NIFTY EXTENDS CONSOLIDATION; STAY LONG WITH THE STOP-LOSS OF 8600

NIFTY EXTENDS CONSOLIDATION; STAY LONG WITH THE STOP-LOSS OF 8600

WORLD MARKETS

                                                             

After a negative start, US indices saw a sustained northward move through the session to end mixed with Dow finishing 0.1% lower, S & P 500 ending flat while Nasdaq closed 0.3% higher.

IBM contributed the most losses, offsetting gains from McDonald's and Microsoft. Microsoft hit a new all-time high after posing better-than-expected results across the board. General Electric beat estimates on earnings but revenue was a miss. It also narrowed its 2016 earnings per share guidance.

Dollar index climbed to 98.63 fom 98.33, hitting a seven-month high. Chinese yuan hit its lowest level versus the U.S. currency dating back to 2010.

U.S. crude rose 0.43% to $50.8 per barrel. According to data from Baker Hughes, rig counts in the U.S. rose by 11 to 443, marking the 17th straight week without a cut.

European markets endex mixed with modest changes. Euro fell to a seven-month low of 1.0873 from 1.0929 per dollar following Mario Draghi's refusal on Thursday to give any legs to recent speculation policymakers may opt to begin tapering of the bank's 1.7 trillion-euro asset purchase program in the near-term.

For the week, Dow ended flat, S & P 500 added 0.4% while Nasdaq gained 0.8%. In Europe, FTSE was up 0.1%, DAX climbed 1.2% and CAC added 1.5%. Among Asian markets, Shanghai rose 0.9%, Hang Seng was up 0.6% while Nikkei soared 2%.

AT HOME

After falling about half a percent, benchmark indices recouped most of the losses in last hour to end just marginally lower. Sensex settled at 28077, down 53 points while Nifty lost 6 points to finish at 8693. BSE mid-cap and small-cap indices however added 0.3% and 0.1% respectively. BSE Consumer Durable and Energy indices fell 1.7% and 0.8% respectively, becoming top losers among the sectoral indices while Realty and IT indices were the top gainers, putting on 0.9% and 0.7% respectively.

FIIs net sold stocks and stock futures worth Rs 273 cr and 268 cr respectively but net bought index futures worth Rs 24 cr. DIIs were net buyers to the tune of Rs 500 cr.

Rupee depreciated 8 paise to end at 66.89/$.

For the week, Sensex and Nifty gained 1.4% and 1.3% respectively.

HCL Tech reported good set of earnings. Dollar revenue rose 1.8% to USD 1772 mn and rupee revenue was up 1.6% at Rs 11519 cr. Constant currency revenue growth stood at 2.8%. Net profit fell 1.9% to Rs 2015 but was better-than-expected. The company has reiterated its FY17 constant currency guidance at 12-14% and EBIT guidance to 19.5-20.5%.

ACC disappointed on all counts. Topline fell 10% to Rs. 2521 cr. Net profit fell 29% to Rs 82 cr. Volumes were down 9.6% y-o-y at 5.07 mn tones. EBIDTA per tonne fell 6% to Rs. 443. Realizations were down 1%.

Wipro reported earnings which slightly beat estimates but guidance was a miss. Dollar revenue fell 0.8% q-o-q to USD 1916 mn but grew 0.9% in constant currency terms which was at the higher side of the 0-1% guidance range. EBIT margin remained unchanged at at 17.8%. The company guided for a 0-2% revenue for for October-December quarter, which was lower than expectations of 1-3% growth.

OUTLOOK

Today morning, Asian markets are trading mixed with changes of upto half a percent on both the sides and SGX Nifty is suggesting a flattish start for our market.

8750-8800 continues to be important hurdle area as 8750 is where 34-DMA as well as a trendline adjoining recent tops on the daily chart are placed while 8800 is the top made on the surgical strike day.

8600 continues to be immediate support on the hourly chart, with the stop-loss of which trading longs can be held on to.

Axis Bank and Idea will report their quarterly earnings today.