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.