NIFTY REBOUNDS FROM THE VICINITY OF 10890 SUPPORT

NIFTY REBOUNDS FROM THE VICINITY OF 10890 SUPPORT

WORLD MARKETS

After a negative start, US indices saw a sustained northward move through the session to end with gains of 0.2%-0.6% following upbeat remarks from Federal Reserve Chairman Jerome Powell during his congressional testimony. Nasdaq hit a record high on the back of strong gains in Amazon and a rebound in Netflix.

Powell gave a positive assessment of the U.S. economy during his semiannual congressional testimony, indicating that gradual interest rate increases were warranted.

Johnson & Johnson, Goldman Sachs and Charles Schwab posted better-than-expected earnings.

The International Monetary Fund has cut its growth forecasts for the U.K. and the euro zone, warning that tensions in global trade have darkened economic prospects.

European markets gained 0.3%-0.8%. Basic resources stocks were the best performers. Unemployment numbers in the U.K. came in at 4.2%, its lowest level since 1975.

AT HOME

After a flattish start, Sensex and Nifty saw a sustained northward move through the session to end with gains of 0.5% and 0.6% respectively. Sensex added 196 points to settle at 36520 while Nifty finished at 11008, up 71 points. BSE mid-cap and small-cap indices gained 2.1% and 1.1% respectively, breaking four-day losing streak. Except 0.8% and 0.1% lower FMCG and IT indices respectively, all the BSE sectoral indices ended in green with Oil & Gas and Metal indices leading the tally, up 2.2% and 1.9% respectively.

FIIs net sold stocks and index futures worth Rs 674 cr and 376 cr respectively but net bought stock futures worth Rs 269 cr. DIIs were net buyers to the tune of Rs 840 cr.

Rupee appreciated 12 paise to end at 68.45/$.

ZEE Entertainment reported 31% jump in quarterly net profit at Rs 326 cr. Revenue rose 17% to Rs 1772 cr. EBITDA rose 16.8% to Rs 566 cr and margin was up at 31.9%. Domestic advertisement revenue rose 22% to Rs 1087 cr while subscription revenue was up 12% at Rs 425 cr. Overall ad revenue growth stood at 18%.

OUTLOOK

Today morning, Asian markets are trading with gains of SGX Nifty is suggesting about 40 points higher start for our market.

While Nifty was in a profit booking mode after testing a high of 11078 last week, we had advised holding on to long positions with the stop-loss of 10890 for the target of 11171.

Yesterday, Nifty, after touching a low of 10925, rebounded to end at 11008 and is set to open near 11050 today.

11078, the top made last week, is the immediate hurdle above which 11178, the top made in January, would be the next target to eye.

10890 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

Monsoon session of the Parliament begins today. Budget session was a complete washout and this session is also expected to be stormy with TDS and Congress planning to move a “no-confidence motion” against the government. Meanwhile around 25 bills, including Fugitive economic offenders’ bill, Triple talaq bill and Transgender person’s rights protection bill, are lined up for the approval of the Parliament.

Ultratech Cement will report its quarterly earnings today.