NIFTY TAKES OUT 9928 HURDLE; TRAIL STOP-LOSS TO 9890 FOR TARGET OF 10070

NIFTY TAKES OUT 9928 HURDLE; TRAIL STOP-LOSS TO 9890 FOR TARGET OF 10070

WORLD MARKETS                             

Dow and S & P 500 fell 0.3% and 0.1% respectively while Nasdaq gained 0.4% yesterday.

The IHS Markit Flash US Composite PMI hit its highest level in six months. Existing home sales fell 1.8% to a seasonally adjusted annual rate of 5.52 million units last month, more than expected.

WTI oil rose 1.3% to $46.34 and Brent added 1.1% to $48.60 a barrel after Saudi Arabia said it would reduce its exports in August and on reports that Nigeria, which was originally exempt from the OPEC-led production cut, would be capping its output.

In Europe, FTSE plunged 1%, DAX fell 0.2% while CAC and Italy gained 0.2% and 0.6% respectively.  Auto sector was under pressure after reports that the European Commission is investigating collusion between German carmakers. Flash IHS Markit's monthly purchasing manager's index for the euro zone came in at 55.8 in July, down from 56.3 in June.

AT HOME

Sensex and Nifty climbed 0.7% and 0.5% respectively to scale fresh record high. Sensex settled at 32246, up 217 points while Nifty added 51 points to finish at 9966. BSE mid-cap and small-cap indices however underperformed, gaining just 0.3% each. BSE Telecom index surged 1.4%, becoming top gainers among the sectoral indices, followed by 1% higher IT and Teck indices. Metal and Healthcare indices were the top losers, down 0.6% and 0.4% respectively.

FIIs net sold stocks and index futures worth Rs 367 cr and 519 cr respectively but net bought stock futures worth Rs 1407 cr. DIIs were net buyers to the tune of Rs 669 cr.

Rupee depreciated 2 paise to end at 64.34/$.

Indiabulls Housing reported a 25% jump in the June quarter net profit at Rs 788 cr, helped by higher loan growth (at 33%), reduction in the cost of funds and the cost-to-income ratio. Gross non-performing loans improved to 0.80% from 0.84% last year, while net Non-Performing Assets, too, stood down at 0.31% from 0.36%.

Bharti Infratel reported 12% y-o-y dip in net profit at Rs 664 cr. Revenue rose 10% to Rs 3524 cr. While revenue growth was in-line, margin and net profit were better-than-expected.

Ambuja Cement reported 13.3% fall in net profit at Rs 392 cr. Operating income rose . Volume growth was in-line. Realisations were up 7% y-o-y and 1% q-o-q.

ZEE Entertainment reported a healthy advertisement revenue growth of 6.9%. Operating margins too were better-than-expected.

OUTLOOK

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

Nifty yesterday climbed 51 points to finish at 9966, taking out the 9928 hurdle. Next target, as we have been mentioning, is around 10070. Immediate support on the hourly chart has moved up to 9890, with the stop-loss of which, trading longs should be held on to.

Axis Bank, Bharti Airtel, Hero Motocorp, VEDL and Asian Paints will report their quarterly earnings today.