NIFTY NEARLY ACHIEVES 9530 TARGET; TRAIL STOP-LOSS TO 9425

NIFTY NEARLY ACHIEVES 9530 TARGET; TRAIL STOP-LOSS TO 9425

WORLD MARKETS                             

Dow and S & P 500 ended marginally in the red while Nasdaq gained 0.3% yesterday, shrugging off news coming out of Washington.

After firing FBI Director James Comey last week, Trump was again in news as he defended his sharing of reportedly highly classified information with Russian officials via Tweeter. His tweets came after his national security adviser told the media that the incident reported by the Washington Post did not take place.

Additionally media reports suggested that Trump allegedly asked then-FBI Director James Comey, who Trump later fired, to stop investigating now-fired national security adviser Michael Flynn.

Housing starts totaled 1.172 million in April, well below the expected 1.26 million. Industrial production rose 1%, more than the expected increase of 0.4%.

Dollar index fell about 0.6% to 98.18, marking a 6-month low.

European markets ended mixed with FTSE, Italy and Spain in the green while DAX and CAC in the red. U.K. inflation rose to 2.7% in April, hitting its highest level since September 2013. Euro zone GDP was confirmed at 0.5% for the first three months of the year. The German ZEW survey showed economic sentiment had increased to 20.6 in May from 19.5 in April.

AT HOME

Sensex and Nifty soared 0.9% and 0.7% respectively to close at fresh record high. Sensex added 260 points to settle at 30583 while Nifty finished at 9512, up 67 points. BSE mid-cap and small-cap indices gained 0.3% and 0.4% respectively. Except a 0.6% lower Metal index, all the BSE sectoral indices closed higher with Telecom index leading the tally, up 2%, followed by 1.1% higher Teck, Auto and IT indices.

Rupee depreciated 3 paise to end at 64.08/$.

FIIs net bought stocks and stock futures worth Rs 858 cr and 144 cr respectively but net sold index futures worth Rs

PNB turned black in the fourth quarter, with profit at Rs 262 cr against loss of Rs 5367 cr y-o-y. NII rose 33% to Rs 3684 cr. Asset quality improved with gross NPA ratio at 12.53%, down from 13.7% q-o-q and net NPA ratio at 7.81%, down from 9.09% q-o-q. On absolute basis, gross NPA dropped 0.5 percent quarter-on-quarter to Rs 55,370.5 crore and net NPA slipped 6.5 percent to Rs 32,702 crore in the quarter gone by, but slippages rose 28% to Rs 6896 cr.

Tata Steel reported stellar set ouf number on standalone basis. Consolidated net loss for Q4 narrowed to Rs 1168 cr against a loss of Rs 3042 cr during the same period lat year. Revenue rose 30% to Rs 35305 cr. Standalone net profit more than doubled to Rs 1415 cr while revenue rose 46% to Rs 17113 cr. EBIDTA climbed 98% to Rs 4361 cr and margins came in at 27.9% against 20.8%.

OUTLOOK

Today morning, except a marginally higher Hang Seng, other Asian markets are trading with cuts of 0.2%-0.5% and SGX Nifty is suggesting a flattish start for our market.

Nifty yesterday touched a high of 9517, coming very close to the 9530 target we had give after the 9450 hurdle was taken out.

"Stay long with a trailing stop loss" continues to be the advise. Immediate support on the hourly chart has now moved up to 9425, which should serve as the fresh stop-loss for trading longs.

HUL will report its quarterly earnings today.