NIFTY HOLDS 8300 SUPPORT ONCE AGAIN; 8375 IS THE IMMEDIATE HURDLE
US indices ended modestly lower yesterday following a 6.5 percent plunge in Chinese shares and amid a lack of resolution on Greek debt talks.
Shanghai bourse posted its biggest one-day loss since January 19 on the back of news that more Chinese brokerages are tightening margin lending rules, spurring fears that the retail investor-driven rally may be coming to an end.
Regarding Greece, IMF Managing Director Christine Lagarde told a German newspaper that a Greek exit from the euro zone was possible but that this would probably not herald the end of the euro currency.
European officials said there was some way to go before any agreement could be drawn up and that they were surprised by the upbeat comments from Greece that it had stated crafting a "staff level agreement" with its international bailout supervisors and that a deal should be reached by Sunday.
European markets, except a 0.1% higher FTSE, lost between 0.4%-0.9%.
After falling nearly three fourth of a percent, benchmark indices recouped most of the losses in the second half to end a fifth of a percent down. Sensex settled at 27507, down 58 points while Nifty lost 16 points to finish at 8319. BSE mid-cap and small-cap indices lost 0.5% and 0.2% respectively. BSE Consumer Durable and IT indices gained 1.3% and 0.7% respectively, becoming top gainers among the sectoral indices while Healthcare index lost 1.3%, becoming the top loser, followed by 0.5% cut in Bankex.
FIIs net sold stocks and stock futures worth Rs 793 cr and 646 cr respectively but net bought index futures worth Rs 651 cr. DIIs were net buyers to the tune of Rs 683 cr.
Rupee appreciated 21 paise to end at 63.80/$.
BPCL reported better-than-estimated 30% fall in March quarter net profit at Rs 2853 cr. Total income fell 31.3% to Rs 51346 cr. Gross refining margins stood at USD 3.62 per barrel against 4.33/bbl y-o-y.
Hindalco reported worse-than-expected 36% y-o-y fall in March quarter net profit at Rs 159.5 cr, impacted by exceptional item, higher finance cost and tax outgo. Turnover rose 11% to Rs 9371 cr.
ONGC reported worse than expected 19.5% fall in quarterly profit at Rs 3935 cr. Total income grew by 1.6% to Rs 21647 cr. Operating margin fell 790 bs to 35.2%.
Today morning except a 0.7% lower Shanghai, other Asian markets are trading with modest gains and SGX Nifty is suggesting about 15 points lower opening for our market.
In yesterday's report we had reiterated that 8320-8300 continues to be immediate support area and traders would do well to wait for the close below 8300 for taking fresh negative view on Nifty.
The benchmark, after touching a low of 8270, rebounded to end at 8319, holding 8300 support on closing basis.
We would like to reiterate above mentioned view. On the way up 8375 is the immediate hurdle, a sustained trading above which would generate a buy on the hourly chart and can take benchmark to around 8490, the top made last week.
India's GDP data for the fourth quarter of FY15 will be released today and is expected to show a reading of 7.2%, down from 7.5% in Q3.
M & M and Sun Pharma will report their quarterly earnings today.