SEVENTH CONSECUTIVE DAY OF CONSOLIDATION WITHIN 9370-9270 RANGE

SEVENTH CONSECUTIVE DAY OF CONSOLIDATION WITHIN 9370-9270 RANGE

WORLD MARKETS                             

US indices ended flat to marginally higher.

Cleveland Fed President Loretta Mester, in a speech, said "We have met the maximum employment part of our mandate and inflation is nearing our 2% goal." St. Louis Federal Reserve President James Bullard however struck a more dovish note by saying that continued strong demand for safe assets along with sluggish growth in the U.S. workforce will hold down U.S. interest rates for the foreseeable future.

Dollar index gained 0.6% to 99.16.

U.S. crude rose 21 cents to settle at $46.43 a barrel while Brent crude added 24 cents to settle at $49.34.

Earlier data showed China's exports grew 8% y-o-y in April, slowing from a 16.4% rise in March. Imports rose 11.9%, down from 19.8% growth in March.

European market, except a marginally higher FTSE, fell 0.2%-0.9%. Basic resources fell after weak iron ore imports data from China. The euro briefly climbed above $1.10 against the dollar for the first time in six months after Le Pen was defeated, before trading about half a percent lower at $1.093.

AT HOME

Benchmark indices ended with gains in vicinity of a fourth of a percent while broader market outperformed. Sensex added 67 points to settle at 29926 while Nifty finished at 9314, up 29 points. BSE mid-cap and small-cap indices climbed 0.5% and 0.7% respectively. BSE Realty index soared 4.5%, becoming top gainer among the sectoral indices, followed by 2% rise in Telecom index. FMCG and Capital Goods indices were the top losers, down 0.6% and 0.3% respectively.

FIIs net sold stocks and index futures worth Rs 542 cr and 238 cr respectively but net bought stock future worth Rs 682 cr. DIIs were net buyers to the tune of Rs 663 cr.

Rupee appreciated 6 paise to end at 64.4775/$.

SBI announced a 25 bps cut for home loans, bringing the rate down to 8.35% per annum for sub Rs 30 lakh loan. 

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 10 points higher start for our market.

Yesterday was the seventh consecutive day of consolidation. During these seven days, Nifty has traded in a 100 point range of 9370-9270. Obviously, a crossover of this range, on either side, is required for taking a fresh directional view.

Below 9270, 34-DMA, placed around 9200, would be the next support to eye. Above 9370, 9470 would be the next upside target.

Meanwhile existing longs can be held on to with the stop-loss of 9270.

Bharti Airtel will report its quarterly earnings today.