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

Indices end lower tracking weak global cues; crude continues to fall

“Indian markets witnessed sharp correction today with Nifty breaching 8300 mark. The volatility index VIX rose suggesting fear in markets. Major cos on Nifty led the fall. Weak global oil prices kept energy stocks under pressure dragging Reliance and ONGC. Weak Asian markets, Japanese economic data and sharp sell off on Wall Street weighed heavily in Indian markets today. Weakness in currency was another reason for sell off in financial stocks. Cabinet approved PSBs to lighten govt holdings keeping minimum 52% govt. holding which supported banking stocks. Metal stocks continued its rout on back of volatility in China. While oil prices rebounded slightly supporting European markets. ECB data on its low rate program was eyed. Domestic CPI and IIP is data is expected totomorrow which will provide further direction to Indian equity markets” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian markets witnessed sharp correction today with Nifty breaching 8300 mark. The volatility index VIX rose suggesting fear in markets. Major cos on Nifty led the fall. Weak global oil prices kept energy stocks under pressure dragging Reliance and ONGC. Weak Asian markets, Japanese economic data and sharp sell off on Wall Street weighed heavily in Indian markets today. Weakness in currency was another reason for sell off in financial stocks. Cabinet approved PSBs to lighten govt holdings keeping minimum 52% govt. holding which supported banking stocks. Metal stocks continued its rout on back of volatility in China. While oil prices rebounded slightly supporting European markets. ECB data on its low rate program was eyed. Domestic CPI and IIP is data is expected totomorrow which will provide further direction to Indian equity markets.

Other Asian Markets

Asian indices continued their fall with Nikkei leading the fall and keeping breadth negative in Asian markets. Japanese machinery orders data for previous month showed further weakness in the economy. Yen showed some strength against the greenback keeping equities under pressure. China volatility continued and fall in oil prices kept the momentum negative further as OPEC cut demand forecast for oil. Major Asian currencies were also negative against eh green back.

Commodity Outlook:

Commodity Market was very weak in the morning session. Gold and Silver Prices lost ground in the morning session on firming dollar and profit taking. Crude Oil prices rebounded slightly in the morning session on bargain buying while Natural Gas traded modestly higher ahead of weekly supply data in USA. Base Metals remained weak in the morning session as global economic worries continues to haunt markets

Evening outlook:

Gold and Silver Prices are expected to remain range bound in the evening session; Crude Oil and Natural Gas are expected to show strength while Base metals could remain weak in the Evening session

Stock Recommendations:

Adani ports - Buy at Rs.278.1(CMP); Target - Rs.281.00; Stop Loss – Rs.275.00

TVS - Buy at Rs.250.65(CMP); Target - Rs.253.50; Stop Loss – Rs.248.00

Reliance Industries Ltd. - Buy at Rs.906.00(CMP); Target - Rs.916.00; Stop Loss – Rs.897.00

Sectors Snapshot

Bank Nifty – Bank Nifty witnessed volatile session with global factors weighing on financial stocks. Weakness was seen in private banks but as cabinet approved PSBs to hold minimum 52% govt. stake cut losses of banks with Bank Nifty recovering from day’s lows. CPI and IIP numbers were eyed.

CNX IT: IT stocks witnessed sharp correction today as global cues were largely negative. Tech stocks in US fell with benchmark NASDAQ falling more than 1.5%. Weakness in Rupee failed to trigger any major buying export oriented IT cos. ECB data was eyed for further cues on IT.

CNX Energy: Energy Sector lost over 200 points in the session today as fall in Oil prices continued to hurt the stocks in the sector. IOC was the only stock which also in green while ONGC was the biggest loser in the sector losing over 3%.

CNX Pharma: Index opened lower but managed to close in green as benchmark indices were seen and inflows were seen in Pharma stocks. Pharma industry November sales rose by 10.9%. Cadila Healthcare was the top gainer amongst the index.

Market Movers

Gainers

IDFC: Shares rose on news report which said the Russian Direct Investment Fund will team up with India’s IDFC to invest $1 billion in hydropower.

Tech Mahindra: Tech Mahindra has expanded its Bhubaneswar facility by adding a third block, which can house over 500 associates.

Losers

JSPL: Shares were seen falling in today' session after sharp rise in yesterday's session as company commissioned billet caster plant in Angul. Company is said to have issue with storing raw materials.

ONGC: Shares opened lower and continued to slip on account of falling crude prices. Profit taking was seen after rise of 2.5% in yesterday's session.

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