NIFTY RESISTED NEAR 9928 HURDLE; 9792 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY RESISTED NEAR 9928 HURDLE; 9792 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

Nadaq rose 0.1% while S & P 500 and Dow ended marginally in the red yesterday amid rising political uncertainty in the US.

Media reports suggested that special counsel Robert Mueller is examining business dealings of President Donald Trump's businesses and those of his family and associates.

European Central Bank kept interest rates unchanged, as was widely expected. However ECB President Mario Draghi said policymakers would discuss potential changes to its bond-buying program this fall.

Euro surged nearly 1% to hit a high of $1.1655, its highest since August 24, 2015. Dollar index fell 0.6% to 94.24. US 10-year yield hit 2.255%, its lowest level since June 29. Gold rose 0.3% to $1245 an ounce.

European markets, except a 0.8% higher FTSE, ended with cuts of upto 0.3%.

WTI crude fell 0.7% to $46.79 a barrel.

AT HOME

After opening higher by about a fifth of a percent, benchmark indices saw a reversal of these gains through the session to end with cuts of of about a fifth of a percent. Sensex settled at 31904, down 51 points while Nifty lost 26 points to finish at 9873. BSE mid-cap index fell half a percent but the small-cap index managed to gain 0.2%. BSE Metal and IT indices fell 1% and 0.8% respectively, becoming top losers among the sectoral indices while Realty index was the top gainer, up 0.5%, followed by 0.2% higher Capital Goods and Finance indices.

FIIs net bought stocks and stock futures worth Rs 155 cr and 405 cr respectively but net sold index futures worth Rs 540 cr. DIIs' net buying and selling

Rupee depreciated 15 paise to end at 64.43/$.

Kotak Mahindra Bank posted lower-than-expected 23% y-o-y rise in standalone net profit at Rs 913 cr. NII rose 17% to Rs 2245 cr. Net interest margin rose 10 bps to 4.5%. Gross NPA ratio stood at 2.58% as against 2.59% q-o-q while the Net NPA ratio improved to 1.25% from 1.26%.

Bajaj Auto posted 5.6% dip in net profit at Rs 924 cr while revenue fell 3.9% to Rs 5854 cr. Operating profit fell 20.2% to Rs 938 cr and margin declined 330 bps to 17.2%.

Reliance Industries' June quarter results beat street estimates on all counts. Net profit surged 28% y-o-y to Rs 9108 cr. Consolidated revenue rose 27.7% to Rs 90537 cr.  Gross Refining Margins recorded nine-year high of $11.9/bbl. Petrochem EBIT margin hit an all-time high of 15.8%.

Wipro reported better-than-expected June quarter earnings but guidance disappointed. Dollar revenue growth was up 0.9% and in constant currency terms, the growth stood at 0.3%. Operating margin came in at 16.8%. The company guided for a dollar revenue growth of minus 0.5% to 1.5% for July-September quarter. The company announced Rs 1100 cr buyback, which was higher than expected.

Mr. Ram Nath Kovind was elected as the 14th President of India yesterday.

OUTLOOK

Today morning, Asian markets are trading mixed with modest change and SGX Nifty is suggesting a marginally higher start for our market.

In yesterday's report we had reiterated the view that 9928, the top made on Monday, is the immediate hurdle, a crossover of which is required for a fresh upmove.

The benchmark, after touching a high of 9922, slipped to end at 9873, vindicating our view.

9928 continues to be important immediate hurdle, a decisive crossover of which is required for a fresh upmove. 10070 would be the next target if that happens.

9792 continues to be immediate support, with the stop-loss of which existing longs can be held on to.

Reliance Industries will hold its AGM today.