Indian Markets

Equity markets witnessed flat movement during first half of the session with Nifty witnessing very narrow range. During the last hour of trade the benchmark was dragged by IT, Pharma and banking stocks. Most private banks witnessed profit taking and IT stocks were down due to flat range in Rupee and profit booking post recent run up. Also, slowdown in Europe and weakness in global tech stocks weighed on major IT cos. ECB was expected to take some concrete measure such as QE to spur growth in Euro zone but the ECB will take action next year, this impacted markets over the world with Wall Street trading under pressure. Some media reports suggested that ECB may take action in Jan which resumed some positive sentiment in markets. European markets were up after closing low yesterday. Nifty took positive sentiment from global markets but gave up gains ahead of US jobs data and domestic CPI and IIP data coming next week.

 

Other Asian Markets

Asian indices closed in green registering gains for second consecutive session. Japan took cues from Wall Street but recovered from losses and closed in green. Weak Yen lifted export stocks and supported Nikkei. China’s benchmark SSE also continued to rise with buying resuming for second day. Accommodative monetary stance by PBOC was the reason for positivity in Chinese equity markets.  Asian indices erased gains and closed in red. US job data was eyed.

 

Commodity Outlook:

Commodity Market traded flat in the morning session. Gold and silver traded from flat to weak in the morning session ahead of US jobs data which kept investors cautious. Crude Oil Prices continued to remain weak on supply concerns while Natural Gas Prices rebounded due to bargain hunting by investors at lower levels. Base Metals traded on a positive note driven by Chinese economy which drove Shanghai Index to record highs.

 

Evening outlook:

Gold and Silver Prices are expected to remain weak in the Evening session; Crude Oil and Natural Gas are expected to show signs of strength while Base Metals are expected to be range bound in the Evening session.

 

Stock Recommendations:

 

Aurobindo Pharma - Sell at Rs.1125.80(CMP); Target - Rs.1114.50; Stop Loss – Rs.1137.00

 

Crompton Graves - Sell at Rs.191.05(CMP); Target - Rs.189.00; Stop Loss – Rs.193.00

 

Reliance – Buy at Rs.957.35 (CMP); Target - Rs.968; Stop Loss Rs.948

 

Sectors Snapshot

Bank Nifty – Bank Nifty opened higher but could not sustain gains and closed in red. The negative move was result of caution in market ahead of CPI and IIP data expected next week and profit by market participants. Private Banks traded under pressure owing to profit booking while PSB were up. Some banks reported embezzlement for FY 15.

 

CNX IT: IT index witnessed profit booking today. The fall was due to weakness in major IT cos which were affected by sharp profit booking by investors after recent run up, flat range of Rupee failing to provide any positive cues, weakness in global tech stocks on Wall Street and slowdown in Euro zone.

 

CNX Energy: Oil Producing companies lost around 50 points in the session today as Crude Oil Prices continued to tumble while OMCs also dipped on profit taking. BPCL was the biggest loser in the session losing over 2%.

 

CNX Pharma: Pharma space traded weak in today's session and profit taking was seen as rupee was seen strengthening. Major stocks were seen down by more than 1%. Dr. Reddy's was the top loser amongst the index.

 

Market Movers

Gainers

DLF: The stock was the top gainer ahead of talk of strong buying from FII's ahead of SAT's hearing on company's plea against the SEBI order.

 

Ambuja Cements: The stock was second top gainer in today's session ahead of weak sentiments in markets. Stock rallied as the company cut cement prices.

 

Losers

Wipro: IT companies took beating in today's session as rupee was seen gaining strength ahead of IIP numbers. Wipro fell more than 2%, while sector was down by 1.81%.

 

Dr. Reddy's: Export oriented companies were seen trading weak, though rate sensitive were down, due to strengthening of rupee IT, Pharma were seen down.

 

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