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

Nifty claims 8700, all time high; Infra and IT supports

“The vertical rally on Nifty post RBI rate cut continued today as well with Nifty claiming 8700 mark. Rupee showed strength against the greenback lifting Banking sector traded mixed with PSBs inching higher ahead of ECB with market participants anticipating a QE announcement by the central bank. Rebound on Wall Street in previous session was one factor which supported positive momentum on Indian benchmark indices today. IT stocks also saw some momentum with buying coming in after IT taking a breather in previous sessions. Metal stocks were down dragging the index while FMCG major ITC saw selloff after its posted its Q3 numbers. Cigarette volume growth hurt revenues with profit up by 10.5%. HUL though compensated some losses in FMCG sector by rallying more than 4%. On global front ECB, Greek elections and US Fed policy was awaited by market participants.,” Mr. Kiran Kumar Kavikondala said.

Indian Markets

The vertical rally on Nifty post RBI rate cut continued today as well with Nifty claiming 8700 mark. Rupee showed strength against the greenback lifting Banking sector traded mixed with PSBs inching higher ahead of ECB with market participants anticipating a QE announcement by the central bank. Rebound on Wall Street in previous session was one factor which supported positive momentum on Indian benchmark indices today. IT stocks also saw some momentum with buying coming in after IT taking a breather in previous sessions. Metal stocks were down dragging the index while FMCG major ITC saw selloff after its posted its Q3 numbers. Cigarette volume growth hurt revenues with profit up by 10.5%. HUL though compensated some losses in FMCG sector by rallying more than 4%. On global front ECB, Greek elections and US Fed policy was awaited by market participants.

Other Asian Markets

Asian markets closed on appositive note today with Nikkei bucking the trend after BoJ kept its bond buying program intact to target 2% inflation rate, selling was seen. Chinese indices closed higher as investors took positive cues from the Wall Street and ECB policy decision. Investors anticipated start of QE by ECB in its policy decision lifting the sentiment.

Commodity Outlook:

Commodity Market was very volatile in the morning session; Gold and Silver Prices inched higher ahead of ECB stimulus hopes and weak dollar. Crude Oil continued to slip in the morning session on supply concerns while Natural Gas prices gained nearly 5% due to colder weather forecasts in USA. Base Metals were range bound in the morning session ahead of ECB policy decision.

Evening outlook:

Gold and Silver Prices are expected to make more gains in the Evening session; Crude Oil and Natural Gas could trade positively while Base Metals are expected to rebound in the Evening session.

Stock Recommendations:

Apollo Hospitals - Buy at Rs. 1225.00 (CMP) ; Target – 1238.00; Stop loss – 1210.00

Biocon - Buy at Rs. 426.50 (CMP); Target – 432.00; Stop loss – 422.00

NTPC - Buy at Rs.143.50(CMP); Target -Rs.145.00; Stop Loss –Rs.142.00

Sectors Snapshot

Bank Nifty: Banking stocks traded mixed today with PSBs lifting the index while private banks taking a breather and witnessing mostly weak movement. ECB policy decision was eyed by investors while US Fed policy remained on radar for further cues on banking stocks. Strength in Rupee continued to support banks.

CNX IT: The momentum on IT stocks remained mixed today with a dismal advance decline ration on the index. Few major stocks saw continuing inflows. Infosys and HCL tech lifted the index after stellar Q3 performance while other major cos remained subdued. Strength in global tech stocks and stable Rupee supported IT today.

CNX Energy: Energy sector was flat in the morning session as crude oil prices resumed its slide; the stocks in the sector traded mixed while BPCL made some late gains to finish 1% up. ONGC and Cairn India, were weak in the session today.

CNX Pharma: Index opened slightly lower and managed to close in positive due to overall positive sentiments among the investors. However major inflows were seen under rate sensitive stocks and hence pharma space was seen trading weak.

Market Movers

Gainers

HUL: Shares continued its gains as brokerage houses remains positive over the stock after fall in previous sessions due to weak results posted by the company.

Bharti Airtel: Shares rose as company confirmed their deal with Nokia for 4G networks in six states. Shares gained over 3%.

Losers

ITC: Shares were down and top loser as the company' revenue and volume growth in its Oct-Dec earnings fell short of street estimates.

Cipla: Sharp profit taking was seen in the stock due to outflow from the stock and inflows were seen in rate sensitive stocks.

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