Tuesday, May 30, 2017



WORLD MARKETS                             

US markets were shut yesterday for Memorial Day.

Oil rose marginally with WTI up 19 cents at $49.99 and Brent up 14 cents at $52.29 per barrel.

In Europe, while FTSE was shut, DAX gained 0.2% but Italy plunged 2% after weekend reports indicated that a general election could take place as early as September and the anti-establishment and euroscpetic five star movement could come out stronger. The British pound recovered after falling last week following polls showing U.K. Prime Minister Teresa May's lead had narrowed ahead of a snap election next week.

ECB President Mario Draghi, addressing the European Parliament, acknowledged growth in the euro zone but said "an extraordinary amount of monetary policy support" remained "necessary."


Benchmark indices managed to end with modest gains, extending the winning streak to third straight day and notching a fresh record high. Sensex added 81 points to settle at 31109 while Nifty finished at 9605, up 10 points. BSE mid-cap and small-cap indices however ended with deep cuts of 1% and 1.5% respectively. BSE FMCG index climbed 1.6%, becoming top gainer among the sectoral indices, followed by 0.3% higher Auto index. Realty index nosedived 4.4% and was the top loser, followed by 2.8% lower Healthcare index.

FIIs net sold stocks and stock futures worth Rs 710 cr and 299 cr respectively but net bought index futures worth Rs 1208 cr. DIIs were net buyers to the tune of Rs 291 cr.

Rupee depreciated 5 paise to end at 64.49/$.

L & T reported higher-than-expected net profit on the back of steep fall in cost and higher revenue but operational performance was weaker and the company also missed its own revenue and order inflow guidance for the fiscal year. Net profit rose 28.1% y-o-y to Rs 3180 cr. Income from operations rose 12% to Rs 36828 cr. Operating profit fell 3.6% to Rs 4335 cr and margin contracted by 190 bps to 11.8%. Order intake for the quarter rose 9.6% to Rs 47289 cr. Consolidated order book stood at Rs 2.61 lakh crore as of March 2017, higher by 5% on year-on-year basis. Company guided for a 12% revenue growth for FY18 and also declared 1:2 bonus.

BHEL reported 57% fall in net profit at Rs 215 cr. Revenue fell 7.2% to Rs 9688 cr. EBIDTA plunged 51% to Rs 649 cr and margin slipped 600 bps to 6.7%.


Markets in Hong Kong and China are closed today for a public holiday. Other Asian markets are down 0.3%-0.5% and SGX Nifty is suggesting about 20 points lower start for our market.

We have been working with target of 9700-9720 after 9530 hurdle was taken out.

Nifty, after touching a high of 9638, ended at 9605 yesterday and is set to open lower today.

Immediate support on the hourly chart has moved up to 9475, with the stop-loss of which trading longs should be held on to.

M & M and Hindalco will report their quarterly earnings today.  

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