9951 CONTINUES TO BE MAJOR SUPPORT; 10408 CONTINUES TO BE HURDLE

9951 CONTINUES TO BE MAJOR SUPPORT; 10408 CONTINUES TO BE HURDLE

WORLD MARKETS

US indices surged 1.6%-3% as tech stocks led the recovery from Wednesday's sell-off.

Microsoft reported earnings and revenue for the previous quarter that topped analyst expectations. Tesla posted a surprise profit. Twitter also posted better-than-expected results. AMD however plunged on issuing weak revenue guidance for the fourth quarter.

Dollar index rose a third of a percent to 96.60, it's highest level in more than two months.

European markets gained 0.6%-1.8%.  ECB left its benchmark interest rates unchanged. The bank also reiterated that net asset purchases by the ECB will sit at the current monthly pace of €15 billion euro until the end of December, when the central bank has said the buying will stop. Following the ECB announcement, Euro hit low of 1.1376, its lowest level since August 17.

US oil rose 51 cents to reach $67.33 a barrel while Brent added 77 cents to settle at $76.94.

AT HOME

Benchmark indices plunged a percent in today's trade to end at fresh 6-1/2 month low. Sensex lost 343 points to settle at 33690 while Nifty finished at 10124, down 100 points. BSE mid-cap and small-cap indices fell 0.6% and 1% respectively. All the BSE sectoral indices ended in red with Telecom and Realty indices leading the losses, down 2.9% and 1.8% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1496 cr, 2605 cr and 202 cr respectively. DIIs were net buyers to the tune of Rs 340 cr.

Rupee depreciated 15 paise to end at 73.28/$.

Yes Bank posted lower than expected earnings and deterioration in asset quality. Net profit fell 4% y-o-y to Rs 965 cr while NII rose 28.2% to Rs 2418 cr. Loan growth at 61% was highest ever. Gross NPA ratio rose 29 bps q-o-q to 1.60% and net NPA ratio rose 25 bps to 0.84%. Net interest margin remained unchanged sequentially at 3.3%. 3.3. Slippages surged to Rs 1632 cr from 562 cr.

Bharti Airtel, while reported a net profit of Rs 119 cr, the same was aided by deferred tax write back, stripped off which, the company would have reported a higher-than-expected loss. Revenue was up 1.7% q-o-q at Rs 20422 cr. EBIDTA fell 7.2% to Rs 6243 cr and margin fell 290 bps to 30.6%.

OUTLOOK

Amazon reported after the bell missed revenue estimate and also gave weak revenue guidance for Q4. Alphabet also reported after the market close and also missed revenue expectations. Owing to these earnings, US futures are down 0.4%-0.8%.

Today morning, Nikkei and Shanghai are up 0.4% and 0.2% respectively but Hang Seng is down 0.2%. SGX Nifty is suggesting a flattish start for our market.

Yesterday, Nifty, after touching a low of 10079, rebounded to close at 10125 and is set to open flat today.

9951, the bottom made in March, continues to be next important support to eye.

10410, the top made on Monday, continues to be immediate hurdle.

ITC, Dr Reddy and ICICI Bank will report their quarterly earnings today.