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

Nifty ends above 8550, Wipro surges 6% post Q3 results

“Indian equity markets remained lifted today backed by positive sentiment after RBI surprise rate cut last week. Q3 earnings were in focus. Overall sectoral movement among Nifty stocks remained mixed. Wipro posted Q3 results in line with expectations which lifted the stocks while other major stocks saw some profit booking after recent rally. Banking stocks were also mixed with major stocks closing in positive post trade deficit data and appreciation in Rupee against USD. Rupee sustained below 62 mark which provided strength to equity markets. HUL saw selloff by investors after it posted weak Q3 earnings. Infra sector again led the index while defensives such as pharma stock saw inflows as cyclical investments remained capped today. Chinese markets weakened and aw sharp selloff for which effect was seen on metal stocks. ” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian equity markets remained lifted today backed by positive sentiment after RBI surprise rate cut last week. Q3 earnings were in focus. Overall sectoral movement among Nifty stocks remained mixed. Wipro posted Q3 results in line with expectations which lifted the stocks while other major stocks saw some profit booking after recent rally. Banking stocks were also mixed with major stocks closing in positive post trade deficit data and appreciation in Rupee against USD. Rupee sustained below 62 mark which provided strength to equity markets. HUL saw selloff by investors after it posted weak Q3 earnings. Infra sector again led the index while defensives such as pharma stock saw inflows as cyclical investments remained capped today. Chinese markets weakened and aw sharp selloff for which effect was seen on metal stocks.

Other Asian Markets

Gains in Asian indices on back of strong close on Wall Street were capped by sharp selloff in Chinese financial stocks. SSE composite saw selloff after regulators charged several brokers. TH brokers were charged with illegal activities in margin trading post which financials saw bloodbath in Chinese equity markets.  While other indices saw gains Chinese GDP data for Q4 expected tomorrow was awaited by market participants.

Commodity Outlook:

Commodity Market was very volatile in the morning session. Gold and Silver continued to make gains in the morning session as they retained the significance of safe haven buy among investors. Crude Oil Prices dipped in the morning session ahead of Chinese GDP data while Natural Gas Prices also fell over 4% due to uncertain weather forecasts in USA. Base Metals were volatile and traded on the downside in the morning session due to weakness in Chinese Markets.

Evening outlook:

Gold and Silver Prices are expected to range bound in the Evening session; Crude Oil and Natural Gas are expected to remain weak while Base Metals are also expected to trade cautiously in the Evening session.

Stock Recommendations:

Bharat Forge - Sell at Rs.1019.25(CMP); Target -Rs.1008.00; Stop Loss –Rs.1030.00

BPCL - Buy at Rs.645.20(CMP); Target -Rs.653.00; Stop Loss –Rs.639.00

Kotak Mahindra - Buy at Rs.1389.45(CMP); Target -Rs.1405.00; Stop Loss –Rs.1375.00

Sectors Snapshot

Bank Nifty: Banking stocks were mostly up with major private bank stocks lifting the index. Strength in Rupee today helped inflows to continue into banking after RBI rate cut last week. PSB on the other hand saw some profit booking with majors such as BSI closing in red. US Fed policy decision was awaited by investors.

CNX IT: Wipro lifted the index after its Q3 results which were in line with expectations while other major IT cos saw profit booking after its recent rally thus dragging the index. IT index closed in negative as global factors also weighed and inflows were seen directed to pharma sector.

CNX Energy: Energy sector continued to gain in the session today closing more than 60 points higher due to recovery in global crude oil prices. All companies expect BPCL closed in positive in the sector while GAIL India was the biggest gainer in the sector gaining over 3%.

CNX Pharma: Index opened higher and traded with positive bias due to stock specific movements was seen. Most of the stock traded in positive. Lupin gained today after the company announced allotment of shares. Sun Pharma was seen up as PWC is hired to monitor the company’s merger with Ranbaxy.

Market Movers

Gainers

Wipro: Shares were seen up after the company posted robust Q3 earnings on Friday. Shares opened 6.5% up and closed at 584.20.

Gail India: Shares rose after Chairman and Managing Director told a news channel it may not have to pay subsidy to OMC's for Q3 and Q4 and as well as for next fiscal.

Losers

HUL: Shares fell over 5% after posting weak Q3 results. Disappointing volume was growth was seen which grew at 3% below estimates of 5-6%.

BPCL: Share prices fell today as the oil prices were seen under pressure after a slight rebound. It was one of the top losers among the Nifty constituents.

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