NIFTY BREAKS IMMEDIATE SUPPORT; STAY SHORT WITH STOP-LOSS OF 10450
Dow ended marginally in the green, S & P 500 ended flat while Nasdaq fell 0.3% yesterday
Brent crude fell 0.9% to settle at $63.69 a barrel and WTI crude shed 0.3% to settle at $57.20.
European markets fell 0.2%-0.8%
Benchmark indices nosedived nearly a percent, suffering the biggest fall since September 27. Sensex lost 360 points to settle at 33371 while Nifty finished at 10350, down 102 points. BSE mid-cap and small-cap indices tumbled 1.5% and 1.4% respectively. Except 2.1% and 1.2% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red with Healthcare index leading the tally, down 3.5%, followed by 2.2% lower Realty index.
FIIs net bought stocks worth Rs 461 cr but net sold index futures and stock futures worth Rs 768 cr and 905 cr respectively. DIIs were net sellers to the tune of Rs 2046 cr.
Rupee depreciated 35 paise to end at 65.03/$. 10-year bond yield closed at 6.927%, their highest in 6-months.
Lupin share nosedived after company's formulation manufacturing facilities at Goa and Indore (Pithampur Unit II) received warning letter from USFDA.
Cipla reported better-than-expected consolidated profit growth of 17.7% at Rs 435 cr. Revenue rose 8.8% to Rs 4082 cr. EBITDA grew by 18.2% to Rs 804 crore and margin expanded 160 basis points to 19.7%.
BHEL reported lower-than-expected 5.9% y-o-y rise in net profit at Rs 115.4 cr driven by other income of Rs 485 cr. Revenue fell 5.8% to Rs 6168 cr. On EBIDTA level, company reported a loss Rs 95 cr.
Today morning, Asian markets are trading with modest cuts and SGX Nifty is suggesting a flattish start for our market.
In yesterday's report we had said that the immediate support on the hourly chart has moved up to 10380, which should serve as the stop-loss for trading longs.
Nifty nosedived 102 points points to finish at 10350, breaking this support.
Upon breach of 10340, the low made yesterday, the correction is likely to get momentum and 10250-10200 would be the next downside target as well as the support area to eye.
Immediate resistance on the hourly chart is placed around 10450, with the stop-loss of which, trading shorts should be held on to.
Ashok Leyland, Bharat Forge, Arvind and Petronet will report their quarterly earnings today.