10638 CONTINUES TO BE IMMEDIATE HURDLE; 10550-10515 SUPPORT ZONE
After opening higher about half a percent on the back better-than-expected earnings from United Technologies, Verizon and Coca-Cola Dow and Nasdaq tumbled 1.7% each while S & P 500 fell 1.3% on rising interest rates and comments from Caterpillar that hinted economic growth may slow later in the year.
10-year treasury yield broke above 3% for the first time since January 2014.
Caterpillar plunged 6.2% after the CFO, during a conference call, said that the company's outlook assumed that the first quarter would be "the high watermark for the year." 3M nosedived 6.8% after the company lowered its full-year profit forecast. Alphabet topped bottom-line estimates but its stock declined more than 4.5%.
US oil fell 94 cents to $67.70 and Brent eased 85 cents to $73.86 a barrel after Trump said that the U.S. could soon reach an agreement with France that would preserve the 2015 Iran nuclear deal.
Sensex and Nifty gained 0.5% and 0.3% respectively to close at the highest level since 5th February. Senex settled 166 points higher at 34616 while Nifty added 30 points to finish at 10614. BSE mid-cap index flat while small-cap index fell 0.1%. BSE Energy and Oil & Gas indices climbed 2.4% and 1.5% respectively, becoming top gainers among sectoral indices while Metal and IT indices tumbled 1.8% and 1.7% respectively, becoming top losers.
FIIs net sold stocks and stock futures worth Rs 681 cr and 65 cr respectively but net bought index futures worth Rs 275 cr. DIIs were net buyers to the tune of Rs 509 cr.
Rupee appreciated 10 paise to end at 66.38/$, breaking its six-day losing streak.
Bharti Airtel reported 78% y-o-y dip in March quarter net profit at Rs 83 cr. Revenue fell 3% to Rs 19634 cr. EBIDTA fell 7% q-o-q to Rs 7034 cr and operating margin fell to 35.8% from 37.3%.
Today morning, Asian markets are trading with cuts in the vicinity of half a percent and SGX Nifty is suggesting about 50 poins lower start for our market.
In yesterday's report we had reiterated the view that 10638, the top made on Monday, which also coincides with the couple of tops made in February, is the immediate hurdle, a crossover of which is required for a fresh upmove. Yesterday, Nifty, after touching a high of 10637, closed at 10620 and is set to open below 10600 today.
10550-10515 is the immediate support zone, a breach of which would generate a sell on the hourly chart and would pave the way for further correction. 10638 continues to be immediate hurdle above which 10700, the 61.8% retracement level of the entire 11171-9951 fall, would be the next target to eye.
Traders are advised to hold long positions with the stop-loss of 10515.
Wipro will report its quarterly earnings today.