NIFTY MOVES CLOSER TO 8715 TARGET; KEY EARNINGS IN FOCUS

NIFTY MOVES CLOSER TO 8715 TARGET; KEY EARNINGS IN FOCUS

WORLD MARKETS                             

Dow ended 0.1% lower while S & P 500 and Nasdaq rose 0.2% and 0.3% yesterday amidst decline in oil and gains in technology stocks like Apple, Amazon and Facebook.

Facebook gained more than a percent at a record after reporting earnings that beat on both the top and bottom line. Ford punged 8% after the firm posted quarterly earnings that missed expectations and said its full-year earnings forecast was at risk with U.S. auto sales expected to fall in the second half.

In economic news, weekly jobless claims rose to 266,000. The U.S. advance June goods trade deficit was $63.3 billion, up from $61.1 billion in May.

US oil fell 78 cents or 1.9% at to $41.14 a barrel, correcting more than 20% from its high for the year so far.

Dollar index was off about 0.4%. Gold rose $6 to $1332 an ounce.

In Europe, FTSE and DAX fell 0.4%, CAC was off 0.6% while Italy and Spain tumbled 2% each.

AT HOME

Benchmark indices ended gained about six tenth of a percent on the expiry day of the July derivative series with Nifty and Sensex closing at the highest level since 16 April 2015 and 7th August 2015 respectively. Sensex added 184 points to settle at 28207 while Nifty finished at 8666, up 51 points. BSE mid-cap and small-cap indices too gained 0.6% each. BSE Consumer Durable index soared 2.3%, becoming top gainer among the sectoral indices, followed by 1.5% rise in FMCG and Consumer Discretionary Goods & Services index.

FIIs net bought stocks and index futures worth Rs 1767 cr and 81 cr respectively but net sold stock futures worth Rs 718 cr. DIIs were net sellers to the tune of Rs 1074 cr.

Rupee appreciated 10 paise to end at 67.04/$.

PNB reported lower-than-expected 58% dip in net profit at Rs 306 cr. NII fell 9.8% to Rs 3699 cr. Provisions for bad loans jumped 51% to Rs 2738 cr y-o-y but fell 74% q-o-q. Gross NPA ratio increased 85 bps q-o-q to 13.75% and net NPA rose 55 bps to 9.16%.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally lower start for our market.

Just to reiterate, we have been working with initial target of 8700-8715 and next target of 8845 ever since Nifty broke out of the 9-day, 8595-8475, consolidation on Monday and had advised holding on to long positions with the stop loss of 8545 despite Tuesday's correction.

The benchmark yesterday soared 51 points to settle at 8666, closing at the highest level since April 16 2015.

8700-8715 continues to be immediate target above which 8845 would be the major target to eye. 8570 is now the immediate support, which should serve as the stop loss for trading longs.

ICICI Bank and L & T will report their quarterly earnings today.

Bank of Japan, at the end of its two day meeting today, is expected to introduce fresh stimulus measures, which could include pushing interest rates deeper into negative territory or expanding its asset-purchase program, which buys securities including Japanese government bonds and exchange-traded funds.

NIFTY REBOUNDS FROM THE VICINITY OF 8545 SUPPORT; 8715 CONTINUES TO BE IMMEDIATE TARGET

NIFTY REBOUNDS FROM THE VICINITY OF 8545 SUPPORT; 8715 CONTINUES TO BE IMMEDIATE TARGET

WORLD MARKETS                             

Dow and S & P 500 ended marginally lower while Nasdaq, aided by gains in apple, rose 0.6% yesterday.

Federal Reserve, as expected, kept interest rates unchanged but noted that the labor market has "strengthened" and that "near-term risks to the economic outlook have diminished."

Apple climbed 6.5% for its best day since April 2014 after reporting better-than-expected earnings. The firm also gave strong current-quarter revenue guidance and posted iPhone and iPad shipments above estimates. Coca-Cola fell 3.3% after missing on revenue and cutting organic revenue forecasts for the year.

US oil fell $1 or 2.3% to $41.92 a barrel after the EIA reported a surprise crude stock build of 1.7 million barrels.

Dollar index, after initially spiking following the Fed announcement ended lower about a third of a percent. Gold gained $6 to $1327 an ounce, a two week high.

European markets gained 0.4%-1.2%

AT HOME

Benchmark indices managed to end with modest gains after a roller-coaster session ahead of the expiry of the July derivative series. Sensex settled at 28024, up 48 points while Nifty added 25 points to finish at 8616. BSE mid-cap and small-cap indices gained 0.6% and 0.5% respectively. BSE Telecom index gained 1.3%, becoming top gainer among the sectoral indices, followed by 0.9% uptick in Finance index and Bankex.

FIIs net bought stocks and index futures worth Rs 405 cr and 83 cr respectively but net sold stock futures worth Rs 213 cr. DIIs were net sellers to the tune of Rs 152 cr.

Rupee appreciated 13 paise to end at 67.14/$.

Yes Bank reported better-than-expected 32.8% growth in net profit at Rs 732 cr. NII increased 24.2% to Rs 1317 cr. Asset quality remained stable as gross NPA were at 0.79% as against 0.76% q-o-q and net NPA remained unchanged at 0.29%.

Bajaj Auto was a miss on profit which rose 2.2% to Rs 978 cr on revenue of Rs 6089 cr, which were up 3.5% and in-line. Sales volume fell 1.8% y-o-y to 9.94 lac units due to weakness in exports. Net realization fell 6% to Rs 57825 per unit. Operating profit grew 3.2% to Rs 1176 cr and margin contracted by 10 bps to 19.3%, both of which were a miss.

HDFC reported better-than-expected 37.5% growth in standalone net profit at Rs 1871 cr. Total income increased 19.4% to Rs 8382 cr.  NII rose 9.6% to Rs 2234 cr. Gross GNPAs rose to 0.75% from 0.7% q-o-q. NIM fell to 3.8% from 4%.

Dabur's net profit jumped 11.8% to Rs 293 cr and total income grew 1.1% to Rs 1928 cr. Volume growth stood at 4.1% and missed the estimate. Margins increased to 18.1% from 16.8% y-o-y.

Union Cabinet yesterday approved amendments to the GST Constitutional Act. The Cabinet has removed the controversial one percent manufacturing tax from the Constitutional Bill, which was one of the demands of the Opposition, led by Congress. The government has also included five years compensation clause for state governments for any loss that they may incur. Earlier, this time period was mentioned as 'up to' five years in the draft GST Bill. The Bill will also mention that dispute resolution will be decided by the GST council.

OUTLOOK

Today morning Asian markets are trading with cuts of upto a percent with Nikkei leading the losses and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had reiterated the view that 8545 is the immediate support on the hourly chart with the stop loss of which trading longs can be held on to.

The benchmark, after touching a low of 8572, rebounded to close at 8616, holding on to the support mentioned above.

8545-8550 continues to be immediate support, a breach of which will generate a sell on the hourly chart and would pave the way for the further correction. On the way up 8700-8715 continues to be immediate target above which 8845 would be the next major target.

Stay long with the stop-loss of 8545 continues to be the advise.

8545 CONTINUES TO BE IMMEDIATE SUPPORT; FED IN FOCUS

8545 CONTINUES TO BE IMMEDIATE SUPPORT; FED IN FOCUS

WORLD MARKETS                             

Dow ended marginally in the red, while S & P 500 and Nasdaq gained 0.03% and 0.24% yesterday amid major corporate earnings and ahead of the Fed decision.

McDonald's plunged 4.5% for its worst day since July 2009 after same-store sales growth disappointed. 3M fell 1.1% after it lowered its guidance for 2016 sales growth. Verizon fell 1.9% as earnings topped expectations but revenue was a miss. On the flip side, Caterpillar, DuPont and United Technologies climbed after reporting earnings that beat on both the top and bottom line.

In economic news, the flash Markit services PMI edged down to 50.9 in July from 51.4 in June. New U.S. single-family home sales rose 3.5% in June to 592,000 units last month, topping expectations and the highest level since February 2008. The Conference Board's consumer confidence index was 97.3 in July, a touch below June's 97.4 print.

WTI crude fell 21 cents or half a percent to $42.92 a barrel. Dollar index was mildly lower.

European markets, except a 0.2% lower Spain, gained upto half a percent with DAX leading the tally.

AT HOME

After trading in a narrow range for better part of the day, benchmark indices saw a sudden sell-off in last hour to end with cuts of nearly half a percent. Sensex settled at 27977, down 119 points while Nifty lost 45 points to finish at 8591. BSE mid-cap index managed to gain 0.2% but the small-cap index tumbled 0.7%. Except a 0.4% higher IT index and 0.1% gain in Power and Utilities indices, all the BSE sectoral indices ended in red with Realty index leading the tally, down 1.3%, followed by 1.1% cut in Healthcare and Auto indices.

FIIs net bought stocks and index futures worth Rs 670 cr and 394 cr respectively but net sold stock futures worth Rs 494 cr. DIIs were net sellers to the tune of Rs 418 cr.

Rupee appreciated 8 paise to end at 67.27/$.

Maruti reported better-than-expected 23% growth in net profit at Rs 1486 cr, driven majorly by other income. Revenue growth was lower-than-expected, rising 11.6% to Rs 14927 cr. Operational performance met estimates. Operating profit grew 2.25% to Rs 2216 cr and margin contracted by 140 bps to 14.8%. Realization rose 9% y-o-y to Rs 4.28 lac/unit.

Dr Reddy's Lab missed expectations on all counts with consolidated net profit falling by 76.3% y-o-y to Rs 153.5 cr. Revenue fell 14% to Rs 3222 cr. Operating profit slipped 60% to Rs 398 cr and margin contracted by 1390 bps to 12.6%.

ACC reported 3.3% dip in revenue at Rs 2917 cr but net profit soared 81% to Rs 238 cr as EBIDTA rose 37% to Rs 457 cr and operating margin improved to 15.7% from 11.1%. EBIDTA/ton stood at Rs. 670 and was better-than-expected.

Ambuja Cement reported 77% rise in standalone net profit at Rs 400 cr. Income rose 2% to Rs 2561 cr. EBIDTA grew 58% to Rs 582 cr and operating margin shot up to 20% from 15%.

Zee reported 22% growth in consolidated net profit at Rs 217 cr. Income rose 18.5% to Rs 1572 cr. Advertising revenue rose 19.2% to Rs 912 cr.

OUTLOOK

Today morning, Nikkei is up more than a percent, other Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally higher start for our market.

After Nifty crossed the 8595 hurdle on Monday, we had advised holding on to trading longs with the stop loss of 8545 for the immediate target of 8700-8715 followed by next one at 8845.

The benchmark, after touching a high of 8645 in the initial trade, plunged sharply in last hour to end at 8591.

8545 continues to be immediate support to eye a sustained trading below which will generate a sell on the hourly chart. And therefore, 8545 continues to be stop loss for trading longs.

Asian Paints, Bajaj Auto, Bharti Airtel, HDFC, JSW Steel and Yes Bank will report their quarterly earnings today.

The Federal Open Market Committee is scheduled to conclude its two-day meeting today. Markets do not expect the Fed to raise interest rates, but will watch for indications on the timing of the next hike.

NIFTY BREAKS OUT OF THE 9 DAY CONSOLIDATION; STAY LONG WITH THE STOP LOSS OF 8550

NIFTY BREAKS OUT OF THE 9 DAY CONSOLIDATION; STAY LONG WITH THE STOP LOSS OF 8550

WORLD MARKETS                             

US indices fell upto 0.4% yesterday as falling oil price weighed on energy stocks.

WTI crude fell $1.06 or 2.4% to $43.13 to hit its lowest since late April after data showed an inventory rise of 1.1 million barrels at the Cushing, Oklahoma delivery base for U.S. crude futures in the week to July 22.  Brent finished down 97 cents, or 2.12%, at $44.72.

Dollar index ended modestly lower. Gold fell $4 to $1320 an ounce.

European markets ended mixed with changes of upto half a percent. German Ifo business climate index fell slightly to 108.3 in July from 108.7 in June, but was ahead of expectations.

AT HOME

After trading in a narrow range for last nine sessions, benchmark indices broke out on the upside by gaining more than a percent with Nifty and Sesex closing at the highest level since 16th April 2015 and 10th August 2015 respectively. Sensex added 292 points to settle at 28095 while Nifty finished at 8636, up 94 points. BSE mid-cap and small-cap indices gained 1% each. All the BSE sectoral indices ended in green with Bankex and Finance indices leading the tally, up 1.6% each.

FIIs net bought stocks worth Rs 891 cr but net sold index futures and stock futures worth Rs 288 cr and 631 cr respectively. DIIs were net sellers to the tune of Rs 68 cr.

Rupee depreciated 26 paise to end at 67.35/$.

OUTLOOK

Today morning Nikkei is down more than a percent owing to stronger Yen, other Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

For last couple of sessions we have been mentioning that Nifty is stuck in 8595-8475 range, a breach of which, on either side, is required for fresh move.

The benchmark yesterday surged to close at 8636, breaking out of the above mentioned range on the upside.

While 8700-8715 is the immediate target, 8845, the top made in April 2015, is the next major target to eye.

8550 is the immediate support on the hourly chart, with the stop loss of which, trading longs should be held on to.

Maruti, Dr Reddy, ZEEL, ACC, Ambuja Cement and TVS Motors will report their quarterly earnings today.

US Fed begins its two-day meeting today. While the central bank is not generally expected to raise rates, indications in the statement on the timing of the next hike will be key.

8595-8475 CONTINUES TO BE IMMEDIATE RANGE

8595-8475 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

US indices gained 0.3%-0.5% on Friday with the S&P hitting a new record high amidst mixed earnings and an upbeat U.S. manufacturing report.

US manufacturing PMI for July rose to 52.9 from 51.3 to hit its best level since October.

Earnings were mixed. While GE, American Airline, Honeywell, Stanley Black & Decker, and Whirlpool topped estimate, Starbucks, Chipotle, and Skechers were among the misses.

WTI crude fell 56 cents or 1.25% to $44.19 a barrel after data showed the number of rigs operating in the U.S. rose for a fourth consecutive week to 371. Brent fell 1% to $45.75.

Dollar index gained and Gold fell $8 to $1323 an ounce.

In Europe, while FTSE rose half a percent, other markets ended mixed with modest changes. Eurozone PMI rose to 52.9 in July, above expectations of 52.5. Pound fell to $1.31 after UK services and manufacturing composite index fell to its weakest level since early 2009, to 47.7 from 52.4 in June. The PMI decline adds to expectations that the Bank of England will up stimulus when policymakers meet next month.

For the week Dow, S & P 500 and Nasdaq gained 0.3%, 0.6% and 1.4% respectively, extending the winning streak to fourth straight week. . In Europe, FTSE, DAX and CAC gained 0.9%, 0.8% and 0.2% respectively.

AT HOME

After a flattish start, benchmark indices saw some gains through the choppy session to finally end higher by a third of a percent. Sensex settled at 27803, up 93 points while Nifty added 31 points to finish at 8541. BSE mid-cap and small-cap indices rose 1% and 0.8% respectively. Except a 0.3% lower IT index, all the sectoral indices ended in green with BSE Power and Utilities indices leading the tally, up 1.4% each followed by 1.3% gain in Metal and Industrial indices.

FIIs net bought stocks and index futures worth Rs 438 cr and 559 cr respectively but net sold stock futures worth Rs 484 cr. DIIs were net sellers to the tune of Rs 366 cr.

Rupee appreciated 9 paise to end at 67.08/$.

For the week, Nifty ended absolutely flat while Sensex lost 0.1%.

Axis Bank disappointed on all counts with the profit falling 21.4% to Rs 1,555.5 crore on yearly basis, impacted by sharp surge in provisions. NII grew 11.4% to Rs 4517 cr. Provisions for bad loans increased sharply by 81% q-o-q to Rs 2118 cr. Gross NPA climbed 87 bps to 2.54% and net NPA rose 38 bps to 1.08%.

Vedanta sweetened merger terms for Cairn India minority shareholder according to which later will receive, for each equity share held, one equity share in Vedanta and four redeemable preference shares with a face value of Rs 10 in Vedanta. This translates to implied premium of 20% to one month volume-weighted average price (VWAP) of Cairn India share price.

OUTLOOK

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

Nifty has been trading within the 8595-8475 range for last 9 sessions and a breach of this range, on either side, is required for the fresh direction as we have been mentioning.

A decisive crossover of 8595 would open up the space for the further upside till about 8845, the top made in April 2015. A breach of 8475 can take the benchmark to 8400.

NIFTY AGAIN RESISTED NEAR 8595 MARK; 8475 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY AGAIN RESISTED NEAR 8595 MARK; 8475 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices fell 0.3%-0.4% with the Dow snapping 9-day winning streak, reacting to fall in oil and consolidating gains ahead of next week's Fed meeting.

US oil fell 2.2% to $44.75 a barrel. Brent fell 2.1% to $46.20.

Earnings were mixed. Southwest Airlines, Sherwin-Williams, and Intel were among the notable disappointments while GM and Ebay topped estimates.

Initial jobless claims fell by 1000 to 253000, lower than the expectation of 265000 figure.

European markets ended mixed with modest changes. European Central Bank left key interest rates unchanged as expected. ECB President Mario Draghi, at a press conference, said that the central bank was ready to act if necessary but officials wanted to "reassess the underlying macroeconomic conditions" and data before making a decision.

Dollar index eased to 96.96 from 97.14. Gold rose 0.9% to $1331.

AT HOME

The day belonged to bears as benchmark indices, after trading in a narrow range in the morning, slipped in the noon session to end lower by about seven tenth of a percent. Sensex lost 205 points to settle at 27711 while Nifty finished at 8510, down 56 points. BSE mid-cap and small-cap indices lost 0.2% and 0.1% respectively. BSE Power index fell 2.1%, becoming top loser among sectoral indices, followed by 1.7% cut in Utilities index and Bankex. Telecom and FMCG indices gained 0.2% each.

FIIs net bought stocks and index futures worth Rs 420 cr and 332 cr respectively but net sold stock futures worth Rs 46 cr. DIIs were net sellers to the tune of Rs 372 cr.

Rupee appreciated 2 paise to end at 67.17/$.

HDFC Bank reported in-line with estimated 20.14% rise in net profit at Rs 3239 cr for the April-June quarter. NII grew 21.8% to Rs 7781 cr. Provisions for bad loans rose 19% y-o-y and 31% q-o-q to Rs 867 cr. Asset quality slightly weakened with gross NPAs rising 10 bps q-o-q to 1.04% and net NPA by 4 bps to 0.32%.

ITC reported profit growth of 10.1% at Rs 2385 cr. Revenue rose 8.3% to Rs 13253 cr. Operating profit grew 8.4% to Rs 3526 cr and margin remained unchanged at 26.6%. Cigarette volumes grew at 3%.

Kotak Mahindra was a slight miss on earnings and asset quality also weakened. Standalone net profit rose 291% to Rs 742 cr y-o-y. NII grew 20.1% to Rs 1919 cr. Provisions for bad loans jumped 41.2% y-o-y and 10.4% q-o-q to Rs 179.5 cr. Gross NPA rose 14 bps to 2.5% and net NPA 15 bps to 1.21%.

OUTLOOK

Today morning Nikkei is down nearly a percent and the yen is trading stronger against the dollar after Bank of Japan governor, in a BBC interview broadcast yesterday, ruled out the possibility of "helicopter money" - the colloquial name for "money-financed fiscal programs" - to tackle deflation in Japan, amid building expectations that policymakers were gearing up to introduce more stimulus.

Other Asian markets are trading with cuts of upto half a percent and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that in the latest weekly and subsequent daily reports we had mentioned that after a steep run-up, Nifty had formed a negative divergence on the hourly chart and a consolidation/correction in the short term cannot be ruled out.

The benchmark has traded in a narrow range this week and yesterday, after touching a high of 8585, slipped to end at 8510, vindicating above view.

As we have been mentioning, 8595, the top made last week, continues to be the immediate hurdle to eye, a crossover of which is required for fresh upmove. On the way down 8475 continues to be immediate support, a breach of which can take Nifty to 8400.

Axis Bank will report its quarterly earnings today.

8475-8595 CONTINUES TO BE IMMEDIATE RANGE

8475-8595 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS                             

While Dow and S & P 500 gained 0.2% and 0.4% respectively, Nasdaq soared 1.1% yesterday on the back of better-than-expected earnings.

Microsoft soared more than 5% following a beat on earnings and revenue as its cloud product Azure saw revenue growth of 102%. Morgan Stanley joined positive bank results streak by reporting earnings of 75 cents per share versus consensus expectations of 59 cents.

U.S. housing starts rose more than expected in June. Fed funds futures rates showed an uptick in rate hike expectations.

The U.S. dollar hit a four-month high at 97.14. Gold fell 1.4% to $133 per ounce.

US oil rose 29 cents to $44.94 after weekly EIA data showed U.S. crude oil inventories fell by 2.3 million barrels for the ninth consecutive decline in stockpiles. Brent rose more than a percent to $47.

European markets gained 0.5%-1.6% with DAX leading the tally. Sterling moved higher after UK's unemployment rate fell to 4.9% in three months to May, hitting its lowest since 2005 and a report on economic impact from last month's Brexit vote, by the Bank of England, showed no clear evidence of slowing economic activity, with signs that demand for credit was easing and companies did not expect any near-term impact on capital spending.

AT HOME

After a positive start, benchmark indices added some more gains through the session to end with gains of nearly half a percent, with Nifty closing at fresh 11-month high. Sensex added 128 points to settle at 27916 while Nifty finished at 8566, up 37 points. BSE mid-cap and small-cap indices gained 0.9% and 1% respectively. Except a 0.2% and 0.1% cut in BSE Consumer Durable and Telecom indices respectively, all the sectoral indices ended in green with Healthcare and Realty indices leading the tally, up 2.4% each.

FIIs net bought stocks and index futures worth Rs 215 cr and 46 cr respectively but net sold stock futures worth Rs 875 cr. DIIs were net sellers to the tune of Rs 45 cr.

Rupee depreciated 10 paise to end at 67.20/$.

OUTLOOK

Today morning, Nikkei is up more than a percent on weaker Yen and stimulus hopes. Other Asian markets are trading with modest gains and SGX Nifty is suggesting a flattish start for our market.

After Nifty bounced back from our indicated 8475 support on Tuesday, in yesterday's report we had said that traders should wait for the breach of 8475-8595 range where 8595 is the top made last week. Yesterday, the benchmark builded on Tuesday's recovery by gaining 37 points to end at 8566.

8595-8475 continues to be immediate range, a breach of which, on either side, is required for the fresh upmove. While 8655, the top made last July, would be the immediate target above 8595, looking at the weekly charts, a decisive crossover of 8595 would open up the space for the further upside till about 8845, the top made in April 2015. Below 8475, 8400 would be the next downside target to eye.

ITC, HDFC Bank and Kotak Mahindra Bank will report their quarterly earnings today.

ECB will hold its first monetary policy meeting since the U.K. voted on June 23 to leave the European Union.

NIFTY REBOUNDS AFTER TESTING 8475 SUPPORT; 8595 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY REBOUNDS AFTER TESTING 8475 SUPPORT; 8595 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices ended mixed with Dow rising 0.1% while S & P 500 and Nasdaq fell 0.1% and 0.4% respectively

Netfilix tumbled 14% after beat on earnings Monday but subscriber numbers that missed guidance. Bank earnings continued to surprise with Goldman Sachs posting better-than-expected results yesterday.

U.S. housing starts rose more than expected in June, at a pace of 1.19 million units.

In its World Economic Outlook published yesterday, the IMF lowered its 2016 global growth forecast by 10 bps to 3.1%. 2017 forecast was also cut by 10 bps to 3.4%.

European markets, except a flat FTSE, fell between 0.5%-0.8%. The Zew Institute's German economic index, owing to Brexit uncertainty, fell to -6.8 in July, the lowest level since November 2012, from 19.2 in the previous month. U.K. inflation rose 0.5% y-o-y in June.

WTI oil fell 59 cents or 1.3%to $44.65 per barrel. Brent settled at $46.66.

Dollar index rose to hit its highest level since March 10.

AT HOME

After trading in a narrow range in first half, benchmark indices tuned volatile later, first falling about three fourth of a percent from the top of the day and then recouping all the losses to finally end higher by about a fifth of a percent. Sensex settled at 27788, up 41 points while Nifty added 20 points to finish at 8529. BSE mid-cap index gained 0.2% but the small-cap index fell 0.1%. BSE Oil & Gas and Energy indices gained 1.9% and 1.4% respectively, becoming top gainers among the sectoral indices while FMCG and Consumer Durable indices were the top losers, down 0.6% and 0.3% respectively.

FIIs net bought stocks and index futures worth Rs 549 cr and 553 cr respectively but net sold stock futures worth Rs 236 cr. DIIs were net sellers to the tune of Rs 377 cr.

Rupee appreciated 10 paise to end at 67.10/$.

Ultratech's profit and operational numbers beat expectations but revenue was a miss. Net profit climbed 26% to Rs 758 cr while revenue rose 3.8% to Rs 6232 cr. Sales volume was up 6.4% to 13.20 mn tonne. Operating profit grew by 23.4% to Rs 1422 cr and margin expanded by 362 bps to 22.82%.

Wipro's IT services revenue matched estimates but margin and Q2 guidance disappointed. Dollar revenue rose 2.6% q-o-q at USD 1931 mn. In rupee terms revenue rose 2.4% to Rs 13109 cr and profit fell 8.3% to Rs 2052 cr. Operating profit slipped 5.5% and margin contracted by 109 bps. The company guided for revenue of USD 1931-1950 mn for Q2, implying a growth of just 0.01-1% over Q1.

In line with its Budget announcement, the government yesterday announced infusion of Rs 22915 cr into 13 public sector banks to help them cope with their non-performing loans and shore up their capital levels.

OUTLOOK

Today morning Nikkei is down about 0.7% but other Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally higher start for our market.

In yesterday's report we had reiterated the view that 8475 continues to be immediate support. The benchmark, after touching a low of 8477, rebounded to close at 8529, holding on to this support.

8475 continues to be immediate support on the hourly chart, a breach of which will generate a sell on the hourly chart and next support to eye in that case would be 8400, which is the 61.8% retracement level of the last 8284-8595 upmove.

On the way up, 8595, the top made last week, continues to be immediate hurdle a decisive crossover of which will open up the space for further upmove till about 8845, the top made in April lat year.

Traders are advised to wait for the breach of 8475-8595 range for taking a fresh view on Nifty.

NIFTY EASES AFTER NEGATIVE DIVERGENCE AS EXPECTED; 8475 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY EASES AFTER NEGATIVE DIVERGENCE AS EXPECTED; 8475 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices gained 0.1%-0.5% yesterday with the Dow and S & P closing at fresh record highs.

Following Citigroup and JPMorgan Chase last week, Bank of America was the third big US financial institution to top second-quarter profit forecasts, reporting earnings per share of 36 cents versus an expected 33 cents yesterday. IBM beat expectations with earnings per share of $2.95 versus estimates of $2.89. Netflix reported better-than-expected earnings but subscriber numbers missed the company's own guidance

WTI crude fell 71 cents to $45.24/bbl and Brent settled down 1.4% at $46.96.

On the data front, U.S. homebuilder sentiment fell 1 point in July.

European markets ended mixed with modest changes. British semiconductor giant ARM soared 41% after Softbank announced that it would pay £17 per share for ARM Holdings, a 43% premium on Friday's closing price, in an all-cash deal.

The British pound rose half a percent to $1.33 after Bank of England policy member Martin Weale said he was unsure about the need for an interest rate cut in August.

AT HOME

After gaining about half a percent in the first half, benchmark indices tumbled just under a percent from the top of the day in last half to end lower by about a third of a percent. Sensex lost 90 points to settle at 27747 while Nifty finished at 8509, down 33 points. Except a 0.4% and 0.3% rise in BSE Auto and IT indices respectively, all the sectoral indices ended in red with Telecom index leading the tally, down 3.2%, followed by 1.6% cut in Oil & Gas index.

FIIs net bought stocks and index futures worth Rs 599 cr and 807 cr respectively but net sold stock futures worth Rs 393 cr. DIIs were net sellers to the tune of Rs 439 cr.

Rupee depreciated 14 paise to end at 67.20/$.

HUL reported in-line with estimated profit growth but disappointed on top line and volume front. Net profit rose 9.8% to Rs 1174 cr and income rose 3% to Rs 8128 cr. Volume growth stood at 4%.

OUTLOOK

Today morning, except a modestly higher Nikkei, other Asian markets are trading with cuts of upto 0.7% and SGX Nifty is suggesting about 15 points higher start for our market.

In our weekly report we had mentioned that Nifty has formed a negative divergence on hourly chart after a steep run-up and a consolidation/correction in the short term can't be ruled out.

Yesterday, the benchmark, after touching a high of 8587 in the first half, slipped later to end at 8509, vindicating this view.

8475 continues to be immediate support on the hourly chart, a breach of which will generate a sell on the hourly chart and next support to eye in that case would be 8400, which is the 61.8% retracement level of the last 8284-8595 upmove.

8595, the top made last week, should be seen as the immediate hurdle now, a crossover of which would be required for fresh upmove.

Wipro and Ultratech Cement will report their quarterly earnings today.

8655 CONTINUES TO BE MAJOR TARGET; 8475 IMMEDIATE SUPPORT

8655 CONTINUES TO BE MAJOR TARGET; 8475 IMMEDIATE SUPPORT

WORLD MARKETS                             

Dow ended marginally higher while S & P 500 and Nasdaq lost 0.1% each on Friday, pausing after a massive rally over past couple of days.

US Retail sales beat expectations, rising 0.6% in June versus consensus of a 0.1% increase. Consumer prices increased 0.2% last month, marking the fourth straight month of uptick. Preliminary reading of University of Michigan's consumer sentiment index came in at 89.5, lower than the expected 93 mark.

Wells Fargo reported results in-line with consensus, and Citigroup reported better-than-expected earnings.

The Turkish lira plummeted against the dollar and the euro after an apparent attempted coup against the Turkish government.

WTI oil rose 27 cents or 0.6% to $45.95 a barrel. Gold fell $5 to $1327 per ounce.

European markets, except a 0.2% higher FTSE, ended with cuts of upto 0.3% following a terror attack in France that killed at least 84 people.

Earlier data from China showed that economy expanded faster-than-expected in the second quarter with gross domestic product growing 6.7%, helping to allay fears about trouble in the world's second-largest economy.

For the week, Dow soared 2% while S & P 500 and Nasdaq gained 1.5% each, extending the winning streak to third straight week and closing at record high. In Europe, FTSE rose 1.2% while DAX and CAC climbed more than 4%. In Asia, Nikkei jumped 9.2%, Hang seng added 5.3% and Shanghai rose 2.2%.

AT HOME

After scaling fresh 11-month high in the initial trade, benchmark indices, weighed down by big cut in Infosys stock on the back of disappointing earnings, slipped to end lower by about a third of a percent on Friday. Sensex lost 106 points to settle at 27836 while Nifty finished at 8541, down 24 points. BSE mid-cap index gained 0.1% while the small-cap index fell 0.7%. BSE IT index plunged 5.4%, becoming top loser among the sectoral indices followed by 3.9% lower Teck index. Telecom index climbed 2.3% to become top gainer, followed by 1% higher Auto index.

FIIs net bought stocks and index futures worth Rs 1461 cr and 723 cr respectively but net sold stock futures worth Rs 774 cr. DIIs were net sellers to the tune of Rs 1034 cr.

Rupee depreciated 15 paise to end at 67.06/$.

Infosys nosedived after it June quarter results and full year guidance disappointed. Net profit fell 4.5% q-o-q to Rs 3436 cr and revenue rose 1.4% to Rs 16782 cr. Revenue in dollar terms grew by 2.2% to USD 2501 mn and constant currency dollar revenue growth stood at 1.7%. The company lowered its FY17 constant currency revenue growth guidance to 10.5-12.5% from 11.5-13.5% earlier.

Reliance Industries, as against the expectation of an 11% sequential drop, reported a 4.5% growth at Rs 7548 cr as GRM's jumped to a record $11.5/bbl v/s previous quarters $10.8 and expected figure of $9.8. However out of this $2 were on account of inventory gain, stripped of which GRM were roughly in-line with estimates.

June trade data showed that exports rose 1.3% to USD 22.57 bn, showing a positive growth after 18 consecutive months of contraction. Trade deficit however widened to the highest level of 2016 at USD 8.11 bn from 6.27 bn, as imports rose to 30.68 bn.

Oil marketing companies cut petrol and diesel prices by Rs 2.25 and 42 paise per liter respectively.

For the week, Sensex and Nifty gained 2.6% each.

OUTLOOK

Today morning, except a modestly lower Shanghai, other Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting about 25 points higher start for our market.

Nifty, on Friday, after touching a high of 8595 in the initial trade, eased to close at 8541 but is set to open higher today.

As we have been mentioning, 8655, the top made in July 2015, which is also the 52-week high, continues to be major upside target.

Immediate support on hourly chart has moved up to 8475, which should serve as the revised stop loss for trading longs.

HUL will report its quarterly earnings today.

Monsoon session of the Parliament starts today. There are 11 bills pending in Lok Sabha and 45 bills pending in Rajya Sabah. Most important among them would the GST.

NIFTY ON TRACK TO ACHIEVE 8655 TARGET; TRAIL STOP LOSS TO 8475

NIFTY ON TRACK TO ACHIEVE 8655 TARGET; TRAIL STOP LOSS TO 8475

WORLD MARKETS                             

US indices gained 0.5%-0.7% yesterday with the Dow and S & P 500 closing at an all-time high for the third and fourth consecutive day respectively.

In the key corporate earnings JPMorgan Chase beat estimates and BlackRock was in line with expectations.

Weekly jobless claims showed no change week over week. June reading of the producer price index showed an increase of 0.5%, above the expected 0.3% rise.

Oil prices bounced back with U.S. crude settling 2.1% higher at $45.68 a barrel. Gold fell $11 to $1332 per ounce.

British pound rose to a two-week high of $1.3480, following the Bank of England's (BOE) decision to leave its interest rates on hold, despite market expectations for a cut. There were, however, strong hints of easing in August.

European markets, except a 0.2% lower FTSE, gained 0.9%-1.4%.

AT HOME

After trading in a narrow range in the morning session, benchmark indices spiked up in noon trade to end half a percent higher and scale fresh 11-month high. Sensex added 127 points to settle at 27942 while Nifty finished at 8565, up 45 points. BSE mid-cap and small-cap indices rose 0.5% and 0.7% respectively. BSE Consumer Durable index and Bankex climbed 2.2% and 1.5% respectively, becoming top gainers among the sectoral indices while Healthcare index was the top loser, down 0.3%, followed by 0.2% cut in IT and Realty indices.

FIIs net bought stocks and index futures worth Rs 870 cr and 461 cr respectively but sold stock futures worth Rs 465 cr. DIIs were net sellers to the tune of Rs 874 cr.

Rupee appreciated 14 paise to end at 66.91%.

India's wholesale price index (WPI) rose 1.62% y-o-y in the month of June, compared to 0.8% in May, and ahead of expectations of 1.15%.

TCS reported better-than-expected profit and operational performance in April-June quarter while revenue was in-line. Dollar revenue grew 3.7% q-o-q to USD 4362 mn and constant currency growth was 3.1%. Rupee revenue increased 3% to Rs 29305 cr. Net profit fell 0.4% to Rs 6318 cr. EBIT fell 0.9% to Rs 7347 cr and margin contracted by 95 bps to 25.1%. Profit and margin were expected to fall 4.7% and 135 bps respectively.

OUTLOOK

China's June quarter GDP growth has come in at 6.7% same as that of previous quarter but a tad higher than expected 6.6% mark. June industrial output growth stands at 6.2%, up from May's 6% and expected 5.9% figure. July retail sales are up 10.6%, beating previous reading and expected figure of 10%.

Asian markets are trading with gains of upto a percent with Nikkei on the top and SGX Nifty is suggesting about 30 points higher start for our market.

Nifty gained 45 points yesterday to end at 8565 and a positive start today will take the benchmark closer to 8600 mark and also to our indicated target of 8655, which we have been working with ever since 8243 hurdle was taken out on weekly basis on 1st July.

Immediate support on the hourly chart has moved up to 8475, which should serve as the new stop loss for trading longs.

Reliance Industries and Infosys will report their quarterly earnings today.

Infosys is expected to post dollar revenue growth of 4.1% q-o-q at USD 2547 mn. Margins are expected to fall 165 bps to 23.85% 165 bps on partial wage hike which might lead to 4.2% dip in net profit at Rs 3447 cr. FY17 constant currency dollar revenue growth guidance of 11.5%-13.5% is likely to be maintained.

In case of RIL, profit is expected to fall 11.2% q-o-q to Rs 6500 cr as GRMs are expected to come down to $9.8/bbl from $10.8/bbl.

NIFTY CONSOLIDATES HEADY GAINS; 8400 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY CONSOLIDATES HEADY GAINS; 8400 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

Dow gained 0.1%, S & P 500 ended flat while Nasdaq lost a third of a percent yesterday.

WTI crude fell 4.4% or $2.05 to a two-month low of $44.75 a barrel after data showed US crude stocks fall by 2.54 million last week and a build of 1.2 million gasoline barrels. Brent fell $2.21 or 4.6% to $46.26 a barrel.

U.S. import prices for June rose 0.2%, missing estimates, while export prices gained 0.8%. The Federal Reserve released the latest edition of its Beige Book, which said economic activity in most regions increased at a modest pace.

Dollar index fell about 0.2%. Gold rose $8 to $1344 an ounce.

European markets, except a marginally higher France, ended with cuts of 0.2%-1.2%.

AT HOME

It was time to consolidate hefty gains made over last two days as benchmark indices ended flat after a rangebound but choppy session. Sensex added 7 points to settle at 27815 while Nifty lost 2 points to finish at 8520. BSE mid-cap and small-cap indices however fell 0.6% and 0.8% respectively. BSE Metal and IT indices were the top gainers among the sectoral indices, rising 1.8% and 1% respectively while Realty index plunged 2.1%, becoming top loser, followed by 0.9% cut in Power index.

FIIs net bought stocks, index futures and stock futures worth Rs 291 cr, 673 cr and 154 cr respectively. DIIs were net sellers to the tune of Rs 655 cr.

Rupee appreciated 13 paise to end at 67.05/$.

OUTLOOK

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

Nifty touched a high of 8550 before closing at 8520, moving one step forward towards the 8655 target we have been working with ever since 8243, the 61.8% retracement level of the entire 9119-6826 fall was taken out on weekly basis.

8655 continues to be upside target to eye and hold on to trading longs with a trailing stop loss continues to be the advise. Immediate support on the hourly chart continues to be around 8400, which should serve as that stop loss.

Tech major TCS will report its quarterly earnings today. Dollar revenue is seen rising 3.8% q-o-q to USD 4367 mn. In rupee terms while revenue is expected to increase 3% to Rs 29300 cr, net profit is likely to fall 4.7% to Rs 6038 cr. EBIT is likely to fall 2.4% to Rs 7236 cr and margin may contract 135 bps to 24.7%.

June WPI will come out today and is expected at 1.15% as against 0.79% in May.

Bank of England, in its policy meeting today, is expected to cut interest rate by 25 bps.