TRAIL STOP-LOSS TO 17950

 

TRAIL STOP-LOSS TO 17950

 

WORLD MARKETS

 

After rebounding from initial dip, Dow ended absolutely flat while S & P 500 and Nasdaq gained 0.3% and 0.7% respectively.

 

Minutes from the September Fed meeting showed that the central bank could begin the tapering process in mid-November or mid-December.

 

September CPI rose 0.4% month-on-month and 5.4% y-o-y, compared to estimated figures of 0.3% and 5.3% respectively. Core CPI, which excludes food and energy, rose 0.2% month over month and 4% y-o-y, compared to estimates of 0.3% and 4%, respectively.

 

JPMorgan shares fell 2.6% despite reporting earnings that exceeded expectations.

 

US 10-year treasury yield fell 3.8 bps to 1.542%. However, yields on shorter-term treasuries, increased. Dollar index pulled back 0.35% to 94.195. Spot gold climbed 1.6% to near four-week high of $1,788 per ounce.

 

Brent futures settled 24 cents, or 0.3%, lower at $83.18 per barrel while WTI crude dipped 20 cents, or 0.25%, to end the day at $80.44 per barrel.

 

European markets gained 0.2%-0.8%. U.K. GDP grew 6.9% y-o-y in August, slightly outstripping a forecast of 6.7%.

 

Trade data from China showed exports beat expectations but import growth disappointed in September.

 

AT HOME

 

Sensex and Nifty surged 0.9% and 0.8% respectively, extending the winning streak to fifth consecutive day and hitting fresh record highs. Sensex added 452 points to settle at 60737 while Nifty finished at 18161, up 170 points. Nifty mid-cap index soared 1.5% but the small cap index ended flat. Except 0.2% lower Realty index, all the BSE sectoral indices ended higher, with Auto and Utilities indices leading the tally, up 3.5% and 2.6% respectively.

 

FIIs net bought stocks and index futures worth Rs 937 cr and 1205 cr respectively but net sold stock futures worth Rs 51 cr. DIIs were net sellers to the tune of Rs 432 cr.

 

Rupee appreciated 14 paise to end at 75.36/$.

 

Infosys results beat estimates and the company also upgraded FY22 revenue guidance . Dollar revenue rose 5.7% q-o-q and EBIT margin stood at 23.55%. FY22 guidance was upped to 16.5-17.5%.

 

Wipro results too were better on revenue and margins front. Dollar revenue rose 6.85% and constant currency revenue growth stood at 8.1%. EBIT margin stood at 17.8%. Q3 guidance was in-line with estimate at 2-4%.

 

OUTLOOK

 

Today morning, Nikkei is up 0.9% while Hang Seng and Shanghai are down 1.4% and 0.2% respectively. SGX Nifty is suggesting around 90 points higher start for our market.

 

In yesterday's report we had said that 18100-18150 was the next target zone for Nifty and had advised trailing the stop-loss in long positions to 17800.

 

Nifty surged to 18197 before closing at 18161 and is set to open near 18250 today.

 

18400-18450 is the next target zone; Immediate support on the hourly chart has moved up to 17950, with the stop-loss of which, trading longs can be held on to.

 

HCL Tech will report its quarterly earnings today.