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

Nifty ends near 8700; Metals and realty drags.

“Indian equity markets witnessed sell off during last hour of the trade after rising during initial hours. The strength was drawn from the slight bullishness ahead of Union Budget but soon global factors overwhelmed domestic equities leading to a fall. Nifty closed at 8711 points led by fall in energy and metal stocks. As global oil prices could not sustain recently discovered up move, major energy stocks lost momentum and dragged the index. Metal stocks were down as Chinese markets were down on back of profit booking and weak global cues. More stimuli was expected from the Chinese Central Bank which kept the momentum subdued on metal stocks. On the global front the major factor keeping world markets under pressure was ECB’s action to restrict direct credit lines to Greece. ” , Mr. Kiran Kumar Kavikondala said.

Other Asian Markets

Asian indices were mostly down as Wall Street failed to provide any strong start to equities today. Nikkei fell close to 1% while more expectations from China’s PBoC kept momentum weak on SSE composite. ECB action to restrict credit to Greece was further seen dragging the major indices.

Commodity Outlook:

Commodity Market was very volatile in the morning session; Gold and Silver Prices dipped in the morning session on profit taking but concerns over PBOC and Greece kept their downside limited; Crude Oil Prices rebounded slightly in the morning session after the crash yesterday while Natural Gas Prices also remained positive in the morning session; Base Metals slipped in the morning session and sentiment was weak due to concerns over Greece.

Evening outlook:

Gold and Silver are expected to rebound in the Evening session; Crude Oil and Natural Gas are expected to remain range bound while Base Metals could make slight gains in the Evening session.

Currency

Rupee was seen trading weak against the USD due to weak domestic market. ECB's surprise announcement on re impose of minimum credit requirements for Greece bonds kept Euro under pressure. USD index rose due to spike in US yields. US nonfarm pay roll is eyed

Stock Recommendations:

L&T - Sell at Rs.1682.4(CMP); Target -Rs.1665.00; Stop Loss –Rs.1700.00

DLF - Sell at Rs.169.4(CMP); Target -Rs.167.50; Stop Loss –Rs.171.50

ONGC – Buy at Rs.356.65(CMP); Target -Rs.361.00; Stop Loss –Rs.353.00

Sectors Snapshot

Bank Nifty: Banking stocks continued to show weakness. Weakness in Rupee, weak sentiment in equity markets and negative cues from global markets dragged banks. Q3 results also weighed on index. Greece debt situation and ECB decision to restrict credit line to Greece affected banking stocks today. Domestic inflation data was eyed.

CNX IT: IT index witnessed strong inflows today. Q3 numbers of major cos along with NASCOMM growth projection directed inflows to IT today. Weakness in Rupee also supported the index. Export oriented major IT cos were up leading the rally on CNX IT.

CNX Energy: Energy sector lost over 100 points in the session due to crash in crude oil prices; BPCL kept the downside limited for the sector by gaining over 4% while all other companies crashed around it.

CNX Pharma: Index opened up but could not sustain the gains as profit taking was seen in major stocks. Aurobindo Pharma fell over 4.5% after posting results below estimates which dragged the index down followed by Cadila Healthcare. However, fall in rupee limited the downside.

Market Movers

Gainers

BPCL: Shares rose after they another discovery of light oil in Brazil, while Brent prices remained stable in today's session.

HCL Tech: Shares rose after the company announced the opening of its newest global delivery centre in the US state of Texas employing 300 people initially.

Losers

Tata Power:  Profit taking was seen in today's session after the stock rose over 3% in previous session due robust Q3 earnings posted by the co.

JSPL: Shares fell after rise in previous session as the Q3 results were seen in line with the expectation. Metal space was seen weak in today's session.

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