10138 CONTINUES TO BE IMMEDIATE HURDLE; 20-DMA LANDS SUPPORT AROUND 9950

10138 CONTINUES TO BE IMMEDIATE HURDLE; 20-DMA LANDS SUPPORT AROUND 9950

WORLD MARKETS                             

Dow ended little changed while S & P 500 and Nasdaq lost 0.2% and 0.4% respectively on Friday.

The U.S. economy added 209,000 jobs last month, according to the Labor Department, well above the expected gain of 183,000.

U.S. Treasury yields jumped on the data, with the benchmark 10-year yield climbing to 2.264%, while the short-term two-year yield rose to 1.355%. Dollar index gained 0.8% to 93.49.

European markets gained 0.5%-1.4%.

For the week, Dow and S & P 500 gained 1.2% and 0.2% respectively but Nasdaq fell 0.4%. European markets gained 1.1%-2%. In Asia, Hang Seng surged 2.2%, Shanghai added 0.3% but Nikkei ended marginally in the red.

On Saturday, the United Nations Security Council unanimously imposed new sanctions on North over its intercontinental ballistic missile tests in July. The sanctions could slash Korea's $3 billion annual export revenue by a third.

AT HOME

After a lackluster morning trade, Sensex and Nifty indices spiked up in the noon trade to end higher by 0.3% and 0.5% respectively. Sensex settled at 32325, up 88 points while Nifty climbed 53 points to finish at 10066. BSE mid-cap and small-cap indices added 0.7% and 0.1% respectively. Except 0.9% and 0.4% lower Healthcare and Telecom indices respectively, all the BSE sectoral indices closed in green with Consumer Durable index leading the tally, up 4.2%, followed by 2.6% higher Oil & Gas index.

FIIs net sold stocks and index futures worth Rs 854 cr and 286 cr respectively but net bought stock futures worth Rs 50 cr. DIIs were net buyers to the tune of Rs 1017 cr.

Rupee appreciated 11 paise to end at 63.58/$.

For the week, Sensex ended little changed while Nifty added half a percent.

M & M reported 20% y-o-y dip in net profit at Rs 768 cr. Revenue rose 5.4% to Rs 11094 cr. Operating profit fell 2.9% to Rs 1454 cr and margin contracted by 110 bps to 13.1%.

Finance Minister Arun Jaitley announced the formation of Bharat-22 ETF in order to speed up its divestment drive and meet the target for FY18. The ETF will comprise of Central Public Sector Enterprise (CPSE), public sector banks (PSBs) and will also have some strategic holding in the Specified Undertaking of the Unit trust of India (SUUTI).

GST Council on Saturday rationalised rates of 19 services including textile jobs and government work contracts, cut taxes on certain tractor parts to 18% from 28%, and approved e-way bill rules that will remove checkposts at state borders.

OUTLOOK

Today morning, except a 0.3% lower Shanghai, other Asian markets are trading with gains of 0.2%-0.6% and SGX Nifty is suggesting a marginally higher start for our market.

On Friday, we had said that upon breach of 9998, next downside target to eye would be about 9930, where 20-DMA was placed.

Nifty, after touching a low of 9988 in the morning session, rebounded sharply in the noon trade to end at 10066 and is set to open marginally higher today.

10138, the top made last week, continues to be immediate hurdle above which 10300 would be the next upside target.

20-DMA has now moved up to 9950 and would be the immediate support to eye.

Tata Steel and Britannia will report their quarterly earnings today.