NIFTY MARCHES TOWARDS 8243 TARGET; GDP DATA IN FOCUS

NIFTY MARCHES TOWARDS 8243 TARGET; GDP DATA IN FOCUS

WORLD MARKETS                             

US markets were shut yesterday for the Memorial Day holiday.

European markets gained upto 0.6% with DAX hitting one month high. German import prices in April fell 6.6% year-on-year, faster than the 6.2% forecast. France's economy grew by 0.6% in the first quarter, faster than the initial 0.5% forecast.

Brent crude futures rose 0.9% to $49.76 barrel while Nymex oil traded at $49.63, up 30 cents.

AT HOME

Benchmark indices gained about three tenth of a percent, extending the winning streak to fifth straight day and closing at eight month high. Sensex gained 72 points to settle at 26726 while Nifty finished at 8178, up 22 points. BSE mid-cap and small-cap indices gained 0.4% each. BSE Metal and IT indices climbed 2.3% and 1.3% respectively, becoming top gainers among the sectoral indices while Realty and Oil & Gas indices were the top losers, down 1% and 0.4% respectively.

FIIs net bought stocks and index futures worth Rs 356 cr and 556 cr respectively but net sold stock futures worth Rs 378 cr. DIIs were net sellers to the tune of Rs 211 cr.

Rupee depreciated 13 paise to end at 67.16/$.

M & M missed expectations on profit & operational front but revenue was ahead of estimates. Profit rose 6% to Rs 584 cr while revenue grew 14.5% to Rs 10801 cr. Operating profit was up 16.4% at Rs 1049 cr and margin expanded by 30 bps to 9.7%.

Tata Motors posted three-fold or 201% rise in its Jan-March consolidated net profit at Rs 5177 cr driven by strong performance of JLR and robust volume growth of heavy and medium commercial vehicles. Sales were up 19% at Rs 79926 cr. JLR margins improved to 16.2% from 14.4%. Profit of JLR’s China JV more than doubled.

Sun Pharma reported lower-than-expected results. Revenue rose 25% to Rs 7634 cr. Profit was up 92% to Rs 1713 cr. Operating margin stood at 33%. The company said it will consider buyback on 23rd June.

OUTLOOK

Today morning Asian markets are trading flat to modestly higher and SGX Nifty is suggesting about 15 points higher opening for our market.

Nifty yesterday touched a high of 8200 before closing at 8178, moving towards the 8243 target, which is the 61.8% retracement level of the entire 9119-6825 fall.

8243 continues to be the upside target as well as the hurdle to eye. 8015, the 38.2% retracement level of the recent 7716-8200 upmove, is the immediate support with the stop-loss of which trading longs can be held on to. However traders

India's GDP/GVA data for Q4 as well as FY16 will be released today. FY16 as well as Q4 GVA and GDP are expected to have grown at 7.3% and 7.6% respectively.