Friday, May 13, 2016




Dow and S & P 500 ended almost flat after a roller-coaster session while Nasdaq, weighed down by healthcare and technology stocks, ended with cut of half a percent.

Apple fell 2% for its lowest level since June 2014.

US oil recovered from an intraday dip to settle 47 cents higher at $46.70 a barrel while Brent gained 48 cents to finish at $48.08.

In economic news, weekly jobless claims rose to 294,000. Import prices rose 0.3% in April, while export prices rose 0.5%.

Dollar index gained about half a percent.

European markets lost upto 1.1% with DAX leading on the way down. A sharp fall of 2 to 3 percent in the price of several metals caused basic resources to fall 2.4% as a sector

BoE voted unanimously to keep its main interest rate on hold at 0.5% and also warned of risks to the U.K. economy if the country chooses to leave the European Union, this June.

After gaining about nine tenth of a percent in the initial trade, benchmark indices gave away all the gains, only to recoup most of them in late noon trade to end higher by about seven tenth of a percent. Sensex settled at 25790, up 193 points while Nifty added 52 points to finish at 7900. BSE mid-cap and small-cap indices gained 0.7% and 0.9% respectively. Except a marginal dip in BSE Capital Goods index, all the sectoral indices ended in green with Consumer Durable index leading the tally with gain of 1.4%, followed by 1.1% uptick in IT and Realty indices.

FIIs net bought stocks, index futures and stock futures worth Rs 24 cr, 420 cr and 340 cr respectively. DIIs were net buyers to the tune of Rs 258 cr.

Rupee depreciated 6 paise to end at 66.62/$.

Dr Reddy reported 86% dip in Jan-March quarter net profit at Rs 74.6 cr, hurt by one-time Venezuela write-off to the tune of Rs 431 cr. Total income slipped 3% to Rs 3756 cr. Consolidated adjusted EBIDTA at Rs 900 cr and margin at 24% were better-than-estimates.

India's retail inflation, as measured by the consumer price index for April, rose to 5.39% from a six-month low of 4.83% in March on higher food and fuel prices. Core CPI too edged up to 4.9% from 4.75%.

Industrial output, measured by index of industrial production rose just 0.1% in March as against an uptick of 2% in the previous month due to poor performance of manufacturing and mining sectors coupled with sharp decline in output of capital goods.

MSCI, in its semi-annual review has added Bajaj Finance, Havells, Titan and yes Bank to MSCI India Index while moving Rcom, REC and United Breweries to samll cap index. Global Small Cap India index has seen 23 additions and 8 deletions. Key inclusions include AshokaBuldcon, AB Fasion, Aegis logistics, Balrampur Chini, BoI , CanaraBank, V-Guard, Supreme ind, Chennai Petro, Coffee Day, Essel Propack, HFCL, Jubilant Life, KPR Mills, Mahindra CIE Automotive, Navkar Corp, PNC Infra, SH Kelkar, Spicejet and Canfin homes.


Today morning, except a marginally higher Shanghai, other Asian markets are trading with cuts of upto a percent with Nikkei leading the losses and SGX Nifty is suggesting about 40 points lower opening for our market.

We had asked going long on Nifty after immediate hurdle of 7780 was taken out on last Friday for the target of 7990, which is the top made in April. The benchmark has since then moved up and touched a high of 7916 yesterday.

7980-7890 continue to be upside target to eye. Immediate support on the hourly chart has moved up to 7810, with the stop loss of which trading longs should be held on to.

Bank of Baroda and Cadila will report their quarterly earnings today.

Other data to watch out today would be US retail sales for April which is either going to confirm things really are weak or the employment number and the GDP number was temporary weakness.

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