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

Nifty slips below 8350; profit taking continues

“ Indian equity markets witnessed negative open today with benchmark indices Nifty and Sensex opening lower. The negative open was seen as a result of weakness in global sentiment and selling in Asian markets in morning session. US Fed policy decision later this month and upcoming CPI data kept upper limit on Nifty capped. While banking stocks lifted the index on awaited RBI guidelines of 5-25 restructuring plan, volatility in Chinese markets kept metal stocks under pressure. Inflows were seen in defensives with subdued activity. Draft report to be tabled in Rajya Sabha remained in focus while jewellery stocks rallied as investors anticipated more gold import curbs by government..” ,Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian equity markets witnessed negative open today with benchmark indices Nifty and Sensex opening lower. The negative open was seen as a result of weakness in global sentiment and selling in Asian markets in morning session. US Fed policy decision later this month and upcoming CPI data kept upper limit on Nifty capped. While banking stocks lifted the index on awaited RBI guidelines of 5-25 restructuring plan, volatility in Chinese markets kept metal stocks under pressure. Inflows were seen in defensives with subdued activity. Draft report to be tabled in Rajya Sabha remained in focus while jewellery stocks rallied as investors anticipated more gold import curbs by government.

Other Asian Markets

Asian markets traded with a negative continuing the weakness from yesterday. Nikkei was major loser on fears of downgrade by rating agencies and following weakness on Wall Street. Yen also gained against USD keeping export stocks under pressure. China’s index continued to show volatility and erased losses to close higher. Yuan depreciation led to expectations of cut in bank reserve requirements by PBOC. Chinese inflation data suggested slowdown in economic activity keeping Asian equities under pressure.

Commodity Outlook:

Commodity Market traded flat in the morning session. Gold and Silver Prices remained range bound in the morning session as Equity markets recovered and strong retained strength. Crude Oil Prices continued to dip further on bearish US supply report while Natural Gas Prices traded flat in the morning session. Base Metals was mixed in the morning session as Chinese Inflation data affected investors’ sentiment.

Evening outlook:

Gold and Silver Prices are expected to remain range bound in the Evening session; Crude Oil and Natural Gas Prices are expected to remain weak while Base Metals could continue to be mixed in the Evening session.

Stock Recommendations:

ONGC – Buy at Rs.361.10(CMP); Target - Rs.365.00; Stop Loss – Rs.358.00

M&M Finance - Buy at Rs.322.55(CMP); Target - Rs.326.00; Stop Loss – Rs.319.00

Tata Steel - Buy at Rs.432.5(CMP); Target - Rs.437.00; Stop Loss –`428.00

Sectors Snapshot

Bank Nifty – Bank Nifty opened slightly lower but gained momentum .PSU banks recovered after recent sell off. Banking stocks were lifted as investors waited for RBIs guidelines on 5-25 restructuring. Where the restructuring for existing projects can be extended up to 25 years and may also provide banks to take more equity in restructuring.

CNX IT: Major IT stocks witnessed some profit booking but witnessed support at lower levels as currency was under pressure. The breadth was flat to negative on IT stocks. Smart recovery by NASDAQ in previous session also helped export oriented IT stocks to cut losses and closed marginally lower.

CNX Energy: Energy Sector traded flat in the morning session; Oil Producers gained in the session today on bargain hunting while OMCs continued to slide in the session today; ONGC was the biggest gainer in the index gaining over 2%.

CNX Pharma: Index opened lower in today's session and was able to close in green after two consecutive days of profit taking was seen supported by Piramal Enterprise which was the top gainer gaining 3.63% and Cipla rose by 1.54%.

Market Movers

Gainers

SBI: Shares of banking companies rose today after RBI said it will soon come out with guidelines for loan restructuring for existing projects.

JSPL: Share prices rose on hopes that coal clock auction bidding process would help incumbents. Shares were up by 2.76%.

Losers

BHEL: Profit taking continues in the stock after stock rallied over 15% as Citigroup Global upgraded the stock to buy.

NMDC: Profit taking was seen in today's session after shares prices rose on account of reduction in iron ore prices and increase in production by 10%.

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