NIFTY CLOSES IN ON 10785 HURDLE

NIFTY CLOSES IN ON 10785 HURDLE

WORLD MARKETS

US indices soared 0.8%-1% as energy shares jumped on the back of a strong rally in oil prices.

U.S. oil rose 3% to settle at $71.14 per barrel and Brent soared 3.2% to reach $77.21, both hitting a 3-1/2 year high, after Trump, on Tuesday said that the U.S. would be walking away from the Iran deal and that sanctions on the Middle Eastern country would be reinstated..

The 10-year Treasury yield broke above the 3% and two-year note yield also traded at its highest level in nearly a decade.

European markets gained 0.2%-1.3% with FTSE on the top.

AT HOME

Sensex and Nifty gained 0.3% and 0.2% respectively to close at the highest level since 1st and 2nd February respectively. Sensex added 103 points to settle at 35319 while Nifty added 24 points to finish at 10741. BSE mid-cap and small-cap indices however fell 0.6% and 0.1% respectively. BSE IT and Teck indices rose 0.7% and 0.6% respectively, becoming top gainers among sectoral indices while Power index fell 0.6%, becoming top loser, followed by half a percent lower Utilities and Healthcare indices.

FIIs net sold stocks worth Rs 704 cr but net bought index futures and stock futures worth Rs 217 cr and 110 cr respectively. DIIs were net buyers to the tune of Rs 665 cr.

Rupee depreciated 18 paise to end at 67.26/$.

Eicher Motors reported strong, in-line with expected numbers. Profit, on the back of one-time loss of Rs 187 cr, was flat at Rs 461.5 cr. Revenue rose 34% to Rs 2528 cr. EBIDTA grew 36% to Rs 797 cr and margin rose 56 bps to 31.5%.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-1% and SGX Nifty is suggesting a flattish start for our market.

Nifty, after failing to clear the 10770 hurdle decisively, which is the two third retracement level of the entire 11171-9951 fall, has been in a consolidation mode. 10785-10600, the top and bottom made last week, are the boundaries of this consolidation phase, a crossover of which, on either side, is required for a fresh move. Above 10785, 10950 would be the next target to eye. Below 10600, 10515 would be the next support.

Asian Paints, Titan and ZEE Entertainment will report their quarterly earnings today.