A MAMMOTH REBOUND FROM THE VICINITY OF 34-DMA; STAY LONG WITH THE STOP-LOSS OF 9410

A MAMMOTH REBOUND FROM THE VICINITY OF 34-DMA; STAY LONG WITH THE STOP-LOSS OF 9410

WORLD MARKETS                             

US indices gained 0.3%-0.7% with S & P 500 and Nasdaq notching a record high on intraday as well as closing basis.

US crude plunged nearly 5% to $48.90 after OPEC agreed to extend production cuts by nine months but did not cut the production further. Brent fell 4.6% to $51.46.

Trump met with EU and NATO leaders in Brussels in the latest leg of his first international tour. He called on NATO members to spend more money on fighting terrorism.

Jobless claims hit 234,000 last week, rising slightly from the previous week, but remained near their lowest levels in more than 40 years.

U.S. Treasuries rose, with the benchmark 10-year yield slipping to 2.253% and the short-term two-year note yield declining to 1.293%.

European markets, except a marginally higher FTSE, fell 0.1%-0.4%.

News after US markets closed suggested that Jared Kushner, the son-in-law and senior adviser of U.S. President Donald Trump, was now under FBI scrutiny in its Russia probe.

AT HOME

Benchmark indices soared a percent and half on the expiry day of the May derivative series, registering the biggest single day gain since 14th March. Sensex climbed 448 points to settle at record high of 30750 while Nifty finished at 9510, up 149 points. BSE mid-cap and small-cap indices added 1.4% and 2% respectively. Except a 1.8% and 0.1% lower Healthcare and Consumer Durable indices respectively, all the BSE sectoral indices ended in green with Capital Goods index and Bankex leading the tally, up 3.5% and 2.8% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 589 cr, 371 cr and 128 cr respectively. DIIs were net sellers to the tune of Rs 236 cr.

Rupee gained 11 paise to end at 64.62/$.

In the May derivative series, Sensex and Nifty gained 2.4% and 1.8% respectively.

Cipla reported net loss of Rs 62 cr in March quarter as against a loss of Rs 93 cr in same quarter last year. Revenue rose 8% to Rs 3582 cr. EBIDTA came in at Rs 506 cr, up from Rs 176 cr and margin stood at 14.1%. 

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points lower start for our market.

For past couple of days we had been saying that Nifty was in a consolidation mode after a steep run-up and that 34-DMA, placed around 9300, is the important support to eye. In yesterday's report we had also mentioned that 9450 was the immediate hurdle above which 9530, the top made last week, would be the next hurdle to eye.

Nifty traded with a negative bias for five consecutive days and touched a low of 9341 on Wednesday, but saw a mammoth rebound yesterday to touch a high of 9523 before closing at 9510. 

9533, the top made last week, is now the immediate hurdle to eye, upon crossover of which 9700 would be the next target.

9410 is the immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

Sun Pharma, ONGC and ITC will report their quarterly earnings today.