NIFTY HOLDS 34-DMA SUPPORT; 9218 IS THE IMMEDIATE HURDLE

NIFTY HOLDS 34-DMA SUPPORT; 9218 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

Dow and S & P 500 fell 0.6% and 0.2% respectively while Nasdaq managed to end 0.2% higher.

IBM fell 5% and was the biggest drag on the index. The company posted mixed quarterly results as earnings beat but sales fell for the 20th straight quarter on a year-over-year basis.

Energy was the biggest sectoral loser as US oil nosedived 3.8% to$50.44 per barrel after a build in U.S. gasoline inventories and an increase in U.S. crude production. On the flip side, financials traded higher after Morgan Stanley posted a strong first-quarter.

The Federal Reserve's Beige Book showed economic activity increased across all 12 districts.

European markets, except half a percent lower FTSE, gained 0.1%-2% with Italy on the top. Sterling surged to a more than six-month high on expectations that early election in UK could lead to a more market-friendly exit from the EU. Eurozone March inflation stood at 1.5%, down from 2% in Feb.

AT HOME

Benchmark indices ended little changed after trading in a narrow range through the day. Sensex settled at 29337, up 17 points while Nifty lost 2 points to finish at 9103. BSE mid-cap and small-cap indices however gained 0.7% and 0.8% respectively. BSE Utilities and Realty indices climbed 2.1% and 1.5% respectively, becoming top gainers among the sectoral indices while Bankex and IT indices were the top losers, down 0.5% and 0.3% respectively.

FIIs net sold stocks and index futures worth Rs 673 cr and 1027 cr respectively but net bought stock futures worth Rs 269 cr. DIIs were net buyers to the tune of Rs 526 cr.

Rupee appreciated 4 paise to end at 64.6350/$.

IndusInd Bank's fourth quarter profit missed estimates due to sharp jump in provisions despite stable asset quality while net interest income was ahead of expectations. Profit grew 21.2% y-o-y to Rs 752 cr. NII soared 31.5% to Rs 1667 cr with loan growth at 28%. Gross NPAs as a percentage of gross advances declined 1 bps q-o-q to 0.93% and net NPA was unchanged at 0.39%.

Yes Bank reported 30% rise in March quarter net profit at Rs 914 cr. NII rose 32% to Rs 1640 cr. Net interest margin expanded to 3.6% from 3.5% q-o-q. Gross NPA ratio worsened to 1.52% from 0.85% and Net NPA ratio rose to 0.81% from 0.29%. Gross slippages stood at Rs 1905 cr as against cumulative figure of Rs 728 for previous three quarters.

OUTLOOK

Japan reported that March exports rose 12% on year, against an expected 6.7% increase. This is the fourth consecutive month of gains for Japanese exports.

Today morning, except a 0.2% lower Shanghai, other Asian markets are trading with SGX Nifty is suggesting a marginally lower start for our market.

Readers would recall that after Nifty broke the immediate support of 9160, we had been working with the downside target of 34-DMA, which was placed around 9080 yesterday.

The benchmark touched a low of 9075 before closing at 9103, achieving this target.

9080 continues to be immediate support, below which 9020, where double bottom made in late March is placed, would be the next downside target.

9218, the top made on Tuesday, is the immediate hurdle to eye.