STAY LONG WITH THE STOP-LOSS OF 9330; 9530 ABOVE 9450

STAY LONG WITH THE STOP-LOSS OF 9330; 9530 ABOVE 9450

WORLD MARKETS                             

Dow and S & P 500 fell 0.1% and 0.2% respectively while Nasdaq gained 0.1% on Friday after economic data proved to be a mixed bag, and on the back of the drop in retails stocks.

J.C. Penney plunged 14% after earnings topped expectations but same-stores sales fell more than expected.

Retail sales increased 0.4% in April from March, less than expected. Consumer prices rose 0.2% in April, in line with expectations. In the 12 months through April, the CPI increased 2.2%, down from March's 2.4% read.

Treasury yields fell on the back of the data. The benchmark 10-year note yield slipped to trade near 2.32%, while the two-year note yield hovered near 1.29%. Dollar index fell half a percent to 99.20.

Oil prices settled slightly higher.

European market gained 0.3%-0.7%. Provisional data from Germany showed the economy grew by 0.6% in the first-quarter.

For the week, Dow and S & P 500 fell 0.4% and 0.2% respectively, breaking 3-week winning streak. Nasdaq gained 0.2%. In Europe, while FTSE soared 1.2%, DAX ended flat while CAC lost 0.9%.

G7 finance ministers and central bankers highlighted the risks the Trump administration's trade policies could pose to global growth during their meeting in Italy. This follows an earlier meeting in March this year, when G20 leaders failed to endorse free trade in their joint communique.

Concerns over North Korea's nuclear program grew after the hermit state launched a new missile over the weekend.

AT HOME

Benchmark indices ended lower by a fifth of a percent on the last day of the week, breaking four-day winning streak. Sensex lost 63 points to settle at 30188 while Nifty finished at 9401, down 21 points. BSE mid-cap and small-cap indices fell 0.7% and 0.8% respectively. BSE Consumer Durable index was the top loser among sectoral indices, down 1%, followed by 0.9% cut in Finance index and Bankex. BSE IT and Realty indices were the top gainers, up 1.2% and 0.8% respectively.

FIIs net bought stocks worth Rs 842 cr but net sold index futures and stock futures worth Rs 916 cr and 191 cr respectively. DIIs were net sellers to the tune of Rs 711 cr.

Rupee appreciated 8 paise to end at 64.30/$.

Dr Reddy reported 175% rise in March quarter net profit at Rs 337.6 cr due to low base. Revenue fell 4.8% to Rs 3612 cr. Consolidated operating profit rose 31.3% to Rs 630 cr and margin expanded by 490 bps to 17.7%. All the parameters fell short of expectation.

European markets, except a marginally lower CAC, were trading with gains of upto 0.5%.

The government on Friday revised the base year for wholesale price index (WPI)-based inflation  and the Index of Industrial Production (IIP) to 2011-12 from 2004-05. As per the new series, April WPI inflation eased to four-month low of 3.85% from 5.29% in March. March IIP growth improved to 2.7% from 1.9% in February. The Consumer Price Index-based inflation in April stood at 2.99%, down from 3.81% in March and a record low. Core CPI fell to 4.5% from 4.9%.

OUTLOOK

Today morning, except a modestly lower Nikkei, other Asian markets are trading with gains of 0.3%-0.5% and SGX Nifty is suggesting about 35 points higher start for our market.

Readers would recall that we had given a target of 9470 after immediate target of 9350 was achieved. Nifty, after touching a high of 9451 on Thursday, slipped to end at 9401 on Friday, but is set to open higher today.

9450, the top made last week, is the immediate hurdle above which 9530 would be the next target to eye.

9330 continues to be immediate support, with the stop-loss of which trading longs should be held on to.