STAY LONG WITH THE STOP-LOSS OF 10000

STAY LONG WITH THE STOP-LOSS OF 10000

WORLD MARKETS                             

Dow and S & P 500 gained 0.2% and 0.1% respectively while Nasdaq ended flat with the Dow closing above the 22000 mark for the first time.

Apple surged nearly 5% after reporting strong quarterly earnings.

Data from ADP showed private U.S. companies added 178,000 jobs last month, just below expectations of 185,000. Job growth for June was revised from 158,000 to 191,000.

Treasury yields traded mixed with the benchmark 10-year yield near 2.266% and the two-year yield around 1.359%.

Dollar touched a two-and-a-half year low of $1.19 against the Euro.

WTI and Brent crude rose nearly a percent to $49.59 and $52.36 a barrel.

European markets lost 0.2%-0.7%.

AT HOME

After a positive start, benchmark indices saw a sustained downward move through the session to end with cuts of three tenth of a percent. Sensex lost 98 points to settle at 32477 while Nifty finished at 10082, down 33 points. BSE mid-cap and small-cap indices fell 0.3% and 0.1% respectively. BSE IT index was the top loser among the sectoral indices, down 0.9%, followed by 0.8% cut in FMCG, Capital Goods and Teck indices.

FIIs net bought stocks worth Rs 474 cr but net sold index futures and stock futures worth Rs 1060 cr and 42 cr respectively. DIIs were net sellers to the tune of Rs 233 cr.

Rupee appreciated 37 paise to end at 63.70/$.

Lupin reported earnings which were mostly below street estimates. Net profit fell 59.4% to Rs 358 cr and revenue dipped 13.4% to Rs 3869 cr. Operating profit declined 41.3% to Rs 768 cr and margins tumbled 961 bps to 19.9%.

PNB posted 12% rise in net profit at Rs 343 cr along with 4% rise in NII at Rs 3855 cr. Asset quality deteriorated with Gross NPA ratio rising to 13.66% from 12.53% q-o-q and net NPA ratio rising to 8.67% from 7.81%. Provisions stood at Rs 2609 cr, a decline from Rs 5753 cr sequentially.

OUTLOOK

Today morning, Asian markets are trading with modest cuts and SGX Nifty is suggesting about 30 points lower start for our market.

In yesterday's report we had said that having crossed 10115 hurdle, next target to eye for Nifty is around 10300 and had advised holding on to long positions with the revised stop-loss of 10000.

The benchmark, after touching a high of 10138 in the initial trade, slipped to end at 10081 and is set to open around 10050 today.

10000 continues to be immediate support, with the stop-loss of which, existing longs should be held on to. 10138, the top made yesterday, is the immediate hurdle, above which 10300 would be the next target to eye.

IOC, Titan and Colgate will report their quarterly earnings today.