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

Nifty at all-time high, Obama visit lifted sentiments

“Indian markets rallied today on euphoria and as FII inflows continued. RBI rate cute remained a continuing booster for equities today with Nifty claiming 8900 mark. Global factors were side lined by market participants today as big bang announcement were expected in budget for FY16 leading to a pre-budget rally. On global front Greece election shadowed markets but soon ECB QE shadowed concerns. Private Banks continued to lead index while some profit taking was seen in IT and pharma stocks. Infra and realty remained in focus after Modi emphasized on need for strong investments in infrastructure. Obama visit to India was seen as positive for trade between the two countries. US Fed is seen as next big cue for market while tone of RBI governor on inflation and further rate easing will be watched early next month ahead of budget.” , Mr. Kiran Kumar Kavikondala said.

Indian Markets

Indian markets rallied today on euphoria and as FII inflows continued. RBI rate cute remained a continuing booster for equities today with Nifty claiming 8900 mark. Global factors were side lined by market participants today as big bang announcement were expected in budget for FY16 leading to a pre-budget rally. On global front Greece election shadowed markets but soon ECB QE shadowed concerns. Private Banks continued to lead index while some profit taking was seen in IT and pharma stocks. Infra and realty remained in focus after Modi emphasized on need for strong investments in infrastructure. Obama visit to India was seen as positive for trade between the two countries. US Fed is seen as next big cue for market while tone of RBI governor on inflation and further rate easing will be watched early next month ahead of budget.

Other Asian Markets

Asian markets were seen trading mixed in today’s session as Greece worries were seen fading. However, Chinese markets were seen bucking the trend as industrial profits showed an 8% slump. NIKKEI hit all time high due to falling Yen to 118. KOSPI was up due to value buying in energy counters which rose by 0.82%.

Commodity Outlook:

Commodity Market remained flat in the morning session; Gold and Silver dipped in the morning session due to profit taking and strong Equity Markets; Crude Oil continued to stay at lower levels while Natural Gas rebounded from lows due to cold weather outlook in USA; Base metals showed signs of strength in the morning session due to strong Equity Markets and bargain buying at lower levels.

Evening outlook:

Gold and Silver are expected to remain weak in the Evening session; Crude Oil and Natural Gas are expected to trade positive in the Evening session while Base Metals are expected to make further gains in the Evening session.

Stock Recommendations:

PC Jewelers- Buy at Rs. 253.3 (CMP) ; Target – Rs.257.00; Stop loss – 250.00

Maruti Suzuki - Buy at Rs.3688.00(CMP); Target -Rs.3725.00; Stop Loss –Rs.3651.00

ITC – Buy at Rs.360.15(CMP); Target -Rs.364.00; Stop Loss –Rs.357.00

Sectors Snapshot

Bank Nifty: Bank Nifty gained nearly 500 points in the session today led by private sector heavyweights HDFC Bank, Axis Bank and ICICI Bank while Public Banks traded from flat to negative. Positive sentiment continues to prevail among investors as some key results are expected in the coming days.

CNX IT: Index opened up in today’s session but however erased all the gains to due to profit taking as inflows were seen in cyclical stocks due to positive sentiments remain in the market. Rupee was seen weakening which kept the downfall limited.

CNX Energy: Energy Sector traded flat in the morning session despite the record highs created by Nifty as weak global Crude Oil Prices hampered their momentum. Most of the companies in the sector closed from flat to positive while Cairn India dragged the Index losing nearly 4%.

CNX Pharma: Pharma index also showed positive sentiments as the markets opened and managed to close in positive as defensives were seen trading weak. Dr. Reddy’s was the top loser sliding 4% due to weakness in Russian rouble.

Market Movers

Gainers

Axis Bank: Shares of the company rose on account positive sentiments within the market participants after Obama visit to India.

Cipla: Shares ended up on news that the company will supply a generic equivalent drug of Nexium to Teva Pharmaceutical Industries.

Losers

Dr. Reddy’s: Profit taking was seen and shares fell over 4% due to weakness in Russian rouble was seen.

GAIL India: Shares fell today as Brent crude oil prices fell to $48.08 per barrel on NYMEX. Energy space traded weak today.

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