BOJ STATUS CO, EXPIRY JITTERS PUNCTURE NIFTY RALLY

BOJ STATUS CO, EXPIRY JITTERS PUNCTURE NIFTY RALLY

WORLD MARKETS                             

Dow and Nasdaq plunged 1.2% each and Nasdaq fell 0.9% yesterday. This was the first 200 plus point fall for the Dow since Feb. 11.

After opening lower, tracking a steep fall in Nikkei on the back of status-co from Bank of Japan, US indices attempted to recover all the losses helped by gains in Facebook but were again dragged down by Apple which fell 3.1%, extending Wednesday's 6% plunge on disappointing earnings. Facebook soared 7.2% and touched a fresh all-time high after reporting quarterly earnings well above expectations on both the top and bottom line, helped by a sharp increase in mobile advertising revenue.

The Bank of Japan maintained the pace of its asset purchase program and kept steady its 0.1% negative rate it applies to some deposits. The central bank also cut its inflation forecasts and again pushed back the timing for hitting its 2% price target by six months. Nikkei plunged 3.5% and yen strngthened to trade near 108 a dollar.

Back in the US, the first quarter U.S. GDP advance read was 0.5%, the slowest pace since the first quarter of 2014. Consumer spending increased at a 1.9%, the slowest since the first quarter of 2015 and down from the fourth quarter's 2.4% rate. Weekly jobless claims rose to 257,000, but the four-week moving average of claims fell to the lowest since December 1973.

European markets ended mixed. Italy climbed 1.2% and Germany gained 0.2%. FTSE ended flat while Spain lost 0.7%. Basic resources sector posted solid gains following uptick in metal prices.

Nymex oil rose 70 cents or 1.5% to $46.03 a barrel, its highest since Nov. 4, 2015. Dollar index fell about 0.6%. Gold gained $16 to $1266 an ounce.

AT HOME

Surprised by the decision of Bank of Japan to hold off on expanding monetary stimulus, world equities came under pressure and Indian indices, also weighed down by the derivative expiry, plunged 1.7% to close at the lowest levels since 12th April. Sensex settled at 25603, down 461 points while Nifty lost 133 points to finish at 7847. BSE mid-cap and small-cap indices lost 0.8% and 1% respectively. Except a 1.7% rise in BSE Realty index, all the sectoral indices ended in red with Oil & Gas and Metal indices leading the fall, down 2.2% each.

FIIs net bought stocks and index futures worth Rs 120 cr and 103 cr respectively but net sold stock futures worth Rs 1351 cr. DIIs were net sellers to the tune of Rs 416 cr.

Rupee depreciated 8 paise to end at 66.52/$.

HCL Tech reported lower than expected 1.3% growth in dollar revenue at USD 1587 mn. Rupee revenue rose 3.4% to Rs 10698 cr while net profit rose 0.3% to Rs 1926 cr.

ACC reported lesser-than-expected 4.2% dip in Jan-March quarter net profit at Rs 237 cr. Total income fell 2.9% to Rs 2991 cr. EBIDTA fell 29% to Rs 433 cr while EBIDTA margin stood at 14.5% vs 19.8% y-o-y.

Ambuja Cement reported better-than-expected operational and net profit numbers. The company saw 4.4% dip in net profit at Rs 304 cr. Revenue fell 0.7% to Rs 2444 cr and EBIDTA was down 12% at Rs 450 cr. Operating margin stood at 18.4%, down from 20.7% y-o-y but better-than the expected 16-17% level. Volume grew a sharp 9.5% to 5.86 mn tonne. 18.4% 20.7% 16-17%

Idea Cellular reported lower-than-expected 25% dip in net profit at Rs 576 cr. Revenue rose 5.3% to Rs 9484 cr and EBIDTA grew 15.6% to Rs 3616 cr, significantly better than the estimates. EBIDTA margin stood at 38.1%, a sequential jump of nearly 340 bps and best the company has delivered in nearly three years.

OUTLOOK

Today, Nikkei is closed for a public holiday. Shanghai is flat but other Asian markets are trading with cuts of 0.5%-1.25% and SGX Nifty is suggesting about 30 points lower opening for our market.

Yesterday, before the Bank of Japan decision, SGX Nifty was suggesting a sharply higher start above the 7980 hurdle for Nifty. But the surprise status-co from the BoJ resulted in a flattish start, after which Nifty, also weighed down by the expiry jitters, plunged 133 points to end at 7847.

After yesterday's fall, Nifty is now back in the sell mode on the hourly chart. 7822, the bottom made on Tuesday, is the immediate support, upon sustained trading below which 34-DMA, placed around 7700, would be the next target to eye.

Immediate resistance on the hourly chart is placed around 7910, with the stop loss of which trading shorts can be held on to.

ICICI Bank will report its quarterly earnings today.

NIFTY HEADED TO 8150; STAY LONG WITH THE STOP LOSS OF 7910

NIFTY HEADED TO 8150; STAY LONG WITH THE STOP LOSS OF 7910

WORLD MARKETS                             

After digesting Fed statement, Dow and S & P 500 gained 0.3% and 0.2% yesterday while Nasdaq, weighed down by 6% plunge in Apple, fell half a percent.

US Fed, as expected, left key rates unchanged, citing a slowdown in economic activity. Policy statement highlighted the many conflicting signs in the economy that included consistent job growth and an improving housing market but slowdowns in business investment and exports. The latest statement removed the line pointing to risks from global economic and financial developments.

Apple revenues missed expectations and dropped roughly 13% y-o-y, falling for the first time since 2003 as iPhone sales had their first year-over-year decline. Earnings were 10 cents short of expectations at $1.90 a share. Boeing reported earnings that missed but revenues that beat.

In economic news, pending home sales rose 1.4% in March. The US advance March goods trade deficit came in at $56.90 bn, narrowing from the $62.86 gap reported in the prior month. Total mortgage application volume decreased 4.1% last week.

Nymex oil rose $1.29 or 3% to $ 45.33 a barrel. The EIA announced that U.S. commercial crude inventories increased by 2 million barrels last week, coming in at 540.6 million barrels. Gold gained $7 to $1250 an ounce.

European markets rose 0.4%-0.6%.

AT HOME

Benchmark indices gained a fifth of a percent, extending Tuesday's mammoth upmove and closing at the highest level of calendar 2016. Sensex added 57 points to settle at 26064 while Nifty finished at 7980, up 17 points. BSE mid-cap and small-cap indices gained 0.1% and 0.3% respectively. BSE Telecom and Oil & Gas indices gained 3% and 1.2% respectively, becoming top gainers among the sectoral indices while Bankex and Power index were the top losers, down 0.9% and 0.5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 411 cr, 844 cr and 169 cr respectively. DIIs were net sellers to the tune of Rs 295 cr.

Rupee appreciated 8 paise to end at 66.44/$.

Bharti Airtel reported better-than-expected 15.6% sequential growth in Jan-March quarter net profit at Rs 1290 cr. Revenue rose 4% to Rs 24960 cr. EBIDTA was up 8.4% at Rs 9188 cr and margin improved to 36.8% from 35.2%. The company proposed a buy-back of upto Rs 1434 cr at Rs 400 per share.

OUTLOOK

Today morning, except a 0.3% lower Shanghai, other Asian markets are trading with gains of upto a percent and half with Nikkei leading the tally ahead of BoJ policy statement. SGX Nifty is suggesting about 35 points higher opening for our market.

In yesterday's report we had mentioned that 7980 continues to be immediate hurdle, a crossover of which is required for fresh upmove. The benchmark gained 17 points to finish exactly at 7980 and is set to open higher today.

Next target, as we have been mentioning, is 8150, where 20-month moving average is placed. Immediate support on the hourly chart is placed around 7910, with the stop loss of which trading longs should be held on to.

HCL Tech, Ambuja Cement, Idea and ACC will report their quarterly earnings today.

NIFTY BACK TO 7980 HURDLE AFTER A DRAMATIC REBOUND

NIFTY BACK TO 7980 HURDLE AFTER A DRAMATIC REBOUND

WORLD MARKETS                             

Dow and S & P 500 ended marginally higher while Nasdaq lost 0.2% yesterday as energy stocks gained while healthcare and information technology stocks declined.

Nymex oil rose $1.40 or 3.3% to $44.04 a barrel after American Petroleum Institute reported a drawdown of nearly 1.1 million barrels in U.S. crude inventories last week, versus a 2.4 million-barrel build forecast.

3M earnings beat on both the top and bottom line. DuPont earnings topped expectations and the company raised its forecast for 2016, citing a weakening of the dollar against "most currencies. Procter & Gamble reported better-than-expected earnings but revenue miss, which fell for a seventh-straight quarter.

Standard & Poor's lowered Exxon Mobil's credit rating to AA+ from AAA, saying low oil prices would make it difficult for the company to keep funding high dividends and share purchases for the next few years.

Durable goods orders rose a less-than-expected 0.8% in March after a downwardly revised 3.1% decline in February. The S&P/Case-Shiller 20-City home price index rose 5.4% in February, down from 5.7% the prior month. The flash Markit services PMI rose to 52.1 in April from 51.3 last month. Consumer confidence for April was 94.2.

In Europe, CAC and DAX fell a third of a percent while FTSE rose 0.4% and Italy climbed a percent and half. Oil major BP reported a pretax loss of $865 million in the first quarter of 2016 on account of low oil prices. Standard Chartered bank surged nearly 10% after the group reported a pre-tax profit of $589 million, showing signs of a turnaround.

AT HOME

After falling about half a percent in the opening trade, benchmark indices saw a mammoth rebound through the session to end higher by about a percent and third. Sensex added 328 points to settle at 26007 while Nifty finished at 7963, up 108 points. Both the indices closed at the highest level since 1st January. All the BSE sectoral indices closed in green with Bankex and Metal index leading the tally, up 2% each.

FIIs net bought stocks and index futures worth Rs 512 cr and 994 cr respectively but net sold stock futures worth Rs 871 cr. DIIs were net buyers to the tune of Rs 21 cr.

Rupee appreciated 9 paise to end at 66.52/$.

Maruti reported 11.7% dip in Jan-March quarter net profit at Rs 1134 cr on account of loss of 10000 units due to reservation agitation, increased advertising expenses and lower other income. Total income rose 12.3% to Rs 15306 cr. EBIDTA rose 8.5% to Rs 2350 cr while EBIDTA margin stood at 15.3% against 15.8% yoy. 

Axis Bank, as against expectation of a 7% fall, reported 1.2% dip in Q4 net profit at Rs 2154 cr. NII rose at better-than-expected 19.8% to Rs 4552 cr. Asset quality held steady, with the gross non performing asset (GNPA) and net NPAs coming at 1.67% (versus 1.68%) and 0.7% (vs 0.75%) sequentially. The bank however said that assets worth Rs. 22628 cr are under pressure out of which 60% can turn bad in 2 years.

OUTLOOK

Today morning Asian markets are trading with modest cuts and SGX Nifty is suggesting about 10 points lower opening for our market.

Nasdaq future is down more than a percent, tracking about 8% fall in Apple shares in after-hours trading on disappointing earnings. The tech giant reported fiscal second-quarter earnings of $1.90 per share on $50.5 billion in revenue as against expectations of earnings of about $2 a share on $51.9 billion in revenue.

After Nifty generated sell on the hourly chart by breaking the 7840 support, we were expecting next support to come in 7770-7720 region. The benchmark however, after touching a low of 7822 in the initial trade, rebounded sharply to close at 7963.

After this mammoth rebound, Nifty is back in the vicinity of 7980 hurdle, a decisive crossover of which would pave the way for the further upside till about 8150, where 20-month moving average is placed.

Traders can initiate fresh longs upon crossover of 7980 with the stop loss of 7900, which is the immediate support on the hourly chart.

YES Bank and Bharti Airtel will report their quarterly earnings today.

US Fed will conclude its two day meeting today. While no move on rates is expected, markets will watch out for clues on the timing of the next hike.

NIFTY BREAKS 7840 SUPPORT; STAY SHORT WITH THE STOP LOSS OF 7920

NIFTY BREAKS 7840 SUPPORT; STAY SHORT WITH THE STOP LOSS OF 7920

WORLD MARKETS                             

US indices ended lower by about a fifth of a percent but well off the day low. Energy stocks led the losers while defensive sectors gained the most.

Nymex oil fell $1.09 or 2.5% to $42.64 a barrel while Brent eased 1.4% to $44.48. Saudi Arabia's government yesterday unveiled a 15-year plan that included regulatory, budget and policy changes aimed at making the kingdom less reliant on crude

New home sales in March fell 1.5% to a seasonally adjusted annual rate of 511,000.

Dollar index fell about 0.3%. Gold gained $10 to $1240 an ounce.

European markets fell 0.5%-1.5% with Italy leading the losses. Basic resources sector fell the most as concerns over China's economy and a fall in several metal prices like copper and lead, weighed on sentiment. Germany's Ifo Business climate index hit 106.6, below market expectations, but only a touch lower from the 106.7 recorded in March.

AT HOME

After falling nearly a percent intraday, benchmark indices recouped some of the losses in last hour or so to end lower by six tenth of a percent. Sensex lost 159 points to settle at 25679 while Nifty ended at 7855, down 44 points. BSE mid-cap and small-cap indices lost 0.1% and 0.4% respectively. BSE Utilities and Power indices lost 1.4% each, becoming top losers among the sectoral indices while Telecom and Teck indices gained 0.7% and 0.3% respectively.

FIIs net bought stocks and index futures worth Rs 222 cr and 13 cr respectively but net sold stock futures worth Rs 43 cr. DIIs were net sellers to the tune of Rs 748 cr.

Rupee depreciated 12 paise to end at 66.61/$.

Ultratech Cement reported better-than-expected 10.9% rise in fourth quarter net profit at Rs 681 cr, helped by lower tax and finance cost and better operational performance. Revenue rose 4.7% to Rs 6504 cr. Operating profit rose 3.2% to Rs 1353 cr but margin declined 30 bps to 20.8%, but were better-than-expected.

The second phase of the budget session of the Parliament started on a stormy note. The Opposition targeted the government on the Uttarakhand political crisis but the government refused to debate the issue.

OUTLOOK

Today morning Asian markets are trading mixed with changes of upto half a percent and SGX Nifty is suggesting a flattish start for our market.

After being resisted at important 7980 hurdle last week, Nifty yesterday broke the immediate support of 7840 by making an intraday low of 7827, but recovered to close at 7855.

Nevertheless a sell has been triggered on the hourly chart and traders can initiate fresh shorts once 7827, the bottom made yesterday is taken out. Existing shorts can carry a stop loss of 7920, which is the immediate resistance on the hourly chart. 7770-7720, the gap created by the gap up opening on 13th April, would be the support area to eye.

Maruti and Axis Bank will report their quarterly earnings today.

Fed starts its two day meeting today.

7980 IS THE HURDLE; 7800-7840 CONTINUES TO BE SUPPORT AREA

7980 IS THE HURDLE; 7800-7840 CONTINUES TO BE SUPPORT AREA

WORLD MARKETS                             

Dow gained 0.1%, S & P 500 ended flat while Nasdaq lost 0.8% on Friday.

Microsot plunged 7.2%, its worst day since Jan. 27 2015, after missing on earnings. Alphabet declined more than 5 percent after reporting earnings that missed on both the top and bottom line. Caterpillar reported earnings of 67 cents a share, down from $2.07 a year ago and also trimmed its 2016 sales outlook range to the lower end of the previously forecast range, despite recent gains in commodity prices and signs of improvement in the China market. On the flip side McDonalds's rose 6.2% after reporting earnings that beat on both the top and bottom line, and gave comparable same-store sales that topped expectations.

Energy sector was the top gainer as Nymex oil rose 55 cents or 1.3% to $43.73 a barrel. The weekly oil rig count showed a decline of 8 to 343, down 360 rigs from the same period last year.

In economic news, the Markit flash U.S. manufacturing PMI fell to 50.8 in April from 51.5 in March.

Dollar index gained 0.6%. Yen fell to 111.68, its weakest level against the dollar since April 1.

European markets, weighed down by Auto and basic resources sector, lost 0.2%-1.1%. Volkswagen plunged nearly 6% after reporting loss of 1.582 bn euros for 2015. Daimler fell 5% after the automaker announced it would be conducting an investigation into its emissions testing process, upon request of the U.S. Department of Justice. On the data front, Eurozone flash composite PMI for April fell to 53.0, down from March's 53.1.

Earlier, Nikkei rose 1.2% on report that the Bank of Japan may consider applying negative rates to its lending program for financial institutions. Shanghai inched up 0.2% while Hang Seng fell 0.7%.

For the week, Dow and S & P 500 added about half a percent while Nasdaq lost 0.6%. In Europe, FTSE lost half a percent while CAC and DAX gained 1.7% and 3.2% respectively. In Asia, Shanghai tumbled 3.9%, suffering its worst weekly fall since January. On the other extreme, Nikkei climbed 4.3%. Hang Seng rose 0.7%. Gold lost 0.4% for its second-straight weekly decline. Oil soared 8% for its third straight week of gains.

AT HOME

Benchmark indices ended marginally lower after trading in a narrow range. Sensex lost 42 points to settle at 25838 while Nifty ended at 7899, down 13 points. BSE mid-cap and small-cap indices ended marginally higher. Auto index and Bankex gained 0.9% and 0.4% respectively, becoming top gainers among the sectoral indices while FMCG and IT indices were the top losers, down 0.8% and 0.6% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 191 cr, 542 cr and 60 cr respectively. DIIs were net sellers to the tune of Rs 169 cr.

Rupee depreciated 10 paise to end at 66.49/$.

HDFC Bank reported slightly lower-than-expected 20.2% growth in quarterly net profit at Rs 3374 cr. NII grew at better-than-expected 24% to Rs 7453 cr. Gross NPA ratio improved 3 bps sequentially to 0.94% while net NPA ratio was better by 1 bps at 0.28%.

Reliance Industries reported better-than-expected profit of Rs 7320 cr for the quarter ending March as falling crude oil prices boosted refining and petchem margins. GRMs were in-line with estimate at USD 10.80 per barrel. Refining segment reported record EBIT of Rs 6394 cr, up 30.4% y-o-y. Petchem EBIT rose 35.4% to Rs. 2713 cr. EBIT from oil and gas business fell 97% to Rs 14 cr.

Cairn India posted biggest quarterly loss of Rs 10,948 crore mainly because of impairment loss on goodwill and non-producing oil and gas assets due to drop in oil prices. The company realised an average of USD 27.8 per barrel for oil it produced in January-March, down 43% from USD 48.6 per barrel a year ago. Gas price realisation was however up 19% at USD 7.4 per million standard cubic feet.

For the week, Sensex and Nifty gained 0.8% and 0.6% respectively, extending the winning streak to second week.

OUTLOOK

Today morning Asian markets are trading with cuts of 0.3%-0.9% and SGX Nifty is suggesting about 15 points lower opening for our market.

Nifty, last week, after being resisted at 7980 hurdle, retraced to end at 7899. 7980, as we have been mentioning is where previous two tops made in December 2015 and January 2016 as well as the 50% retracement level of the entire 9119-6825 fall. A crossover of this hurdle is required for fresh upmove.

On the way down 7800-7840 continues to be the support area to eye.

Traders are advised to wait for the crossover above mentioned resistance and support levels for taking fresh view on Nifty.

Ultratech Cement will report its quarterly earnings today.

NIFTY RETREATS AFTER ACHIEVING 7975 TARGET; 7800-7840 IS THE SUPPORT AREA

NIFTY RETREATS AFTER ACHIEVING 7975 TARGET; 7800-7840 IS THE SUPPORT AREA

WORLD MARKETS                             

Dow and S & P 500 fell about half a percent while Nasdaq ended little changed yesterday with telecoms leading declines amid the latest batch of earnings.

United, Travelers and Verizon reacted negatively to the earnings- the latter closed 3.3% lower as one of the greatest contributors to declines in the Dow.

Nymex oil fell $1 or 2.3% while Brent gave away 2.8% after market intelligence firm Genscape suggested a build-up of more than 840,000 barrels in U.S. crude at the Cushing, Oklahoma, delivery point in the four days to April 19.  Reports that Russia and Iran said they were ready to raise oil production further also weighed.

The Philly Fed Index was minus 1.6 in April. Weekly jobless claims came in at 247,000, the lowest since 1973. FHFA Housing Price Index showed a 0.4% rise in February, after a downwardly revised 0.4% rise in January. Leading indicators in March rose 0.2%.

European markets ended mixed. FTSE and CAC lost 0.4% and 0.2% respectively while DAX and Italy rose 0.1% and 0.4% respectively.

European Central Bank kept rates unchanged. During the following press conference, Draghi said he expects rates to remain at present or lower levels for an extended period and warned that euro zone inflation might turn negative again in coming months. He also stressed in the conference that the central bank hadn't talked about helicopter money.

Euro climbed against the dollar following the ECB decision and during the press conference, but fell back afterwards following Draghi's hawkish comments on helicopter money.

AT HOME

After gaining about eight tenth of a percent in the initial trade, benchmark indices saw a sustained downward move through the session to end little changed. Sensex settled at 25880, up 36 points while Nifty lost 3 points to finish at 7912, breaking 6-day winning streak. BSE mid-cap and small-cap indices lost half a percent each. BSE Bankex and Finance index gained 2% and 1.2% respectively, becoming top gainers among the sectoral indices while IT and Teck indices fell 1.5% each, becoming top losers.

FIIs net bought stocks and stock futures worth Rs 805 cr and 995 cr respectively but net sold index futures worth Rs 74 cr. DIIs were net buyers to the tune of Rs 66 cr.

Rupee closed at 66.39/$, depreciating 17 paise compared to previous close.

OUTLOOK

Today morning Asian markets are trading with cuts of 0.2%-0.8% and SGX Nifty is suggesting a marginally lower opening for our market.

In yesterday's report we had reiterated the view that 7970-7980, where previous two tops made in December 2015 and January 2016 are placed; continue to be the target as well as the hurdle area, a decisive crossover of which is required for further upmove.

Yesterday, the benchmark, after touching a high of 7978, reversed to end at 7912.

7980 continues to be important hurdle, a decisive crossover of which is required for fresh upmove.

7800-7840 is the support zone on the way down, a breach of which will generate a sell on the hourly chart and would pave the way for the further fall.

Traders are advised to wait for the crossover of 7980-7800 levels on either side for taking a fresh view.

RIL, HDFC Bank and Cairn will report their quarterly earnings today. HDFC Bank is expected to report NII growth of 19.3% at Rs. 7173 cr. Net profit is likely to rise 20.6% to Rs. 3385 cr. Reliance Industries is expected to show a lower profit of Rs 7000 cr as against Rs 7218 cr in the previous quarter. GRM is expected to fall to $10.8/bbl from $11.5.

NIFTY RETREATS FROM THE VICINITY OF 7970 TARGET; 7840 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY RETREATS FROM THE VICINITY OF 7970 TARGET; 7840 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices ended with modest gains with the Dow closing at its highest since July 20, 2015.

Nymex oil future for May rose $1.55 or 3.8% to $42.63 a barrel for its highest close of the year so far on reports citing Iraq that OPEC and other producers would possibly meet in Russia in May to discuss an output freeze proposal. EIA's report showing decline in U.S. production and a lower-than-forecast crude inventory build of 2.1 million barrels also supported. Brent climbed 4% to $45.80 a barrel.

Existing home sales surged 5.1% to 5.33 million units in March.

US dollar index gained more than half a percent

European markets gained anywhere between 0.1%-2% with FTSE at the bottom and Spain at the top of the tally.

Earlier Shanghai Composite fell 2.3% amid reports that China's central bank may not ease as aggressively this year. Nikkei gained 0.2%.

AT HOME

Benchmark indices ended almost flat, taking breath after running hard over last couple of sessions. Sensex settled at 25844, up 28 points while Nifty was unchanged at 7915. BSE mid-cap and small-cap indices gained 0.1% and 0.6% respectively. BSE Metal index soared 3.8%, becoming top gainer among the sectoral indices, followed by 1.8% rise in Consumer Durable index. Energy and Telecom indices were the top losers, giving away 1.2% each.

FIIs net sold stocks and stock futures worth Rs 80 cr and 577 cr respectively but net bought index futures worth Rs 1328 cr. DIIs were net sellers to the tune of Rs 300 cr.

Rupee appreciated 33 paise to end at 66.22/$.

Wipro’s IT services revenue increased by 2.7% sequentially to USD 1,887.6 million in constant currency for the quarter ended March 2016, which was within company's guidance range of USD 1,875-1,912 million. In dollar terms, the same rose 2.4% to USD 1,882 million. In rupee terms revenue rose 6.1% to Rs 13742 cr while consolidated net profit was nearly flat at Rs 2235 cr. The company expects Q1FY17 dollar revenue from its IT services business to be in the range of USD 1,901 million to USD 1,939 million, a growth of 1-3% over Q4FY16. However stripped-off the recent acquisitions, this implies a flat to negative growth guidance.

OUTLOOK

Today morning, except a half a percent lower Shanghai, other Asian markets are trading with gains of 0.5%-2% with Nikkei leading the tally. SGX Nifty is suggesting about 25 points higher opening for our market.

Readers would recall that we have been working with targets of 7870 followed by 7970 ever since 7770 hurdle was taken out. Yesterday, after touching a high of 7950, Nifty retreated to close at 7915.

7970-7980, where previous two tops made in December 2015 and January 2016 are placed, continue to be the hurdle area. A decisive crossover of which would pave the way for the further upside till about 8150, where 20-month moving average is placed.

Meanwhile 7840 continue to be immediate support on the hourly chart, with the stop loss of which trading longs can be held on to.

Indusind Bank will report its quarterly earnings today.

NIFTY SET TO ACHIEVE 7975 TARGET

NIFTY SET TO ACHIEVE 7975 TARGET

WORLD MARKETS                             

While Dow and S & P 500 gained 0.3% each, Nasdaq lost 0.4% yesterday as oil prices rose but tech and consumer discretionary stocks fell after mixed earnings reports.

Nymex oil rose $1.30 or 3.3% to $41.08 a barrel, breaking a four-day losing streak as an oil workers strike in Kuwait nearly halved crude production from the country, overshadowing bearish sentiment following Sunday's failure by oil producers to agree to freeze output levels. Brent added $1.12 to settle at $44.03.

IBM tumble 5.6% despite reporting better-than-expected topline and bottomline as revenue continued to fall and the firm didi not raise its full-year guidance. Netflix plunged 13% after giving lower-than-expected subscriber growth for the second quarter. On the other hand Goldman Sachs rose 2.3% after earnings topped lowered expectations.

Housing starts fell a more-than-expected 8.8% in March to 1.09 million units, the lowest level since October. Building permits dropped 7.7% to a 1.09 million-unit rate last month, the lowest level since March last year.

Dollar index fell about 0.4%. Gold climbed $19 to $1254 an ounce.

European markets rose between 0.5%-2.3% with DAX leading the tally. Germany's ZEW institute's latest Indicator of Economic Sentiment rose for the second month in a row in April to 11.2 points compared to 4.3 in March.

Earlier Nikkei climbed 3.5%, Hang Seng rose 1.3% and Shanghai composite added 0.3%.

AT HOME

Benchmark indices gained about eight tenth of a percent on Monday with Nifty and Sensex extending the winning streak to fifth and fourth straight day respectively and closing at the highest level since 1st January. Sensex added 190 points to settle at 25816 while Nifty finished at 7915, up 64 points. BSE mid-cap and small-cap indices gained 1.3% and 1.1% respectively.  Except a 0.5% and 0.3% cut in Bankex and Auto index respectively, all the BSE sectoral indices closed in green with Realty and IT indices leading the tally, up 4.4% and 3.1% respectively.

India's wholesale inflation for March came in at -0.85% y-o-y as against 0.91% in February.

TCS reported better-than-expected 3.8% q-o-q growth in quarterly net profit at Rs 6341 cr, beating the street estimates for the first time in last seven quarters. Rupee revenue rose 4% to Rs 28449 cr and dollar revenue rose 1.5% to USD 4.2 bn which was in-line. Dollar revenue growth was 2.1% in constant currency. Operating profit grew 1.9% to Rs 7412 cr and margin declined 50 bps to 26.1%. Other income shot up 32% to Rs 917 cr. The company said it expects FY17 to be a strong year as most headwinds seen in FY16 are now behing it.

FIIs net bought stocks, index futures and stock futures worth Rs 978 cr, 631 cr and 1026 cr respectively. DIIs were net sellers to the tune of Rs 313 cr.

Rupee appreciated 9 paise to end at 66.55/$.

OUTLOOK

Today morning, except a half a percent lower Hang Seng, other Asian markets are trading with gains of upto half a percent with Nikkei leading the tally. SGX Nifty is trading around 7970, suggesting about 50 points higher opening when compared to Monday's close of Nifty future.

After Nifty took out the 34-week moving average placed around 7770, we had given targets of 7875, which is 200-DMA, followed by 7975, where previous two tops made in December and January 2015 are placed.

The benchmark soared 64 points on Monday to close at 7915, achieving the 200-DMA target and moving towards the next target of 7975.

A gap-up opening today would see even this target getting achieved. Next major hurdle as well as the target, upon decisive crossover of 7975, would be 8150, where the 20-month moving average is placed. 

7840, the bottom made on Monday would now be the immediate support, with the stop loss of which trading longs can be held on to.

Wipro will report its quarterly earnings today.

STAY LONG WITH THE STOP LOSS OF 7770

STAY LONG WITH THE STOP LOSS OF 7770

WORLD MARKETS                             

US indices ended with modest cuts on Friday with energy sector leading the losses ahead of a highly anticipated weekend meeting of oil producers.

Nymex oil fell $1.14 or 2.8% to $40.36 a barrel. Earlier, Baker Hughes said the weekly oil rig count fell 3 to 351.

Empire State Manufacturing Survey rose nine points in April to 9.6, its highest in more than a year, while industrial production fell a more-than-expected 0.6% in March. Capacity utilization also declined to 74.8%, the lowest level since August 2010. The preliminary consumer sentiment for April was 89.7, missing expectations for a slight rise to March's final read of 91.

Citigroup reported better-than-expected earnings and revenue.

Earlier data showed China's GDP grew at an annual rate of 6.7% in the first quarter, a tad below the fourth-quarter's 6.8% rate. Retail sales edged up to 10.5% in March, while fixed-asset investment growth rose to 10.7% year-on-year in the first quarter. Industrial output growth jumped to 6.8% from 5.4%.

Key European markets lost about four tenth of a percent.

Gold rose $8 to $1235 an ounce.

For the week, Dow and Nadaq rose 1.8% each while S & P 500 rose 1.6%. In Europe, FTSE rose 2.2% while DAX and CAC soared 4.5% each. In Asia, Nikkei climbed 6.5%, Hang Seng soared 4.6% and Shanghai rose 3.1%.

AT HOME

After a big gap up opening, benchmark indices added equal amount of gains through rest of the session to end with hefty gains of just under two percent. Sensex soared 481 points to settle at 25627 while Nifty ended at 7850, up 141 points. BSE mid-cap and small-cap indices gained 0.9% and 1.1% respectively. Both the indices closed at the highest level since 1st January. All the BSE sectoral indices ended in green with Auto index and Bankex leading the tally, up 3.6% and 2.6% respectively.

FIIs net bought stocks and index futures worth Rs 644 cr and 1679 cr respectively but net sold stock futures worth Rs 71 cr. DIIs were net buyers to the tune of Rs 270 cr.

Infosys reported better-than-expected profit 3.8% q-o-q growth in net profit at Rs 3597 cr. Revenue rose 4.1% to Rs 16550 cr. Dollar revenue rose 1.6% to USD 2446 mn and 1.9% in constant currency. The company expects FY17 revenue growth at 11.5%-13.5% in constant currency and 11.8%-13.8% in dollar terms, which is far better than industry guidance.

For the week, Sensex and Nifty gained 3.9% each.

OUTLOOK

Yesterday, the meeting between the world's largest oil producing countries in Doha failed to produce a deal to freeze output and boost sagging crude prices. Nymex oil is down 5.6% at $38.08 on account of this and Brent is down 5.1% to $40.89.

Today morning, Nikkei is down nearly 3%, weighed down by stronger Yen and a powerful earthquake that struck southern Japan on Saturday. Other Asian markets are trading with cuts of upto a percent and half. SGX Nifty is trading around 7890, which is about 25 points higher than Wednesday's close of Nifty future.

In Wednesday's report a decisive crossover of 7778, the top made in March, would open up the further upside till about 7875 where 200-DMA is placed. The benchmark soared 141 points to close at 7850, crossing 7778 and moving towards 7875 target.

A higher opening today would see the target of 7875 getting achieved. Above 7875, next target to eye would be about 7975, where previous two tops made in December and January 2015 are placed.

7770-7720, the gap created by the gap up opening on Wednesday, would now serve as the immediate support, with the stop loss of which trading longs should be held on to.

NIFTY ON TRACK TO ACHIEVE 7778 TARGET

NIFTY ON TRACK TO ACHIEVE 7778 TARGET

WORLD MARKETS                             

US indices climbed 0.8%-1% yesterday with energy stocks leading as oil topped $42 barrel.

WTI crude climbed $1.81 or 4.5% to $42.17 a barrel to hit a fresh high for the year so far and settle at its highest since late November on reports that Saudi Arabia and Russia have reached a consensus on oil freeze. Brent rose 4.3% to $44.69.

Alcoa reported better-than-expected adjusted first-quarter earnings but revenues missed estimates. The aluminum producer also announced job cuts. The stock closed down 2.7%.

US March import prices rose 0.2% from the prior month for the first time in nine months, although the gain was well below the expected 1% rise. Export prices were unchanged. U.S. small business confidence fell to a fresh two-year low in March at 92.6, amid persistent worries about sales and profits.

Yen stood at 108.5 against the greenback, marking the first retreat in April. US dollar index rose marginally.

IMF downgraded its forecast for world economic growth for 2016 by 0.2% to 3.2%. The agency however maintained forecast for India at 7.5%.

European markets, except a 1.6% cut in Italy, gained 0.5%-0.8%.

AT HOME

Benchmark indices gained half a percent yesterday, extending the winning streak to third straight day. Sensex settled at 25145, up 123 points while Nifty added 38 points to finish at 7709. BSE mid-cap and small-cap indices gained 1% and 0.9% respectively. Except a 1.4% cut in Metal index, all the BSE sectoral indices ended higher with Auto and Industrial indices leading the tally, up 1.6% and 1.4% respectively.

FIIs net bought stocks and index futures worth Rs 308 cr and 117 cr respectively but net sold stock futures worth Rs 242 cr. DIIs were net sellers to the tune of Rs 62 cr.

Rupee ended unchanged at 66.43/$.

Indian Meteorological Department (IMD) yesterday said that monsoon is likely to be above average at 106 percent of long period average (LPA). This was in-line with Private weather forecaster Skymet, which on Monday said that 2016 monsoon will be above normal and will average at 105% level of LPA with slim chances of a drought.

India's retail inflation, as measure by the CPI, fell to 4.83% in March as against estimate of 5.05% and February’s 5.18% level.

After three consecutive months of decline, industrial output, measured by IIP, rose 2% in February, compared to estimates of 1.5% growth and contraction of 1.5% registered in January.

OUTLOOK

Today morning Asian markets are trading with gains of 0.5%-2% with Nikkei leading on the way up and SGX Nifty is suggesting about 40 points higher opening for our market.

In yesterday's report we had mentioned that having crossed 7650 hurdle, next target on the way up is 7778, the top made in March and that one should stay long with the stop loss of 7590.

The benchmark yesterday gained 38 points to settle at 7709 and is set to open about 50 points higher today.

7778 continues to be the hurdle as well as the upside target to eye. A decisive crossover of 7778 would open up the further upside till about 7875 where 200-DMA is placed.

Traders would do well to book some profit in long positions around 7778 and trail stop loss in remaining ones to 7610, which is the immediate support on the hourly chart.

Today is also the last trading day of this week as markets will be shut tomorrow and day after for Dr Ambedkar Jayanti and Ram Navmi respectively.

Infosys will report its quarterly earnings on Friday.

NIFTY REBOUNDS SHARPLY FROM THE VICINITY OF 34-DMA SUPPORT

NIFTY REBOUNDS SHARPLY FROM THE VICINITY OF 34-DMA SUPPORT

WORLD MARKETS                             

US indices fell 0.1%-0.4% yesterday, paring gains of nearly a percent made in the initial trade.

Nymex oil rose 64 cents or 1.6% to $40.36 a barrel, its highest close since Dec. 3 ahead of the April 17 meeting of oil producers in Doha, Qatar, aimed at freezing current output levels. Brent gained 2.1% to settle at $42.83 a barrel. Dollar index ended slightly lower. Gold jumped $14 to $1258 an ounce.

European markets, except a 0.1% lower FTSE, gained 0.2%-1.2% with Italy on the top as fresh reports supported hopes the Italian government will soon form a plan to set up a state-backed fund that will buy bad loans held by the country's banks. Basic Resources was one of Europe's top-performing sectors as several metal prices ticked higher.

Earlier Shanghai composite jumped more 1.6% amid some encouraging inflation data. Producer prices declined a less-than-expected 4.3% in March from a year earlier while consumer prices were unchanged from February's rate with a 2.3% rise last month.

AT HOME

After falling about half a percent, benchmark indices saw a dramatic reversal in the late noon trade to end with hefty gains of a percent and half. Sensex soared 348 points to settle at 25022 while Nifty ended at 7671, up 116 points. BSE mid-cap and small-cap indices gained 1.1% and 0.6% respectively. All the BSE sectoral indices closed in green with Telecom and Teck indices leading the tally, up 3.9% and 2.2% respectively.

FIIs net bought stocks worth Rs 107 cr but net sold index futures and stock futures worth Rs 29 cr and 374 cr respectively. DIIs were net buyers to the tune of Rs 304 cr.

Rupee appreciated 5 paise to end at 66.43/$.

Private weather forecaster Skymet yesterday said that monsoon this year is likely to remain at 105% level of the long-period average (LPA). After two years of below average rainfall, monsoon this year are extremely important for revival of rural economy

OUTLOOK

Today morning, Nikkei is up more than a percent, Shanghai and Hang Seng are marginally in the red, other Asian markets are trading with modest gains while SGX Nifty is suggesting a marginally lower start for our market.

For past couple of sessions we have been saying that Nifty, after a hefty run-up, should see a correction till about 34-DMA. 34-DMA, which itself is upward moving, was placed around 7470 yesterday. The benchmark, after touching a low of 7517 yesterday, rebounded sharply to end at 7671, taking out the immediate hurdle of 7650.

7778, the top made in March, is the next upside target to eye. 7590 is the immediate support on the hourly chart with the stop loss of which long positions can be held on to.

India’s March CPI and February IIP data will be out today. CPI is expected to show a reading of 5.05-5.18. In February CPI had dipped to a four-month low of 5.18%. IIP is expected to show a growth of 1.5% as against a contraction of 1.5% in January.