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

Nifty marches towards 8300 led by IT, Infosys Q3 beats estimates

“Indian equity markets witnessed a very volatile session today with Infosys posting its Q3 results. Infosys posted 5% rise in its PAT while 3.4% growth in revenues. The stock was lifted more than 5% with major IT cos also following the trend. IT index gave a stellar performance today and led recovery on Nifty towards 8300. Bank Nifty dragged the index ahead of IIP and inflation data expected on Monday. Strength in Rupee provided little support to banking stocks while rebound in global oil prices lifted ONGC and Reliance rallying. Further inflows were also seen in Pharma stocks. Wall Street rallied in previous session providing strong cues to Asian markets supporting Nifty today though jobs data in US was eyed by investors with European markets trading cautiously after gaining in previous session.  Nifty took support at 8200 ahead of Infosys results and retail inflation and IIP numbers are seen providing further market direction. ” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian equity markets witnessed a very volatile session today with Infosys posting its Q3 results. Infosys posted 5% rise in its PAT while 3.4% growth in revenues. The stock was lifted more than 5% with major IT cos also following the trend. IT index gave a stellar performance today and led recovery on Nifty towards 8300. Bank Nifty dragged the index ahead of IIP and inflation data expected on Monday. Strength in Rupee provided little support to banking stocks while rebound in global oil prices lifted ONGC and Reliance rallying. Further inflows were also seen in Pharma stocks. Wall Street rallied in previous session providing strong cues to Asian markets supporting Nifty today though jobs data in US was eyed by investors with European markets trading cautiously after gaining in previous session.  Nifty took support at 8200 ahead of Infosys results and retail inflation and IIP numbers are seen providing further market direction.

Other Asian Markets

Major Asian indices took positive cues from global markets and strong close on Wall Street in previous session. Nikkei closed in green while SSE gave up gains and closed in red. Some rebound in oil was seen which also helped the sentiment. US jobs data was awaited keeping overall sentiment in equities cautious.

Commodity Outlook:

Commodity market was very weak in the morning session; Gold and Silver Prices dipped ahead of US jobs data and strength of Equity Markets; Crude Oil Prices continued to fall on supply glut while Natural Gas traded flat after bullish supply data in USA; Base Metals continued to remain weak in the morning session on weak Chinese demand.

Evening outlook:

Gold and Silver are expected to remain cautious ahead of US jobs data; Crude Oil and Natural Gas are expected to make gains while Base Metals are expected to trade flat in the evening session.

Stock Recommendations:

Reliance Industries Ltd. – Buy at Rs. 860.30(CMP); Target -Rs. 870.00; Stop Loss –Rs. 851.00

Bharat Forge - Buy at Rs. 929.05(CMP); Target -Rs. 940.00; Stop Loss –Rs. 920.00

Federal Bank - Buy at Rs. 149.25(CMP); Target -Rs. 151.00; Stop Loss –Rs. 147.50

Sectors Snapshot

Bank Nifty: Bank Nifty traded in pressure today with investors turning cautious on PSBs ahead of retail inflation and IIP data expected on Monday and results season that starts for banking. Strength in Rupee and positive momentum in global markets helped limiting losses on Bank Nifty.

CNX IT: Infosys Q3 results beat street expectations today with PAT rising 5% and 3.4% growth in revenues, Infosys led CNX IT with other major stocks following trend and listing the index further. Major stocks saw strong buying with mid caps also performing today.

CNX Energy: Energy sector gained around 100 points in the session today as Investors betted on rebound in crude oil prices; Most of the stocks in the sector closed in positive while ONGC was the biggest gainer in the sector gaining more than 2.5%.

CNX Pharma: Index opened higher and saw positive movement throughout the session. Index surged over 1.5% supported by Aurobindo Pharma which gained on account of rise in FII's stakes and Dr. Reddy's HC grants 2 week on Maharashtra license suspension.

Market Movers

Gainers

HUL: Shares rose after several leading brokerages upgraded the stock this week on expectation of improvement in margins.

Infosys: Share prices hit one month high gaining over 5% as company reported better than expected earnings for Oct-Dec.

Losers

DLF: DLF was the top loser among the Nifty stocks as profit taking was seen in this space after Nifty recovered in yesterday's session due to short covering.

NTPC: Shares fell after the company cancelled its over 2000 Cr. deal with Russia's state-owned Techno prom Export at Barh in Patna district

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