NIFTY BEACHES IMMEDIATE SUPPORT; 8400 NEXT SUPPORT, 8600 IMMEDIATE HURDLE

NIFTY BEACHES IMMEDIATE SUPPORT; 8400 NEXT SUPPORT, 8600 IMMEDIATE HURDLE

WORLD MARKETS                             

Dow plunged 1% while S & P 500 and Nasdaq lost 0.4% and 0.2% yesterday on the back of lackluster earnings from a few blue chips.

IBM plunged 6% after earnings per share and revenue fell 13% y-o-y. United Technologies tumbled 7% after the industrial conglomerate cut its full-year forecast. Verizon fell 2.35% as revenue came in below estimates. Apple ended 1% lower ahead of the earnings.

European markets fell 0.3%-1.3% with Italy leading the tally. Greece's stock exchange remained closed, while the local banks reopened on Monday for the first time in three weeks.

Dollar index fell nearly a percent. Nymex oil settled down 2 cents at $50.89 a barrel. Gold lost $3.3 to $1103.50 an ounce.

AT HOME

Benchmark indices plunged nine tenth of a percent yesterday, registering the steepest fall after 8th July. Sensex plunged 238 points to settle at 28182 while Nifty finished at 8529, down 74 points. BSE mid-cap and small-cap indices tumbled 1.4% and 1.6% respectively. Except a 4.6% and 3.8% rise in BSE IT and Teck indices respectively, all the sectoral indices ended in red with Healthcare index leading the tally, nose-diving 5.9%, followed by 2.2% cut in Realty index.

FIIs net sold stocks and stock futures worth Rs 227 cr and 13 cr respectively but net bought index futures worth Rs 1256 cr. DIIs were net buyers to the tune of Rs 146 cr.

Rupee appreciated 12 paise to end at 63.54/$.

Sun Pharma plunged after the company said that the consolidated revenues for FY16 would remain flat or show a decline over FY15 and that consolidated profits may also be adversely impacted due to certain expenses/charges arising out of Ranbaxy integration as well as remedial actions."

Infosys surged after reporting better-than-expected 4.5% q-o-q growth in dollar revenue at USD 2256 mn for the April-June quarter. The company also upped its FY16 dollar revenue guidance by 100 bps to 7.2-9.2%.  In rupee terms, revenue rose 7% to Rs 14354 cr while profit fell 2.2% to Rs 3030 cr. Volume growth stood at 5.4%, the highest in last 19 quarter.

HUL reported lower-than-expected 0.2% y-o-y growth in net profit at Rs 1059 cr. Total income from operations grew by 5% to Rs 8105 cr. Volume growth stood at 6%. Operating margin expanded by 150 bps to 18.6%, beating the estimated 17.9% figure.

HDFC Bank reported in-line-with-estimates 20.7% rise in net profit at Rs 2696 cr. NII rose 23.5% to Rs 6389 cr. Net interest margin stood at 4.3%. Gross NPAs rose 2 bps sequentially to 0.95%. Net NPAs rose to 0.35% from 0.25%.

Asian Paints reported better-than-expected 34.4% jump in net profit at Rs 455 cr while revenue grew by 7.8% to Rs 3623 cr. Operating margin expanded by 210 bps to 18.8%.

Idea Cellular posted 1% q-o-q dip in net profit at Rs 931 cr which was better-than-estimates. Revenues rose 4.5% to Rs 8798 cr. EBIDTA margin improved 30 bps to 36.7%. Average revenue per user improved marginally to Rs 182 from 181.

The monsoon session of Parliament got off to a chaotic start yesterday as the Rajya Sabha witnessed multiple adjournments with the opposition demanding the resignations of External Affairs Minister Sushma Swaraj and chief ministers Vasundhara Raje and Shivraj Singh Chouhan over the controversies surrounding them.

The Lok Sabha paid tributes to a sitting member and 13 former MPs who died in the recent past on the first day of the Monsoon session today, following which the House was adjourned without transacting any business.

OUTLOOK

Today morning Asian markets are trading with cuts of upto a percent and SGX Nifty is suggesting about 30 points lower opening for our market.

Yesterday, Nifty, after touching a fresh recent high of 8647 in the morning trade, plunged sharply to end at 8529. In the process, it broke the immediate support on hourly chart, which had moved up to 8550 in yesterday's trade.

Next support on the way down is 8400 where a trendline adjoining recent bottoms on the daily chart as well as 200 DMA are placed. Immediate resistance on the hourly chart is placed at 8600, with the stop loss of which trading shorts can be initiated for the target of about 8400.