NIFTY ON TRACK TO ACHIEVE 9273 TARGET; STAY LONG WITH THE STOP-LOSS OF 9140

NIFTY ON TRACK TO ACHIEVE 9273 TARGET; STAY LONG WITH THE STOP-LOSS OF 9140

WORLD MARKETS                             

US indices climbed 1%-1.2%, cheering the results of the first round in the French presidential election.

Media report suggested that Trump ordered aides to put together a tax plan to cut the corporate tax rate to 15%.

Focus now shits to potential government shutdown. US Government funding will end Friday unless Congress can agree on at least a temporary funding resolution.

Developments on the Korean Peninsula will also be watched as the USS Carl Vinson aircraft carrier-led battle group heads to the Sea of Japan. China called for restraint in dealing with North Korea when Chinese President spoke with Trump over the phone yesterday.

European markets soared 2.1%-4.8% with CAC leading the tally and hitting a nine-year high. Germany's Ifo business sentiment index jumped to 112.9 in April from 112.4 in March. This was the highest reading since July 2011.

AT HOME

After a mildly positive start, benchmark indices kept on moving higher through the session to end with hefty gains of a percent. Sensex soared 291 points to settle at 29656 while Nifty finished at 9218, up 99 points. BSE mid-cap and small-cap indices gained 1% and 0.8% respectively. Except a 0.4% lower Healthcare index, all the BSE sectoral indices closed in green with Realty and Basic Material indices leading the tally, up 3% and 2.1% respectively.

FIIs net sold stocks worth Rs 280 cr but net bought index futures and stock futures worth Rs 403 cr and 1204 cr respectively. DIIs were net buyers to the tune of Rs 984 cr.

Rupee appreciated 18 paise to end at 64.46/$.

Ultratech Cement reported 12% dip in fourth quarter net profit at Rs 688 cr. Income was up 3% at Rs 7499 cr. Grey cement volume rose 0.2% while white cement volume was up 0.5%. Results were ahead of estimates on all counts.

Reliance Industries' quarterly earnings beat expectations as standalone net profit grew 1.6% q-o-q to Rs 8151 cr. Standalone revenue revenue rose 12% to Rs 74598 cr and consolidated revenue was up 10.3% at Rs 92889 cr. Gross refining margin stood at USD 11.50 a barrel, up from 10.8 in December quarter. Operating profit rose 6.4% to Rs 11280 cr. The company also said that Reliance Jio has added 109 million subscribers out of which 72 mn are Jio Prime subscribers.

Indiabulls Housing’s net profit rose 24% y-o-y to Rs 840 cr. NII climbed 21.8% to Rs 1360 cr.

OUTLOOK

Today morning, Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting about 20 points higher start for our market.

At the risk of repeating we have been telling that the 34-DMA is the important immediate support with the stop-loss of which positional longs should be held on to. In yesterday's report we had also said that 9200 is the immediate hurdle on the hourly chart, above which, 9273, the top made in early April, would be the next target.

Nifty, after taking support at the 34-DMA mark last week, crossed the 9200 hurdle yesterday and touched a high of 9225 before closing at 9218.

9273 continues to be immediate target above which 9350 would be the next target to eye.

Immediate support on the hourly chart is placed at 9140, with the stop-loss of which trading longs should be held on to.