11078-10890 CONTINUES TO BE IMMEDIATE RANGE

11078-10890 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices fell 0.4%-0.5% amid U.S. President Trump's criticism of the Federal Reserve.

Trump, in a media interaction, said that he was "not thrilled" with the central bank hiking interest rates.

Dollar index, after touching a one-year high of 95.65, eased to 95.16 on Trump's comments. 10-year treasury yield slipped to 2.84% from a high of 2.90%. Bank shares fell broadly as interest rates declined.

IBM reported earnings and revenue that surpassed expectations. American Express posted a profit that was just above estimates, while sales came in slightly below estimates. Ebay posted revenue and guidance that disappointed while earnings topped estimates.

US crude rose 1% to settle at $69.46

European Union Trade Commissioner said the EU is making a list of goods it could target as a way to retaliate against potential tariffs on European cars by the US.

European markets, except 0.1% higher FTSE, fell 0.3%-0.6%. Basic resources were down the most, tracking lower metal prices, as worries about the Chinese economy persist.

AT HOME

Sensex and Nifty fell 0.1% and 0.2% respectively to extend losing streak to second day. Sensex lost 22 points to settle at 36351 while Nifty finished at 10957, down 23 points. BSE mid-cap and small-cap and small-cap indices fell 0.6% and 1% respectively. BSE Capital Goods and Healthcare indices tumbled 1.8% and 1.2% respectively, becoming top losers among the sectoral indices while Consumer Durable and Energy indices were the top gainers, up 1% and 0.6% respectively.

FIIs net sold stocks worth Rs 316 cr but net bought index futures and stock futures worth Rs 1080 cr and 110 cr respectively. DIIs were net buyers to the tune of Rs 470 cr.

Rupee plunged 43 paise to end at lifetime low of 69.05/$.

Hindalco fell on news reports that it is likely to acquire Aleris for USD 2.5 billion and the company and its Canadian arm, Novelis, is in process of raising debt for the said deal.

Kotak Mahindra Bank plunged after net profit and NII growth missed estimates. Net profit rose 12.3% to Rs. 1025 cr. NII grew by 15%, the slowest in 8 quarters, to Rs 2583 cr. Asset quality remained stable with Gross NPA ratio improving to 2.17% from 2.22% q-o-q and Net NPA ratio improving to 0.86% from 0.98%.

Bajaj Finance reported better-than-expected 83% growth in net profit at Rs 833.7 cr while NII was up 23.5% at Rs 2578 cr. NII rose 46% to Rs 2578 cr. Asset quality remained stable with gross non-performing assets (NPA), as a percentage of total loans, falling 9 basis points sequentially to 1.39%. Net NPA ratio, however, rose marginally to 0.44% from 0.38%.

OUTLOOK

Today morning, Main Asian markets are trading with cuts of 0.3%-0.4%. SGX Nifty is suggesting about 25 points lower start for our market.

After hitting a high of 11078 last week, Nifty has been in a consolidation mode. As we have been mentioning, 10890 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

11078 continues to be immediate hurdle, upon crossover of which, 11178 would be the next target to eye.

Lok Sabha will today debate and vote on the "No-Confidence motion" moved by the opposition. As against 268 votes required to win the motion, BJP as 305 certain votes, which should help it sail easily.

Bajaj Auto and Wipro will report their quarterly earnings today.