7487 CONTINUES TO BE IMMEDIATE HURDLE; 7360 IMMEDIATE SUPPORT

7487 CONTINUES TO BE IMMEDIATE HURDLE; 7360 IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices, supported by rise in oil and surge in Facebook share, gained 0.5%-0.9% yesterday.

On speculation that major producers may cooperate to cut production, Nymex oil rose 92 cents or 2.85% to $33.22 a barrel for its first three-day win streak of 2016. Brent gained $1.14 to $34.24. Russian Energy Minister said that Saudi Arabia had proposed to cut oil production by up to 5% by each country in order to support weak oil prices

Facebook soared 15.5% after reporting better-than-expected earnings, with the firm beating the $1 billion mark in quarterly net income for the first time ever. Caterpillar gained 4.7% after profit beat estimates.

Durable goods fell 5.1% in December, far more than expectations for a less-than 1% decline. Weekly jobless claims came in at 278,000. Pending home sales rose just 0.1% in December from a downwardly revised November print.

European markets, weighed down by a raft of weak earnings, tumbled 1%-3.5%.

AT HOME

Benchmark indices ended modestly lower after a rangebound but choppy trading session on the expiry day of the January derivative series. Sensex settled at 24470, down 23 points while Nifty lost 13 points to finish at 7425. BSE mid-cap and small-cap indices lost 0.4% and 0.04% respectively. BSE Telecom and Capital Goods indices tumbled 2.4% and 1.7% respectively, becoming top losers among the sectoral indices while FMCG and Energy indices were the top gainers, up 1.5% and 1.2% respectively.

FIIs net sold stocks and index futures worth Rs 962 cr and 1598 respectively but net bought stock futures worth Rs 387 cr. DIIs were net buyers to the tune of Rs 394 cr.

Rupee depreciated 19 paise to end at 68.23/$, marking a 29-month low.

Bharti Airtel's third quarter consolidated net profit fell 27% q-o-q to Rs 1170 cr, impacted by exceptional loss of Rs 340 cr. Revenue rose 1% to Rs 24066 cr. Operating profit rose 2.5% to Rs 8479 cr and margin expanded by 50 bps to 35.2% which were better-than-estimates.

Maruti reported lower-than-expected 27% growth in net profit at Rs 1019 cr. Revenue rose at better-than-expected 20% to Rs 15082 cr. Operating profit rose 36.2% (expectation 55%) to Rs 2170 cr and margin expanded by 180 bps (expectation 390 bps) to 14.4%.

ICICI Bank reported slightly lower-than-estimated 4.5% growth in December quarter net profit at Rs 3018 cr. NII came in better-than-estimated at Rs 5453 cr, up 13%.  Provisions for bad loans shot up 190% y-o-y and 202% q-o-q to Rs 2844 cr. Gross NPA ratio worsened to 4.72% from 3.77% q-o-q and Net NPA ratio increased to 2.28% from 1.65%.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 25 points lower opening for our market.

For past three sessions, Nifty has been struggling to get past 7487 top made on Monday. A crossover of this hurdle is required for a fresh upmove and 7605-7620 would be the next target area in that case.

7360 continues to be be immediate support on the hourly chart with the stop loss of which trading longs can be held on to.

LT will report its quarterly earnings today.

7360 CONTINUES TO BE IMMEDIATE SUPPORT; 7605-7620 NEXT TARGET AREA ABOVE 7487

7360 CONTINUES TO BE IMMEDIATE SUPPORT; 7605-7620 NEXT TARGET AREA ABOVE 7487

WORLD MARKETS                                       

US indices plunged 1.1%-2.2% yesterday, despite higher oil prices, as disappointing quarterly reports weighed and the Fed statement signaled weaker US growth.

In its post-meeting statement, the Fed tweaked its view of the U.S. economy, noting that growth had slowed, business investment has moderated and inventory investment has decelerated. The central bank said it is "closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation, and for the balance of risks to the outlook." Stocks sold off on concerns that the Fed could now be signaling weaker growth with its comments, but not offering fresh guidance on rate hikes.

Boeing tumbled 9% for its worst day since Oct. 29, 2001 after the firm gave full-year guidance below expectations. Apple slipped 6.6% percent for its worst day since Jan. 28, 2014 after the iPhone maker reported fewer-than-expected unit sales of its flagship product, for the lowest growth in shipments since the iPhone was launched in 2007. 

Nymex oil rose 85 cents to $32.30 a barrel and Brent added $1.34 to $33.14 a barrel after reports emerged non-OPEC oil producer Russia was discussing the possibility of cooperation with OPEC.

European markets, except a 0.4% cut in Italy, gained 0.5%-1.3%.

AT HOME

Benchmark indices ended flat after a choppy trading session. Sensex settled at 24492, up 6 points while Nifty added 2 points to finish at 7438. BSE mid-cap and small-cap indices gained 0.3% and 0.6% respectively. BSE Utilities and Power indices climbed 2.2% and 1.6% respectively, becoming top gainers among the sectoral indices while Capital Goods and Energy indices were the top losers, down 0.7% and 0.4% respectively.

FIIs net sold stocks and index futures worth Rs 367 cr and 619 cr respectively but net bought stock futures worth Rs 852 cr. DIIs were net buyers to the tune of Rs 500 cr.

Rupee fell 22 paise to end at 68.045/$, a fresh 29-month low.

HDFC reported lower than estimated 6.7% rise in net profit at Rs 1520 cr, hit by higher provisions and lower non-core income. NII rose 8.2% to Rs 2182 cr. Provisions for bad loans increased 51% y-o-y and 31% q-o-q to Rs 68 cr.

OUTLOOK

Today morning, Shanghai has opened around a percent lower and other Asian markets are trading with modest gains. SGX Nifty is suggesting about 20 points higher opening for our market.

In yesterday's report we had mentioned that the setup on the hourly chart has turned positive and one should stay long with the stop loss of 7360, which is the immediate support on the hourly chart.

The benchmark ended flat after a choppy trade yesterday and is set to open marginally higher today.

7360 continues to be immediate support with the stop loss of which trading longs can be held on to. 7487, the top made on Monday, is the immediate hurdle, a crossover of which would pave the way for the further upside till about 7605-7620 where the next set of resistance is placed.

Bharti Airtel, Maruti and ICICI Bank will report their quarterly earnings today.

STAY LONG WITH THE STOP LOSS OF 7360

STAY LONG WITH THE STOP LOSS OF 7360

WORLD MARKETS                             

US indices, helped by a bounce in oil and some earnings beats, climbed 1.1%-1.8% yesterday.

Energy soared 3.8% percent to lead all S&P 500 sectors higher as Nymex oil, after sliding as much as 7% on Monday, rose $1.11 or 3.7% yesterday to top $32.50 a barrel. Brent climbed 7% to $32.50 a barrel. The gains came amid news OPEC is making renewed calls for rival producers to cut supply alongside its members.

3M closed up 5.2% after posting quarterly results that beat on both the top and bottom line.

US flash Markit Services PMI for January came in at 53.7, versus the final 54.3 December print. Consumer confidence was 98.1, up from a slightly downwardly revised December read of 96.3. S&P/Case-Shiller 20-City Composite rose 5.8% y-o-y in November, topping expectations and faster than the 5.5% increase in October.

European markets gained 0.6%-1.5%. Mining stocks were top performs, as the recovery in both oil and metal prices boosted sentiment.

Copper rose to its highest in two weeks after China's General Administration of Customs said that refined copper imports in December rose 34 percent year-over-year, for the fourth consecutive month of strong imports. Gold added $15 to $1120 an ounce.

Earlier Asian markets closed sharply lower, Shanghai Composite plunging 6.4% to its lowest since late 2014 on the back of renewed concerns about capital outflows and disappointment with central bank action thus far. Nikkei lost 2.4%.

AT HOME

After rising nearly a percent in the initial trade, benchmark indices gave away most of the gains through the session to end higher by just a fifth of a percent. Sensex settled at 24486, up 50 points while Nifty added 14 points to finish at 7436. BSE mid-cap and small-cap indices gained 0.2% and 0.9% respectively. BSE Metal and Consumer Durable indices climbed 1.6% and 1.3% respectively, becoming top gainers among the sectoral indices while Capital Goods and Auto indices were the top losers, down 0.9% and 0.7% respectively.

FIIs net sold stocks and index futures worth Rs 91 cr and 982 cr respectively but net bought stock futures worth Rs 846 cr. DIIs were net buyers to the tune of Rs 308 cr.

Rupee depreciated 20 paise to end at 67.83/$.

HDFC Bank reported in-line with estimated 20% growth in December quarter net profit at Rs 3357 cr. NII climbed at better-than-expected 24% to Rs 7069 cr. Gross NPA ratio deteriorated to 0.97% from 0.91% q-o-q and Net NPA ratio rose 4 bps to 0.29%.

OUTLOOK

Today morning, except a flattish Shanghai, other Asian markets are trading with gains of 0.5%-2.5% with Nikkei leading the tally and SGX Nifty is trading around 7440, which is about 5 points higher than Monday's Nifty future close of 7440.

For past couple of sessions, we have been mentioning that 7440 is the immediate hurdle, a sustained above would generate a "buy" on the hourly chart and 7605-7620 would be the next target area if that happens.

Nifty, after touching a high of 7487 in the initial trade on Monday, slipped to end below 7440 at 7436.

The setup on the hourly chart however has turned positive and traders can hold on to long positions with the stop loss of 7360, which is the immediate support on the hourly chart.

HDFC will report its quarterly earnings today.

The Federal Open Market Committee kicked off its two-day meeting yesterday and is scheduled to release its statement today. No change in rates is expected but markets will be scrutinizing the statement for insight into policymakers' views on the economic environment and the future path of tightening.

NIFTY REBOUNDS AFTER FORMING POSITIVE DIVERGENCE

NIFTY REBOUNDS AFTER FORMING POSITIVE DIVERGENCE

WORLD MARKETS                             

US indices soared 1.3%-2.7% on Friday, helped by a recovery in oil from multiyear lows and hopes of stimulus in Europe and Japan.

Energy rose 4.3% to lead all the sectors as Nymex oil shot up $2.66 or 9% to $32.19 a barrel, for its biggest one day gain since the end of August and settled at the highest level since Jan 8.

The ECB left rates unchanged Thursday but Draghi's remarks raised expectations of more stimulus at the central bank's March meeting. Hopes of the Bank of Japan announcing more easing at their meeting this week also boosted Asian equities on Friday, with the Nikkei 225 surging 5.9%. The Shanghai composite closed up 1.3%.

U.S. Markit Flash Manufacturing PMI came in at 52.7, in expansion territory and above the final December print of 51.2. Existing home sales in December jumped a record 14.7% to an annual rate of 5.46 million units. The Chicago Fed December National Activity Index came in at minus 0.22, versus November's negative 0.36 read. December U.S. leading indicators fell 0.2%.

European markets gained 2%-3.3%. Euro zone Purchasing Managers Index (PMI) for January fell to 53.5 from 54.3 last month.

For the week, US indices gained 0.7%-2.3%. European markets, except a 0.9% cut in Italy, gained 2%-3%. Nymex oil rose 9.4% for its biggest weekly gain since August.

AT HOME

It was a good end to the week as benchmark indices, after a gap up opening, moved further higher through the session to end with hefty gains of 2%. Sensex soared 473 points to settle at 24436 while Nifty finished at 7422, up 146 points. BSE mid-cap and small-cap indices gained 1.9% and 2.2% respectively. Except a 2.4% cut in BSE Telecom index, all the sectoral indices ended higher with  Metal and Auto indices leading the tally, up 4.3% and 3.6% respectively.

FIIs net sold stocks worth Rs 770 cr but net bought index futures and stock futures worth Rs 557 cr and 859 cr respectively. DIIs were net buyers to the tune of Rs 916 cr.

Rupee appreciated 39 paise to end at 67.625/$.

ITC missed street estimates with December quarter net profit rising 0.6% y-o-y to Rs 2652 cr. Revenue rose 2.6% to Rs 9177 cr. Operating profit grew at lower-than-expected 4% to Rs 3605 cr while margin was in line, expanding 60 bps to 39.3%.

For the week, Sensex and Nifty lost 0.1% and 0.2% respectively.

OUTLOOK

Today morning Asian markets are trading with gains of 0.5%-1.5% and SGX Nifty is suggesting about 15 points higher opening for our market.

Readers would recall that in Thursday's report we had mentioned that while Nifty closed at a fresh low on Wednesday, RSI made a higher bottom, forming a "positive divergence" on the daily chart. We had therefore advised booking some profit in short positions and trailing the stop loss in remaining ones to 7440, which was the immediate hurdle on the hourly chart.

The benchmark, after making a double bottom near Wednesday's low of 7240 on Thursday, surged 2% on Friday to close at 7422.

After today's positive start, benchmark would be closer to 7440 hurdle mentioned above, a sustained trading above which will generate a "buy" on the hourly chart and can take the benchmark to 7605-7620 area, where next set of resistance is placed. 

On the way down 7240 is the immediate support, upon breach of which 7100, the 50% retracement level of the entire 5119-9119 upmove, would be the next support to eye.

Traders are advised to wait for the breach of 7240-7440 range for taking a fresh view on Nifty.

HDFC Bank will report its quarterly earnings today.

7240-7440 CONTINUES TO BE IMMEDIATE RANGE

7240-7440 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

While Nasdaq ended flat Dow and S & P 500 gained 0.7% and 0.5% respectively, helped by some recovery in oil prices and hopes of more stimulus from the ECB.

Nymex oil topped $30 a barrel before settling at $29.53, up $1.18 or 4.2%, for its largest one-day gain since October. Brent rose $1.42 or 5.1% to $29.31 a barrel.

ECB President Mario Draghi, at a press conference following the policy meeting, said that downside risks have increased again and the central bank needs to review, possibly reconsider policy stance at the next meeting. Draghi also said the central bank has the power, willingness and determination to act, noting it has plenty of instruments.

In US economic data, weekly jobless claims came in at 29300, a six month high. The January Philadelphia Fed index showed minus 3.5.

European markets, buoyed by ECB President's comments, ended with gains in the vicinity of 2%.  The euro traded just below $1.09 after briefly falling below $1.08 on Draghi's comments. Italian banks rose sharply following Draghi's comments saying that a recent ECB investigation was never meant to affect the Italian banks so negatively.

Earlier Asian stocks closed sharply lower with Nikkei off more than 2% and Shanghai composite down more than 3% despite news China's central bank will inject more funds into money markets.

AT HOME

After gaining more than a percent in the initial trade, benchmark indices nosedived more than a percent and half from the top of the day to end lower by four tenth of a percent. Sensex settled at 23962, down 100 points while Nifty lost 32 points to finish at 7277. BSE mid-cap index lost 0.3% but the small-cap index gained half a percent. BSE Energy and Auto indices tumbled 2% and 1.9% respectively, becoming top losers among the sectoral indices while Bankex climbed 1.3%, becoming top gainer, followed by 0.8% rise in Finance index.

FIIs net sold stocks worth Rs 1747 cr but net bought index futures and stock futures worth Rs 329 cr and 373 cr respectively. DIIs were net buyers to the tune of Rs 1268 cr.

Rupee closed at 68.02/$, depreciating 7 paise compared to previous close.

OUTLOOK

Today morning Nikkei is trading with gains of more than 3%, other Asian markets are up 1-1.5% and SGX Nifty is suggesting about 60 points higher opening for our market.

In yesterday's report we had mentioned that traders should book some profit in short positions considering a positive divergence on the daily chart of Nifty and trail stop loss in remaining positions to 7440, which is the immediate hurdle on the hourly chart.

The benchmark, after making a high of 7399 in the initial trade, plunged sharply to end at 7277. However, a gap up opening today would take the benchmark closer to 7350 mark.

The positive divergence was intact even in yesterday's trade as despite the lower close, RSI still maintained a higher bottom.

7440 continues to be immediate hurdle, a crossover of which would generate a buy on the hourly chart and can lead to further upside till about 76057-7620, where the benchmark was resisted couple of times last week.

On the way down, 7240, the bottom made on Wednesday, is the immediate support, below which 7100, the 50% retracement level of the entire 5119-9119 upmove, would be the next support to eye.

ITC will report its quarterly earnings today.

OVERSOLD NIFTY FORMS POSITIVE DIVERGENCE; TRAIL STOP LOSS TO 7440

OVERSOLD NIFTY FORMS POSITIVE DIVERGENCE; TRAIL STOP LOSS TO 7440

WORLD MARKETS                             

After nose-diving nearly three and a half percent in the first half, US indices recouped more than half of the losses in the second half with Dow, S & P 500 and Nasdaq closing lower by 1.6%, 1.2% and 0.1% respectively. S & P 500 ended at its lowest level since April 2014.

Energy led the losers after Nymex oil sank $1.91 or 6.71% to $26.55 a barrel, its lowest since May 2003 after data from the American Petroleum Institute showed higher-than-expected build up of U.S. crude inventories. Brent fell 91 cents to $27.87 a barrel.

In economic news, the December U.S. CPI showed a 0.1% decline. Ex-food and energy, the index rose 0.1% after rising 0.2% for three straight months. Building permits fell 3.9% in December. Housing starts fell 2.5% but the seasonally adjusted annual pace remained above a 1 million.

Gold rose $17 to $1106 an ounce.

European markets plunged 2.8%-4.8% with miners leading on the way down. London's FTSE finished off 3.5%, with the index having entered "bear market" territory during yesterday's trade after it fell more than 20% from its records highs in April.

Earlier, Nikkei fell close to 4%, entering bear market territory as it has fallen more than 20% from its peak in June last year.

AT HOME

After plunging nearly two and a half percent, benchmark recouped a third of the losses in last hour or so to end lower by 1.7%, closing at 20-month low. Sensex settled at 24062, down 418 points while Nifty lost 126 points to finish at 7309. BSE mid-cap and small-cap indices lost 2% each. All the BSE sectoral indices ended in red with Realty and Energy indices leading the tally, down 3.5% and 3.1% respectively.

FIIs net sold stocks and index futures worth Rs 1325 cr and 87 cr respectively but net bought stock futures worth Rs 647 cr. DIIs were net buyers to the tune of Rs 1383 cr.

Rupee depreciated 31 paise to end at 67.95/$, the lowest level in more than 28 months.

Axis Bank's third quarter profit and net interest income surpassed expectations but asset quality worsened. Profit increased 14.5% y-o-y to Rs 2,175.30 crore, driven by other income and net interest income despite higher provisions. NII rose 16% to Rs 4162 cr. Net interest margin declined to 3.79% from 3.85% q-o-q. Provisions for bad loans shot up 40.5% y-o-y to Rs 713 cr. Gross NPA ratio climbed 30 bps q-o-q to 1.68% and Net NPA ratio rose 27 bps to 0.75%.

Ultratech Cement reported a 37% percent growth in its consolidated net profit to Rs 545.92 crore for the quarter ended December 2015 on lower operating costs and higher sales. Total income rose 4% to Rs 6188 cr.

OUTLOOK

Today morning, barring a 1% lower Shanghai, other Asian markets are trading with gains of 0.5%-1.5% and SGX Nifty is suggesting about 40 points higher opening for our market.

In yesterday's report we had mentioned that upon sustained trading below 7350, next major downside target to eye would be 7100, where the 50% retracement level of the entire 5119-9119 upmove.

The benchmark broke 7350 in the initial trade itself and plunged all the way to 7241, but recovered in last hour of trade to end at 7309.

While Nifty closed at a fresh low yesterday, RSI on the daily chart made a higher bottom, which suggests that yesterday's fall is having lesser strength. While it would be premature to conclude that a final bottom has been made, one should certainly book some profit in short positions and trail the stop loss in remaining ones to 7440, which is now the immediate hurdle on the hourly chart.

A sustained trading above 7440 would open up the further upside till about 7605-7620, where multiple tops were made last week.

7350 CONTINUES TO BE MAJOR SUPPORT; 7500 IMMEDIATE HURDLE

7350 CONTINUES TO BE MAJOR SUPPORT; 7500 IMMEDIATE HURDLE

WORLD MARKETS                             

After opening with gains of nearly a percent, US indices gave away most of them to end mixed. Dow and S & P 500 closed 0.2% and 0.04% higher respectively while Nasdaq lost 0.25%.

Stocks opened higher as oil gained and softer Chinese data spurred some hopes of further monetary stimulus. China reported GDP of 6.9% for 2015, the slowest pace since 1990. Fourth-quarter GDP growth was 6.8% y-o-y, a touch below expectations. December retail sales showed 11.1% growth y-o-y, while industrial production grew 5.9%. Both were mildly below estimates. Asian markets closed higher, with the Shanghai composite up more than 3%.

However, Nymex oil reversed to end lower by 96 cents or 3.26% to $28.46 a barrel, its lowest since September 2003. Brent however gained 32 cents or 1.12% to $28.88 a barrel.

The International Monetary Fund cut its global economic growth forecast for 2016 to 3.4%, down from prior forecasts but up from a 3.1% forecast for 2015.

European markets, helped by gains in mining and energy stocks, rose 1%-2%.

AT HOME

Bringing some respite to bulls, benchmark indices climbed a percent and fifth, breaking a three day losing streak. Sensex settled at 24480, up 291 points while Nifty rose 84 points to finish at 7435. BSE mid-cap and small-cap indices gained 1.7% each. All the BSE sectoral indices ended in green with Industrial and Capital Goods indices leading the tally, up 3% and 2.8% respectively.

FIIs net sold stocks worth Rs 858 cr but net bought index futures and stock futures worth Rs 391 cr and 243 cr respectively. DIIs were net buyers to the tune of Rs 1387 cr.

Rupee appreciated 3 paise to end at 67.645/$.

HCL Tech reported better-than-estimated 1.4% q-o-q dollar revenue growth for the quarter ended December 2015 at USD 1556 mn. Constant currency growth stood at 2.1%. Net profit surged 11.2% and revenue increased 2.4% to Rs 10341 cr. EBIT declined 0.2% to Rs 2072 cr and margin contracted by 56 bps to 20%.

Reliance Industries reported better-than-expected 10% q-o-q growth in December quarter net profit at Rs 7218 cr on strong performance of refining business and higher other income. Gross refining margin jumped to seven-year high at USD 11.50 a barrel Vs 10.6 in September quarter. Standalone operating profit rose 4.5% to Rs 10272 cr and margin expanded by 200 bps to 18.2%.

OUTLOOK

Today morning Asian markets are trading with cuts of 1%-2% and SGX Nifty is suggesting about 75 points lower opening for our market.

After testing the major support of 34-month moving average placed at 7350 on Monday, Nifty rebounded yesterday to end at 7435.

However, a gap down opening today would again take the benchmark close to 7350 support.

As mentioned in yesterday's report, until the immediate resistance of 7500 is taken out, the bias will continue to be negative. Similarly a sustained trading below 7350 is required to take a fresh negative view. This makes 7350-7500 a no-trade zone, a breach of which, on either side, should be awaited before taking a fresh view. As mentioned in yesterday's report, 7100, the 50% retracement level of the entire 5119-9119 upmove, would be the next major target below 7350.

Axis Bank and Ultratech Cement will report their quarterly earnings today.

NIFTY ACHIEVES MAJOR DOWNSIDE TARGET OF 7350

NIFTY ACHIEVES MAJOR DOWNSIDE TARGET OF 7350

WORLD MARKETS                             

US markets were closed yesterday for the Martin Luther King Day holiday.

European markets ended with cuts of upto half a percent except a steeper 2.6% dip for Italy. Italian banks suffered sharp losses after reports suggested that the European Central Bank was looking into a number of euro zone banks about non-performing loans.

Nymex oil fell 48 cents to $28.94 a barrel, after hitting a low of $28.36 earlier in the session. Brent fell by 29 cents to $28.64 a barrel.

AT HOME

Bloodbath on Dalal Street continued as benchmark indices plunged 1.1% to end at 20-month low. Sensex settled at 24188, down 267 points while Nifty lost 87 points to finish at 7351. BSE mid-cap and small-cap indices nosedived 2.7% and 4% respectively. All the BSE sectoral indices ended in red with Energy and Realty indices leading on the way down, giving away 4.1% and 3.4% respectively.

FIIs net sold stocks and stock futures worth Rs 1204 cr and 484 cr respectively but net bought index futures worth Rs 958 cr. DIIs were net buyers to the tune of Rs 1123 cr.

Rupee depreciated 8 paise to end at 67.6775/$.

Kotak Mahindra Bank reported in-line with estimates 11.5% q-o-q growth in standalone net profit at Rs 635 cr. NII rose 5.2% to Rs 1766 cr. NIM remained unchanged at 4.3%.Provisions rose 33% to Rs 235 cr. Gross NPA fell marginally to 2.3% from 2.35% and net NPA improved to 0.96% from 1.05%.

Wipro reported lower-than-estimated 0.3% q-o-q growth in dollar revenue at USD 1838 mn. Net profit fell 0.06% to Rs 2234 cr and revenue rose 2.25% to Rs 12314 cr. Operational performance was slightly ahead of estimates. EBIT fell 0.5% to Rs 2482 cr and margin contracted 50 bps to 20.2%

India's exports contracted for 13th month in a row in December, falling 14.75% to $22.2 bn. Imports fell 3.88% to $33.9 bn, widening the trade deficit to $11.6 bn as against $9.17 bn in D

Asian Paints reported better-than-expected 25.8% jump in net profit at Rs 463 cr. Revenue rose 13.9% to Rs 4160 cr. EBIDTA climbed 37% to Rs 800 cr and EBIDTA margins stood at 19.2% vs 16%.

OUTLOOK

China's Q4 GDP growth has come in at 6.8%, a tad lower than estimate of 6.9%. December IIP has come in at 5.9% Vs estimate of 6%.

Asian markets are trading mixed with gains of upto 0.8% and SGX Nifty is suggesting about 20 points higher start for our market.

As you would recall, ever since 7540 support was breached, we have been working with major downside target of 7350, where 34-month average is placed.

The benchmark yesterday plunged to 7336 and closed at 7351, achieving this target and vindicating our view.

7350, being 34-month average, is very important support from long term perspective, a monthly close below which would severely damage the long term trend.

Intra month, a sustained trading below 7350 would open up the further downside till about 7100, where the 50% retracement level of the entire 5119-9119 upmove is placed. 

Immediate resistance on the hourly chart has moved lower to 7500, which should serve as the revised stop loss in short positions.

Reliance Industries and HCL Tech will report their quarterly earnings today. Reliance is expected to post a 6% q-o-q rise in net profit at Rs 6950 cr. GRMs are expected to shot up to $12 from $10.6 a barrel.