NIFTY ACHIEVES 9530 TARGET; 8430 IS THE IMMEDIATE SUPPORT

NIFTY ACHIEVES 9530 TARGET; 8430 IS THE IMMEDIATE SUPPORT

WORLD MARKETS                             

Dow and S & P 500 plunged 1.8% each while Nasdaq nosedived 2.6%, as U.S. political turmoil accelerated. For the Dow and S & P 500, this was the worst fall since September while Nasdaq had steepest fall since June 24.

Former FBI Director Robert Mueller was appointed by the Justice Department as a special counsel to take over the probe into Russia's interference in the 2016 election, including its role in the hacking of Hillary Clinton's emails.

That followed a report from The New York Times on Tuesday that former FBI Director James Comey put together a memo outlining a conversation in which President Donald Trump allegedly asked him to halt an investigation into Michael Flynn, the former national security adviser.

These controversies have raised further doubts as to Trump's ability to implement an aggressive stimulus program that includes tax cuts and big government spending.

US 10-year yield fell to about 2.21%. Dollar index hovered near its lowest level since November.

European markets fell between 0.2%-1.8%.

AT HOME

Benchmark indices ended with modest gains, extending the winning streak to third straight day. Sensex settled at 30659, up 76 points while Nifty added 13 points to finish at 9526. BSE mid-cap and small-cap indices however fell 0.02% and 0.2% respectively. BSE Metal index climbed 2.4%, becoming top gainer among sectoral indices, followed by 0.9% higher Telecom index. Consumer Durable and Oil & Gas indices were the top losers, down 0.8% and 0.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 731 cr, 8 cr and 21 cr respectively. DIIs were net buyers to the tune of Rs 615 cr.

Rupee depreciated 7 paise to end at 64.15/$.

The Union Cabinet yesterday approved a new coal linkage policy that seeks to lower power tariffs by allocating coal blocks through a reverse auction.

HUL reported better-than-expected results. Net profit rose 6% to Rs 1183 cr. Revenue rose 6.7% to Rs 8886 cr. EBIDTA was up 12.2% at Rs 1651 cr and margins improved 100 bps to 20.1%. Sales volume was up 4%.

OUTLOOK

Today morning, Nikkei is down 1.6%, other Asian markets are and SGX Nifty is suggesting about 70 points lower start for our market.

Nifty yesterday touched a high of 9533, achieving the 9530 target we were working with after 9450 hurdle was taken out. A gap down opening today would take it close to 9450 mark.

Immediate support on the hourly chart is placed around 9430, a breach of which will generate a sell on the hourly chart and 20-DMA, placed around 9330, would be the next support to eye in that case.

Bajaj Auto and BoB will report their quarterly earnings today.