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

Dec 15, 2014   17:21 IST 
India

Nifty ends marginally down tracking global weakness, crude price

 

Indian benchmark indices witnessed a volatile session tracking weakness in global markets and falling crude oil prices. IIP numbers were released on Friday after markets kept the markets under pressure while CPI and WPI numbers kept financial stocks sentiments in positive. IT stocks were the major loser as TCS Q3 outlook is seen weak. HDFC and Kotak Mahindra were the major gainers in today’s session while DLF and BPCL were top loser among Nifty stocks. Currency was seen weakening as demand from petrochemical firms were seen rising. Other Asian markets remained under pressure due to falling crude prices and negative sentiments from Japan” , Mr. Kiran Kumar Kavikondala said.

 

Indian Markets

Indian benchmark indices witnessed a volatile session tracking weak global cues and weak domestic data released on Friday after the market hours However, WPI data released today which came at zero percent change year on year from 1.77% kept the financial stocks sentiments high. Falling crude kept the pressure under energy stocks raising concerns regarding global growth and demand. Weak IIP numbers posted kept the pressure on metal, cement and capital goods stock. European Indices were seen up as Energy companies gained on value buying supported domestic indices. Further Fed meet kept the investors cautious. Nifty was dragged by IT majors which were seen down as TCS Q3 outlook is seen weak with profit taking continues in Energy sector.

 

Other Asian Markets

Major Asian indices closed in red tacking weak global cues and fear in fall of oil prices. Declining manufacturing sentiments in Japan also weighed on indices. Crude was seen falling to five and half year low after IEA cut the outlook for demand. NIKKEI was down by more than 1.5% as Japan’s manufacturing index slipped to +12 from +13. However, Chinese index managed to erase its losses and SSE Composite managed to close in green while Hang Seng fell nearly one percent. KOSPI managed to close flat on expectations that the government may be lifting regulations to allow major super marts to operate on weekends.

 

Commodity Outlook:

Commodity Market was very volatile in the morning session; Gold and Silver Prices dipped in the morning session as fears of hate hike by the Fed resurfaced thus putting pressure on Bullion; Crude Oil prices rebounded slightly in the morning session on bargain buying while Natural Gas Prices surged on cool weather forecasts in USA. Base metals traded with positive bias in the morning session after hopes of economic stimulus in China.

 

Evening outlook:

Gold and Silver Prices are expected to remain weak in the Evening session; Crude Oil and Natural Gas prices are expected to rise while Base Metals could remain strong in the Evening session.

 

Stock Recommendations:

ONGC – Buy at Rs. 343.05(CMP); Target –Rs.347.00; Stop Loss –Rs.340.00

 

BPCL – Sell at Rs.636.35(CMP); Target –Rs.629.00; Stop Loss –Rs.643.00

 

Tata Motors - Buy at Rs.493.95(CMP); Target –Rs.499.00; Stop Loss –Rs.489.00

 

Sectors Snapshot

Bank Nifty – Banking Sector traded with positive bias in the session today despite the weakness shown by Nifty. Kotak Mahindra Bank was the biggest gainer in the sector on the news of Merger with ING Vysya Bank while PSU Banks also looked positive on speculations of disinvestment.

 

CNX IT: IT index opened lower and closed near its open price. Index fell over 1.5% on account of weak Q3 outlook posted by index heavyweight Tata Consultancy Services Ltd. Major IT companies were seen down over 3% tracking weak cues from TCS. Fall in rupee kept the downside limited.

 

CNX Energy: Energy Sector traded flat in the session today. Oil Producers lifted the sector as Crude prices ebounded today while OMCs dragged. ONGC was the top gainer in the sector gaining around 2% .

 

CNX Pharma: Pharma opened lower in today’s session and traded in a flat range. Aurobindo Pharma dragged the index down falling more than 2% on account of profit taking. Other major pharma stocks were also seen under pressure.

 

Market Movers

Gainers

HDFC: Shares rose after The Economic Times reported that Standard Life plans to raise its stake in its joint venture with the company, HDFC Standard Life Insurance Co, to 33% from 26%.

 

Kotak Mahindra: Shares hit life time high after ING Vysya bank said it will seek shareholders' approval for its merger with Kotak Mahindra Bank.

 

Losers

DLF: Shares continue to slip as SAT adjourns DLF case on SEBI orders barring company from securities market.

 

BPCL: Energy sector remained under pressure while Oil marketing companies were seen down. BPCL was the top loser due to slight rise in oil prices.

 

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