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

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

“Indian markets rallied today with Nifty touching 8700. Rally continued for straight four sessions led by surprise rate cut by RBI. The rally was led by banking and metal stocks. RBI asking banks to review their minimum lending rate in every three months was seen directed towards passing effects on rate cut onto consumers. This was seen as a major reason for up move in banks. Rupee also remained stable supporting the up move and inflows. Metal stocks rebounded after Chinese GDP for Q4 came slightly above estimates though dismal at 7.3% growth. Global oil prices rebounded in previous session though it remained weak today inflows were seen in energy stocks. Globally, Greek elections, US Fed policy meet later this month and largely anticipated ECB QE was eyed which would provide further cues on continuing FII inflows in Indian markets.” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian markets rallied today with Nifty touching 8700. Rally continued for straight four sessions led by surprise rate cut by RBI. The rally was led by banking and metal stocks. RBI asking banks to review their minimum lending rate in every three months was seen directed towards passing effects on rate cut onto consumers. This was seen as a major reason for up move in banks. Rupee also remained stable supporting the up move and inflows. Metal stocks rebounded after Chinese GDP for Q4 came slightly above estimates though dismal at 7.3% growth. Global oil prices rebounded in previous session though it remained weak today inflows were seen in energy stocks. Globally, Greek elections, US Fed policy meet later this month and largely anticipated ECB QE was eyed which would provide further cues on continuing FII inflows in Indian markets.

Other Asian Markets

Asian markets were seen positive today tracking positive cues from US markets, while China’s GDP data beats the estimate which came at 7.3% which led Chinese markets to rally in today’s session. Japan’s NIKKEI continued to extend gains on back of rise in yen which was seen rising above 118. KOSPI was seen up as major blue chip companies robust performance was seen. Market participants also waited possible ECB QE.

Commodity Outlook:

Commodity Market was very volatile in the morning session. Gold and Silver Prices surged further in the morning session on safe haven demand and increased buying in China. Crude Oil Prices remained range bound in the morning session while Natural Gas prices were flat in the morning session due to uncertain weather forecasts in USA. Base Metals traded on the downside in the morning session after weak Chinese GDP data.

Evening outlook:

Gold and Silver are expected to lose some steam in the Evening session; Crude Oil and Natural Gas are expected to be positive while Base Metals are also expected to rebound in the Evening session.

Stock Recommendations:

SBIN - Sell at Rs. 318.15(CMP) ; Target - Rs. 315.00; Stop loss- Rs. 321.00

L&T - Sell at Rs. 1629.55(CMP); Target - Rs. 1600.00; Stop loss - Rs. 1650.00

Reliance - Buy at Rs.903.05(CMP); Target -Rs.913.00; Stop Loss –Rs.894.00

Sectors Snapshot

Bank Nifty: Banking stocks rallied today as financial stocks saw Bull Run today. RBI asked banks to review their minimum lending rate in every three months which supported the rally and helped stock markets move up. ECB QE was eyed market participants keeping overall sentiment positive.

CNX IT: IT stocks were slightly subdued today as investors were seen directing flows towards metals and banking stocks. Though index hovered in positive in a strong market major up move was restricted by profit taking after recent run up in major IT cos. Rupee remained stable failing to provide any substantial cues for IT stocks today.

CNX Energy: Energy Sector gained over 100 points in the session today as positive mood in the Nifty prevailed and Crude Oil retained its gains. The stocks in the sector traded mixed while Reliance was the biggest gainer in the sector gaining over 2.5%.

CNX Pharma: Index opened higher and in a narrow range due to lack of any major triggers. Most of the inflows were seen in rate sensitive stocks. With slight depreciation in rupee, pharma stocks ended marginally up. Cadila healthcare was the top gainer among the index.

Market Movers

Gainers

HDFC: Shares of the company were seen trading high today on expectation of rise in demands for home loans after rate cut by RBI.

SSLT: Shares of the company gained over 5% on reports that the company may restart mining in Goa within two weeks.

Losers

Gail India: Shares fell after rise in yesterday’s session due to profit taking and continued fall in oil prices kept it under pressure.

TATA Power: Share prices fell as profit taking was seen and inflows were seen moving in rate sensitive stocks. Stock was down by 0.85%.

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