10070 ABOVE 9928; STAY LONG WITH THE STOP-LOSS OF 9792
US indices gained 0.3%-0.6% to close at fresh record high.
Morgan Stanley reported better-than-expected second-quarter results across the board. IBM plunged more than 4% after reporting mixed quarterly results, with earnings per share topping expectations but sales declining for the 21st straight quarter.
Housing starts jumped 8.3% last month, hitting their highest level since February. Mortgage applications rose 6.3%.
U.S. Treasury yields rose, with the benchmark 10-year note yield near 2.27% and the two-year yield around 1.36%.
European markets added 0.2%-0.8%
After a positive start, benchmark indices added some more weight through the session to end higher by about three fourth of a percent. Sensex soared 244 points to settle at 31955 while Nifty finished at 9900, up 72 points. BSE mid-cap and small-cap indices climbed 1% each. All the BSE sectoral indices closed in green with Telecom and Metal indices leading the tally, up 3.1% and 2% respectively.
FIIs net bought stocks and index futures worth Rs 1047 cr and 206 cr respectively but net sold stock futures worth Rs 50 cr. DIIs were net sellers to the tune of Rs 12 cr.
Rupee appreciated 4 paise to end at 64.28/$.
The Union Cabinet yesterday gave an in-principle approval to the proposed acquisition of government’s 51.1% stake in HPCL by ONGC, which will result in HPCL becoming a listed ONGC subsidiary. However, SEBI may exempt the latter from making an open offer to buy another 26% stake from the public.
Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting a flattish start for our market.
In yesterday's report we had mentioned that 9792, the bottom made on Tuesday, is now the immediate support, with the stop-loss of which trading longs should be held on to.
Yesterday, Nifty in fact opened higher and added more weight through the session to end 72 points higher at 9900.
9928, the top made on Monday, is the immediate hurdle to eye, a crossover of which is required for a fresh upmove. If that happens, 10070 would be the next target to eye.
Meanwhile, traders can continue to hold existing longs with the stop-loss of 9792.
Reliance Industries, Wipro, Bajaj Auto and Kotak Mahindra Bank will report their quarterly earnings today.
ECB, in its policy meeting today, is widely expected to stay put on interest rates. Key thing to eye however would be whether it would announce changes to its bond-buying plan in September.