ROLLER COASTER RIDE CONTINUES
US indices, after a modestly higher start, gave away all the gains through the session to ended little changed as investors remained wary of climbing bond yields and flat retail sales for April.
Retail sales, ex-autos, rose just 0.1%, below estimates of a 0.5% gain. Following the retail sales data, JPMorgan lowered its expectations for second-quarter real annualized GDP growth to 2% from 2.5%.
The U.S. 10-year Treasury yield edged up to 2.28%, while the 30-year traded near 3.07%.
U.S. dollar continued to weaken, declining 1% yesterday while the euro topped $1.13. Gold climbed $26 to $1218 an ounce, its highest settle since April 6. Nymex oil fell 25 cents to $60.50 a barrel.
European markets ended mixed. While FTSE and Italy gained 0.2% and 0.5% respectively, DAX and CAC lost 1% and 0.2% respectively. GDP growth figures for the euro zone showed expansion of 0.4% for the first quarter of 2015, below market estimates, but better than in the U.S. France's economy was shown gathering pace, but Greece was back in a technical recession.
Benchmark indices ended higher by a percent and third after a roller-coaster trading session. Sensex gained 374 points to settle at 27251 while Nifty finished at 8235, up 108 points. BSE mid-cap and small-cap indices gained 1.6% and 0.9% respectively. Except a 0.3% cut in BSE Realty index, all the sectoral indices ended higher with Bankex leading the tally with 2.6% gain, followed by 1.8% rise in Capital Goods index.
FIIs net sold stocks and index futures worth Rs 71 cr and 649 cr respectively but net bought stock futures worth Rs 428 cr. DIIs were net buyers to the tune of Rs 254 cr.
Rupee appreciated 17 paise to end at 64/$.
Lupin reported worse-than-expected 1.1% dip in consolidated profit at Rs 547 cr. Revenues were almost flat at Rs 3054 cr. EBITDA, during the quarter, was down 5.3% to Rs 765.3 crore versus Rs 808 crore while operating profit margins (OPM) also slipped 25.1% compared to 26.5% on a yearly basis.
The Cabinet yesterday approved a comprehensive New Urea Policy 2015 for the next four fiscals with multiple objectives of maximizing indigenous urea production and promoting energy efficiency in urea units to reduce the government's subsidy burden by Rs 4800 cr annually.
Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 10 points lower start for our market.
In an extremely volatile trading session yesterday, Nifty plunged nearly 2% from the top made in first hour, only to recover all the lost ground by the closing to end higher by 1.3%.
Key support and resistance levels to eye now are 7997 and 8333 respectively, which are the immediate previous bottom and top respectively on the daily chart. A crossover of 8333 will confirm a higher-top and higher-bottom formation on the daily chart along with a cup & handle formation on the hourly chart and would pave the way for the further upside till about 8600.
Traders are advised to wait for the crossover of these two boundaries for taking a fresh view on Nifty.
April WPI will be released today and is expected to show a reading of -2.07% as against -2.33% in March.