NIFTY SET TO ACHIEVE 11171 TARGET; TRAIL STOP-LOSS TO 11050

NIFTY SET TO ACHIEVE 11171 TARGET; TRAIL STOP-LOSS TO 11050

WORLD MARKETS

US indices gained 0.7%-1.2% with Nasdaq leading the tally and also hitting a record high.

Trump, after meeting with European Commission President Jean-Claude Juncker, said that the US and EU would start negotiations immediately on a number of areas that include working toward "zero tariffs" on industrial goods, and further cooperation on energy issues.

US oil jumped 1.1% to settle at $69.30 a barrel on the back of a big drop in US crude inventories. Brent rose 49 cents to $73.93.

European markets fell 0.1%-1% with Italy leading the losses.

Facebook reported after the bell and posted weaker-than-expected daily active users for last quarter and said revenue growth would decline sequentially in the second half of this year. The stock was down more than 20% in afterhours trading.

AT HOME

Benchmark indices ended little changed after trading in a narrow range through the session. Sensex settled at 36858, up 33 points while Nifty lost 2 points to finish at 11132. BSE mid-cap index fell 0.1% while small-cap index rose 0.2%. BSE Power and Realty indices tumbled 1.5% and 1.3% respectively, becoming top losers among the sectoral indices while Metal and Finance indices were the top gainers, up 0.8% and 0.5% respectively.

FIIs net sold stocks and index futures worth Rs 1196 cr and 207 cr respectively but net bought stock futures worth Rs 3 cr. DIIs were net buyers to the tune of Rs 98 cr.

Rupee appreciated 16 paise to end at 68.78/$.

L & T's results were an all-round beat. Net profit surged 36% to Rs 1215 cr while revenue was up 18.8% at Rs 28283 cr. EBITDA climbed 40.4% to Rs 2913 cr and margins expanded 160 bps to 10.3%. Consolidated order book stood at 2.71 lac cr as on June 30. Company maintained its FY19 order inflow guidance at 10%-12% and revenue guidance at 12-15%.

Hero MotoCorp missed street estimates on all counts. Net profit fell 0.5% y-o-y to Rs 909 cr. Revenue rose 10.4% to Rs 8810 cr, EBITDA was up 6.3% at Rs 1377 cr and margin fell 60 bps to 15.6%. Realisation per unit fell 3.3% to Rs. 41853.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 35 points higher start for our market.

At the risk of repeating, we have been positive on Nifty since immediate hurdle of 10730 was taken out on 4th July and have been advising holding on to long positions with a trailing stop-loss. On last count, when 11078 hurdle was taken out, we had given upside targets of 11171 followed by 11230.

Nifty yesterday ended at 11132 and is likely to open near the 11171 target today. As mentioned above, upon crossover of 11171, 11230 would be the next target to eye.

Immediate support on the hourly chart has moved up to 11050, with the stop-loss of which, trading longs should be held on to.

ITC, Maruti, Bharti Airtel, Dr Reddy and Yes Bank will report their quarterly earnings today.