9530 ABOVE 9450; TRAIL STOP-LOSS TO 9370

9530 ABOVE 9450; TRAIL STOP-LOSS TO 9370

WORLD MARKETS                             

US indices gained 0.4%-0.5% with S & P 500 and Nasdaq closing at fresh record high on the back of rise in tech and oil prices.

WTI and Brent oil climbed nearly 2% each to $48.85 and $51.82 a barrel respectively after the Russian and Saudi energy ministers said the two countries agreed to extend a production cut until March 2018.

Large cap tech and cybersecurity stocks gained after a "ransomware" virus dubbed WannaCry hit 200,000 computers in more than 100 countries on Friday.

National Association of Home Builders survey showed sentiment among home builders came in at 70 for May, up from 58 in May of last year. The Empire State manufacturing index dropped to negative 1 in May from a print of 5.2 last month.

Dollar index fell to 98.879.

European markets gained 0.3%-0.6% on the back of a regional election win for German Chancellor Angela Merkel's party and extended oil output cuts.

AT HOME

Benchmark indices added half a percent to close at fresh record high. Sensex settled at 30322, up 134 points while Nifty gained 44 points to finish at 9445. BSE mid-cap and small-cap indices soared 1.2% and 0.8% respectively. BSE Metal and Basic Material indices were the top gainers among the sectoral indices, rising 2.4% and 1.6% respectively whereas Telecom and Teck indices were the top losers, down 0.9% and 0.5% respectively.

FIIs net bought stocks and stock futures worth Rs 235 cr and 191 cr respectively but net sold index futures worth Rs 117 cr. DIIs were net sellers to the tune of Rs 66 cr.

Rupee appreciated 26 paise to end at a fresh 21-month high of 64.05/$.

Vedanta's overall earnings beat street expectations. The company posted consolidated net profit of Rs 2988 cr as against loss of Rs 21103 cr (which included an exceptional loss of Rs 12312 cr). Revenue rose 40.5% to Rs 23691 cr. Operating profit more than doubled to Rs 7350 cr and margin expanded by 1060 bps to 32.7%.

India's exports and imports rose 19.8% and 49% respectively in April, leaving a trade deficit of $13.2 bn.

Oil marketing companies cut petrol and diesel prices by Rs 2.16 and Rs 2.10 per litre.

OUTLOOK

Today Nikkei is up above half a percent but other Asian markets are trading with cuts of 0.2%-0.6%. SGX Nifty is suggesting about 10 points higher start for our market.

In yesterday's report we had mentioned that 9451, the top made last week, is the immediate hurdle above which 9530 would be the next target to eye.

Nifty gained 44 points to close at 9445 and is set to open higher today. As mentioned above 9530 would be the next target upon a sustained crossover of 9450.

Immediate support on the hourly chart has moved up to 9370, with the stop-loss of which, trading longs should be held on to.

Tata Steel and PNB will report their quarterly earnings today.