NIFTY EXTENDS CONSOLIDATION; SBI EARNINGS IN FOCUS

NIFTY EXTENDS CONSOLIDATION; SBI EARNINGS IN FOCUS

WORLD MARKETS                             

US indices gained 0.6% each, with all three key indices hitting record high, on the back of President Donald Trump saying he would soon announce a "phenomenal" tax plan in the next few weeks.

Weekly jobless claims fell by 12,000 to 234,000, below a consensus estimate of 250,000. Wholesale trade data for December showed a 1% increase in inventories.

Dollar index gained about half a percent to 100.67. US treasuries fell with the benchmark 10-year note yield rising to 2.39% and the two-year note yield around 1.18%.

WTI crude added 66 cents to $53 a barrel while Brent rose 51 cents to $55.63.

European markets added 0.6%-1.2%. French yields hit a two-week low amid growing political risk as far-right presidential candidate Marine Le Pen gains more traction.

AT HOME

After rising nearly half a percent in the opening trade, benchmark indices immediately plunged a percent from the top of the day but recouped quite a bit of the lost ground through rest of the session to end 0.1% higher. Sensex settled at 28330, up 40 points while Nifty added 9 points to finish at 8778. BSE mid-cap and small-cap indices gained 0.2% each. BSE IT and Teck indices soared 1.6% each, becoming top gainers among the sectoral indices while Metal index and Bankex were the top losers, down 0.7% and 0.5% respectively.

FIIs net bought stocks and index futures worth Rs 357 cr and 600 cr respectively but net sold stock futures worth Rs 165 cr. DIIs were net sellers to the tune of Rs 380 cr.

Rupee appreciated 26 paise to end at 66.93/$.

Lupin posted a 21% y-o-y increase in third quarter net profit at Rs 633 cr. Revenue rose 26% to Rs 4483 cr. EBIDTA margin stood at 27.1%.

OUTLOOK

Today morning Nikkei is up more than 2%, other Asian markets are trading with gains of upto 0.6% and SGX Nifty is suggesting about 30 points higher start for our market.

Nifty has been consolidating for past three session after touching a high of 8814 on Monday. Yesterday, the benchmark, after touching a high of 8821, slipped sharply to touch a low of 8724 but rebounded to end at 8778 and is set to open higher today.

8900-8970 region where the trendline adjoining tops made in March 2015 and September 2016 is placed, continues to be major upside target as well as the resistance to eye.

Immediate support on the hourly chart is placed around 8700, with the stop-loss of which existing longs can be held on to.

SBI, M & M, GAIL, Sun TV and BoB will report their quarterly earnings today.