7700-7810 IS THE IMMEDIATE RANGE

7700-7810 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

Dow ended marginally higher, S & P 500 a tad lower and Nasdaq lost 0.2% yesterday ahead of Friday's non-farm payroll data. Consumer discretionary led declines while Energy led advancers.

Weekly jobless claims rose to 274,000

Nymex oil, after gaining more than 4%, pared gains to close 1.2% or 54 cents higher at $44.32 a barrel. Initial gains were supported by concerns of a near-term supply shortage due to a huge wildfire near Canada's oil sands and escalating tensions in Libya. Brent rose 0.9% or 39 cents to $45.01.

Dollar index rose for a third-straight day with gains of more than half a percent.

Earlier, China Caixin services PMI came in at 51.8 for April marking moderation from 52.2 in March.

In Europe, FTSE, DAX and Spain gained 0.1%-0.4% while France and Italy lost 0.1% each. Britain's April services PMI hit 52.3, the lowest since February 2013 and down from the previous month's reading of 53.7.

AT HOME

Sensex and Nifty gained 0.6% and 0.4% respectively today and broke the three-day losing streak. Sensex added 160 points to settle at 25262 while Nifty finished at 7735, up 29 points. BSE mid-cap and small-cap indices however ended marginally in the red. BSE Capital Goods index climbed 1.6%, becoming top gainer among the sectoral indices, followed by 0.9% rise in Industrial index. Telecom index tumbled 1.8% to lead the losers, followed by half a percent cut in Consumer Durable index.

FIIs net sold stocks and index futures worth Rs 389 cr and 993 cr respectively but net bought stock futures worth Rs 102 cr. DIIs were net buyers to the tune of Rs 252 cr.

Rupee appreciated 1 paise to end at 66.55/$.

Eicher Motors reported 71.3% jump in net profit at Rs 334.5 cr while total income rose 46.6% to Rs 3765 cr. EBITDA rose 75% to Rs 640 crore while EBITDA margin stood at 17% versus 14.3% year-on-year.

The Lok Sabha yesterday passed the Insolvency and Bankruptcy Code 2015. The law once implemented will lead to speedier insolvency resolutions and improve ease of doing business in India. As per the law, cases of insolvency will be resolved within a period 180 days, which can be extended by another 90 days.

Hero MotoCorp's Jan-March quarter met street estimates with net profit rising 71% to Rs 814 cr while total income rose at better-than-expected 11% to Rs 7512 cr. EBIDTA rose 40% to Rs 1176 cr while EBIDTA margin was at 15.7% vs 12.3% y-o-y.

RBI yesterday unveiled draft guidelines for 'on top' bank licenses according to the which, non-banking finance companies and resident individuals or professionals with 10 years of experience in banking and finance will be eligible to apply. Also eligible are private sector entities and groups owned and controlled by residents, provided they have total assets worth at least ₹5,000 crore, with the non-financial group business not accounting for more than 40 per cent of the total assets or the gross income. These norms could encourage big non-banking financial players such as Bajaj Finserv Ltd, L&T Finance Holdings, M & M finance, Reliance Capital and Shriram Capital to throw their hats in the banking ring.

The Lok Sabha yesterday approved the Finance Bill with minor amendments.

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.

Nifty, after achieving the downside target of 7700 on Wednesday rebounded yesterday to touch a high of 7777 but closed off the day high at 7735.

7700 continues to be immediate support upon breach of which 7635, where the trendline adjoining bottoms made on 16th March and 11th April is placed, would be the next target to eye.

7810 continues to be immediate hurdle, a sustained trading above which is required to generate a buy on the hourly chart.

Titan will report its quarterly earnings today.

Key data to watch out today would be the US April non-farm payroll where addition of 2 lac jobs is expected. The data will likely influence expectations of whether the Federal Reserve will pull the trigger in June.