NIFTY ACHIEVES 11160 TARGET; TRAIL STOP-LOSS TO 10860

NIFTY ACHIEVES 11160 TARGET; TRAIL STOP-LOSS TO 10860

WORLD MARKETS

Dow and S & P 500 rose 0.6% and 0.2% respectively while Nasdaq fell 0.8% as Energy stocks gained while tech stocks eased.

Chevron and Exxon Mobil surged 7% and 5%, respectively, as oil rose to its highest level since March. On the other hand Facebook, Amazon Apple, Netflix and Google-parent Alphabet all closed lower.

Meanwhile coronavirus related hospitalizations continue to surge in 34 states across the United States. Texas and Florida hit a record Monday for daily coronavirus deaths based on a seven-day moving average.

Shares of Snap and United Airlines dipped in extended trading on the back of disappointing earnings.

Brent crude rose $1.37, or 3.2%, to $44.65 while WTI crude gained 2.8%, or $1.15, to settle at $41.96 per barrel, the highest level since March.

European markets gained 0.1%-1%. EU leaders reached a deal on a 750 billion euro recovery fund to help the region recover from the coronavirus crisis.

Lifted by an agreement on a fiscal rescue plan by European leaders and expectations for additional spending by the U.S. government, Gold futures rose $26.50, or 1.5%, to settle at $1,843.90 an ounce, a near 9-year high. Silver closed at the highest level since 2014.

AT HOME

Bull Stampede continued as Sensex and Nifty soared 1.4% and 1.3% respectively, extending the winning streak to fifth consecutive day and closing at the highest level since 5th March. Sensex settled at 37930, up 511 points while Nifty added 140 points to finish at 11162. Broader market however underperformed as BSE mid-cap index fell 0.2% while small-cap index rose just 0.2%. Energy and Oil & Gas indices climbed 2.7% each, becoming top gainers among the sectoral indices while Telecom index slipped 1.8%, becoming top loser, followed by 0.7% lower FMCG index.

FIIs net bought stocks and index futurs worth Rs 2266 cr and 857 cr respectively but net sold stock futures worth Rs 643 cr. DIIs were net sellers to the tune of Rs 727 cr.

Rupee appreciated 17 paise to end at 74.75/$.

Shares of Oil Marketing Companies rose amid reports of global companies showing interest in BPCL stake.

AXIS Bank reported better-than-expected numbers. Net profit fell 18.8% y-o-y due to lower fee income and higher provisions. NII rose 19.5%, its best in 5 quarters. Gross NPA ratio improved to 4.72% from 4.86% q-o-q and stood at 15 quarter low. Net NPA ratio improved to 1.23% from 1.56%. Slippages, at Rs 2218 cr, were the lowest in 17 quarters. Watchlist stood at Rs 10753 cr v/s Rs 10996 cr. Moratorium book fell to 9.7% from 25-28%.

HUL's Q1 volume, net profit, revenue and EBITDA came in above estimates while operating margin were in-line. Volume contracted by 8% v/s expected decline of 11-13%. Gross margin dipped by 220 bps y-o-y.

Bajaj Finance reported a 19% y-o-y fall in consolidated net profit at ₹962 crore for the first quarter of the current fiscal on higher provisioning. Net interest income rose 12% to Rs 4152 cr.  Gross NPA ratio improved to 1.4% from 1.61% q-o-q while Net NPA ratio improved to 0.50% from 0.54%.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.8% and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 11160, where an upward sloping trendline adjoining recent tops on the daily chart is placed, would be the next target to eye and had advised holding on to long positions with the stop-loss of 11780.

Nifty soared to touch a high of 11179 before closing at 11162, achieving 11160 target and vindicating our view.

11225 is the next upside target to eye.

Immediate support on the hourly chart has moved up to 10860, with the stop-loss of which, trading longs should be held on to.

L & T and Bajaj Auto will report their quarterly earnings today.