NIFTY ACHIEVES 10180 TARGET; TRAIL STOP-LOSS TO 10280

NIFTY ACHIEVES 10180 TARGET; TRAIL STOP-LOSS TO 10280

WORLD MARKETS                             

US indices fell 0.1%-0.3% on worries over global growth and the progress of U.S. tax reforms.

GE extended Monday's fall by plunging 6% yesterday to reach lowest level since 2011.

Chinese data released on retail sales, industrial output and fixed asset investment growth all missed expectations.

In economic news, the U.S. producer price index rose 0.4% in October as against expectation of a 0.1% rise.

Brent crude lost 1.5% to settle at $62.21 per barrel and U.S. crude fell 1.9% to settle at $55.70 after the International Energy Agency reduced its projection for oil demand for this year and the next.

European markets ended with cuts of upto 0.6%. Basic resources fell the most following disappointing data from China. Germany's third quarter GDP growth at 0.8% topped the 0.6% estimate.

AT HOME

Benchmark indices fell nearly a third of a percent to end at three-week low. Sensex lost 92 points to settle at 32942 while Nifty finished at 10187, down 38 points. BSE mid-cap and small-cap indices fell 0.2% each. BSE Capital Goods and Telecom indices fell 1.4% and 1.3% respectively, becoming top losers among sectoral indices while Realty and Consumer Durable indices were the top gainers, up 0.7% and 0.6% respectively.

FIIs net bought stocks worth Rs 2577 cr but net sold index futures and stock futures worth Rs 821 cr and 1866 cr respectively. DIIs were net sellers to the tune of Rs 1 cr.

Rupee appreciated 1 paise to end at 65.41/$.

Sun Pharma reported better-than-expected numbers. Net profit fell 60% y-o-y to Rs 1002 cr and sales fell 15% to Rs 6590 cr. Margins were down from 38.3% to 20.7% but recovered from multi-quarter low to 17%. There was no comment on Halol plant however.

Bank Of Baroda reported improvement in asset quality along with good advance growth. Net profit fell 35% Y-o-y to Rs 355 cr. Gross NPA ratio improved to 11.16% from 11.4% q-o-q and net NPA ratio fell to 5.05% from 5.46%. Fresh slippages were down 41% to Rs 2586 cr. Net interest margin improved to 2.31 from 2.29%.

Trade deficit in October soared to a 3-year high of $14 bn as exports fell 1% to 23 bn.

India's wholesale inflation grew to 3.59%, hitting a six-month high in October, due to increase in prices of food and fuel products. In September, WPI stood at 2.6%.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.3%-0.8% and SGX Nifty is suggesting about 30 points lower start for our market.

Just to reiterate, we had given downside targets of 10250 and 10180 after immediate support of 10380 was taken out. Nifty, after achieving first target on Monday, extended the fall yesterday to touch a low of 10175 before closing at 10186, achieving the second target and vindicating our view.

However, Nifty is expected to open below 10180 today and in that case we will have to search for next support levels. 10160 is where 34-DMA is placed, making it the next important support. If that gives way, 10090 and 9995, which are the 50% and 61.8% retracement levels of the entire 9690-10490 upmove, would be next downside targets to eye.

Meanwhile, immediate resistance on the hourly chart has moved lower to 10280, with the stop-loss of which, trading shorts should be held on to.