9700-9725 CONTINUES TO BE UPSIDE TARGET; TRAIL STOP-LOSS TO 9525

9700-9725 CONTINUES TO BE UPSIDE TARGET; TRAIL STOP-LOSS TO 9525

WORLD MARKETS                             

US indices fell 0.1%-0.2%, with the S & P 500 and Nasdaq losing seven-day winning streak. 

Personal income rose 0.4% in April, in line with expectations, and consumer spending too increased by 0.4%. The personal consumption expenditures price index, the Federal Reserve's preferred measure of inflation, rose 0.2%. U.S. home prices rose 5.8% in March, according to the S&P/Case-Shiller U.S. National Home Price Index. Consumer confidence reading for May came in at 117.9, slightly below a consensus estimate of 119.

WTI crude fell 0.3% to $49.66 and Brent lost 0.9% to $51.84 a barrel.

Dollar index fell about 0.2% to 97.40. Pound fell on new poll results that showed U.K. Prime Minister Theresa May's Conservative Party could potentially lose its majority in parliament.

European markets, except a 0.2% higher Italy, fell 0.2%-0.5%. Banking stocks were under pressure following remarks by ECB President Mario Draghi and a Deutsche Bank research note that said that European banks no longer had support from a valuation perspective, and growth in the euro area is set to fade.

AT HOME

Benchmark indices gained about a fifth of a percent to make a fresh record closing high. Sensex added 50 points to settle at 31159 while Nifty finished at 9625, up 20 points. BSE mid-cap and small-cap indices gained 0.8% and 0.5% respectively. BSE Healthcare and Realty indices climbed 2.3% and 1.2% respectively, becoming top gainers among the sectoral indices while Capital Goods, FMCG and Telecom indices lost 1% each to become top losers.

FIIs net sold stocks worth Rs 217 cr but net bought index futures and stock futures worth Rs 36 cr and 829 cr respectively. DIIs were net buyers to the tune of Rs 367 cr.

Rupee depreciated 17 paise to end at 64.66/$.

Hindalco posted 26% rise in fourth-quarter net profit at Rs 503 cr. Revenue rose 27% to Rs 11747 cr. EBIDTA was up 14.4% at Rs 1347 cr but margin contracted 137 bps to 12.2%.

M & M reported 26.3% growth in net profit at Rs 874 cr. Revenue rose 4.3% to Rs 10612 cr. Operating profit fell 4.4% to Rs 1237 cr and margin contracted by 110 bps to 11.6%.

OUTLOOK

Today morning Asian markets, except a marginally lower Nikkei, are trading with gains of upto half a percent and SGX Nifty is suggesting a marginally higher start for our market.

In yesterday's report we had reiterated the upside target of 9700-9725 and had asked holding on to long positions with the stop-loss of 9475.

Nifty gained 20 points to make a fresh record closing high of 9625, marching towards the target mentioned above.

9700-9725 continues to be upside target area. Immediate support on the hourly chart has now moved up to 9525, which should serve as the fresh stop-loss for trading longs.

India's Q4 GDP figure will be out today and is expected to show a growth of 7.1% as against the reading of 7% in Q3.