NIFTY NEARLY ACHIEVES 11550 TARGET; 11700 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY NEARLY ACHIEVES 11550 TARGET; 11700 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 0.6%-1.3%, with the S & P 500 and Nasdaq hitting record closing highs, on the back of stronger-than-expected corporate earnings.

Coca-Cola and United Technologies rose 1.7% and 2.3% respectively while Twitter surged 15.6% after reporting better-than-expected quarterly earnings. Defense giant Lockheed Martin also rallied more than 5% after its earnings easily topped expectations. Procter & Gamble also posted stronger-than-forecast earnings, but its stock closed down 2.7%.

US oil rose 75 cents to $66.30 a barrel while Brent rose 53 cents to $74.57, both hitting fresh six-month high, as they continued their ascent after U.S. President Trump’s administration announced on Monday that it will not extend sanctions waivers to countries that import Iranian oil. 

In Europe, FTSE surged 0.8% while DAX and CAC ended modestly higher.  Italian index however fell 0.3% as banking stocks fell sharply after official figures revealed a worsening picture for the country’s government debt. Data published by the European Commission on Tuesday showed consumer confidence in the euro zone fell in April.

AT HOME

Benchmark indices ended lower by a fifth of a percent after a choppy session, extending the losing streak to third consecutive day. Sensex lost 80 points to settle at 38564 while Nifty finished at 11576, down 18 points. BSE mid-cap index ended flat while small-cap index fell 0.1%. BSE Telecom and Auto indices tumbled 1.4% and 1.3% respectively, becoming top losers among the sectoral indices while Energy and Consumer Durable indices were the top gainers, up 1.2% and 1% respectively.

FIIs net sold stocks worth Rs 237 cr but net bought index futures and stock futures worth Rs 1794 cr and 193 cr respectively. DIIs were net buyers to the tune of Rs 198 cr.

Rupee appreciated 5 paise to end at 69.62/$.

ACC reported lower-than-expected results. Revenue rose 8% y-o-y, margins at 13.5% were flat while volume growth stood at 5.6%.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.5% and SGX Nifty is suggesting about 20 points higher start for our market.

After Nifty broke the immediate support of 11660, we had given downside target of 11550. Nifty yesterday touched a low of 11564, coming in very close to this target, before closing at 11575, and is set to open around 11600 today.

11550, the bottom made on 11th April, continues to be important immediate support to eye. If that gets breached, 34-DMA, placed around 11475, would be the next support to eye.

11700 continues to be immediate hurdle, a crossover of which is required for a fresh upmove.

Indiabulls Housing and Ultratech Cement will report their quarterly earnings today.