NIFTY ACHIEVES 10100 TARGET; TRAIL STOP-LOSS TO 9955

NIFTY ACHIEVES 10100 TARGET; TRAIL STOP-LOSS TO 9955

WORLD MARKETS                             

US indices fell 0.1%-0.2% after major U.S. financials reported quarterly results.

JPMorgan Chase reported third-quarter earnings and revenue that beat analyst expectations. Fixed income trading revenue however, fell 27% y-o-y. Citigroup also posted better-than-expected quarterly results but concerns about rising credit costs drove the stock lower by more than 3%.

U.S. producer prices increased 0.4% on month and 2.6% y-o-y in September. Weekly jobless claims totaled 243,000, hitting a more than one-month low.

Treasury yields slipped with the two-year yield at 1.517% and the benchmark 10-year yield around 2.327%.

Brent crude fell 1.2% to settle at $56.25 a barrel and WTI lost 1.4% to settle at $50.6 after the International Energy Agency said that global stock builds, rising non-OPEC production and sluggish growth in demand could weigh on the oil price.

European markets ended mixed with modest changes. The pound initially slid on news of an impasse in Brexit negotiations, but later rose on a report that the U.K. could remain in the European Union for two more years. Data from France showed consumer prices were up 1.1% on the year in September, but 0.2% lower from the previous month.

AT HOME

Benchmark indices soared more than a percent to close at the highest level since 21st September, 2017. Sensex added 348 points to settle at 32182 while Nifty finished at 10096, up 112 points. BSE mid-cap and small-cap indices gained 1% and 1.2% respectively. All the BSE sectoral indices ended in green with Energy index leading the tally, up 2%, followed by 1.9% higher Telecom and Metal indices.

FIIs net sold stocks worth Rs 668 cr but net bought index futures and stock futures worth Rs 263 cr and 742 cr respectively. DIIs were net buyers to the tune of Rs 873 cr.

Rupee appreciated 5 paise to end at 65.09/$.

Indusind Bank reported 25% y-o-y growth in September quarter net profit at Rs 880 cr. NII jumped 24.7% to Rs 1821 cr. Gross NPA ratio improved to 1.08% from 1.09% sequentially while Net NPA ratio remained unchanged at 0.44%.

Retail inflation, measured by CPI, remained flat at 3.28% in September, as food prices remained steady, while fuel and housing prices witnessing modest growth during the month.

India’s industrial output grew sharply 4.3% in August, highest in nine months. The figure for July was revised lower to 0.9% from 1.2%.

TCS met expectations on dollar revenue front while margins were better-than-estimates. Net profit rose 2.1% q-o-q to Rs 6446 cr while revenue rose 3.2% to Rs 30541 cr. Dollar revenue rose 3.2% and constant currency growth stood at 1.7%.

OUTLOOK

Today morning, Nikkei is up 0.3% but Hang Seng and Shanghai are in the red. SGX Nifty is suggesting about 10 points lower start for our market.

In yesterday's report we had reiterated the view that 9920 is the immediate support, with the stop-loss of which, existing longs should be held on to.

Nifty yesterday soared 112 soared to end at 10096, achieving the 10100 target we had given after 10015 target was achieved.

10180, the top made in September, is now the next major target as well as the hurdle to eye. Immediate support on the hourly chart has moved up to 9955, with the stop-loss of which, existing longs should be held on to.

Reliance Industries will report its quarterly earnings today.