9951 BELOW 10102; 10408 CONTINUES TO BE IMMEDIATE HURDLE

9951 BELOW 10102; 10408 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 2.4%-4.4% with technology stocks leading the losses. Dow and S & P 500 turned negative for the year.

Homebuilder stocks fell after data from Commerce Department showed new home sales fell to a two-year low, fuelling Worries about a slowing economy under pressure from rising interest rates. Bank shares fell on fears of slowing growth for mortgage and other loans.

US crude rose 39 cents to $66.82 a barrel on the back of a much bigger-than-expected drawdown in U.S. gasoline and diesel inventories. Bent however fell 27 cents to $76.17 a barrel.

Dollar index rose about half a percent to 96.36, its highest level in nearly 2-1/2 months.

European markets, except 0.1% higher FTSE, fell 0.3%-1.7% with Italy leading the losses.

AT HOME

Sensex and Nifty ended higher by 0.6% and 0.8% respectively after wild intraday swings to break four-day losing streak. Sensex settled at 34033, up 186 points while Nifty added 78 points to finish at 10224. BSE mid-cap and small-cap indices gained 1% and 0.7% respectively. BSE Telecom index soared 4.9%, becoming top gainer among the sectoral indices, followed by 2.2% higher Oil & Gas index. Healthcare and IT indices were the top losers, down 0.3% and 0.2% respectively.

FIIs net sold stocks worth Rs 2047 cr but net bought index futures and stock futures worth Rs 613 cr and 538 cr respectively. DIIs were net buyers to the tune of Rs 1873 cr.

Rupee appreciated 42 paise to end at 73.15/$.

Wipro reported better-than-expected earnings if one-offs are removed. Adjusted dollar revenue growth stood at 1.9% q-o-q while constant currency growth stood at 2.8%. Adjusted margins rose 250 bps to 18.1%. Company guided for 1-3% growth in IT Services revenue for Q3, which was in-line with market estimates.

Kotak Mahindra Bank reported in-line with estimated quarterly earnings with stable asset quality. Net profit rose 14.8% y-o-y to Rs 1142 cr while NII was up 16.3% at Rs 2689 cr. Gross NPA ratio improved 2 bps q-o-q to 2.15% and net NPA ratio fell 5 bps to 0.81%.

Bajaj Auto reported operationally weak performance. Revenue rose 21.4% to Rs 7987 cr, EBIDTA rose 3.5% to Rs 1343 cr, operating margin fell 300 bps to 16.8% and net profit was up 3% at Rs 1152 cr.

OUTLOOK

Today morning, Asian markets are trading with cuts of 2.3%-3.5% and SGX Nifty is suggesting about 100 points lower start for our market.

For past couple of sessions we have been mentioning that 10138, the bottom made on 11th October, is the immediate support, upon decisive breach of which 9951, the bottom made in March, would be the next downside target.

Nifty, on Tuesday, closed at 10146 after touching an intraday low of 10102 and yesterday extended the upmove by closing at 10225 but is set to open around 10125 today.

10102, the bottom made Tuesday, is the immediate support below which 9951, as mentioned above, would be the crucial support to eye.

10408, the top made on Monday, continues to be immediate hurdle.

Maruti and Bharti Airtel will report their quarterly earnings today.