NIFTY ON TRACK TO ACHIEVE 10440 TARGET; TRAIL STOP-LOSS TO 10270

NIFTY ON TRACK TO ACHIEVE 10440 TARGET; TRAIL STOP-LOSS TO 10270

WORLD MARKETS                             

Nasdaq ended flat while Dow and S & P 500 fell about a third of a percent following news that planned tax cuts could be phased.

Media reports suggested that corporate tax rate would be lowered by three percentage points each year from the existing 35% beginning in 2018 to reach 20% buy 2022.

Brent crude rose 46 cents to $60.90 and WTI rose 25 cents to $54.15 a barrel.

Main European markets ended mixed with modest changes but Spain soared 2.4%

AT HOME

Benchmark indices gained about a third of a percent to hit fresh record high. Sensex gained 109 points to settle at 33266 while Nifty finished at 10364, up 41 points. BSE mid-cap and small-cap indices soared 1.1% and 1.2% respectively. Except 0.4% and 0.2% lower FMCG and Metal indices respectively, all the BSE sectoral indices ended in green with Consumer Durable and Realty indices leading the tally, up 2.4% and 2.1% respectively.

FIIs net sold stocks worth Rs 186 cr but net bought index futures and stock futures worth Rs 191 cr and 125 cr respectively. DIIs were net buyers to the tune of Rs 140 cr.

Rupee appreciated 20 paise to end at 64.85/$.

Tata Steel reported consolidated net profit of Rs 1018 cr against a loss of Rs 49 cr during the same period last year. Revenue rose 36% to Rs 32464 cr. EBITDA rose 54% to Rs 4,720.5 crore, while the operating margin came in at 14.54% against 11.85%. EBIDTA per tonne for Indian operations stood at  Rs 12500 and for Europe, it was $45 which were lower than estimates.

HDFC reported a standalone net profit growth of 15% at Rs 2101 cr. NII grew by 13.7% to Rs 2612 cr. Net Interest Margin stood at 3.9%, up 5 bps y-o-y but down 10 bps q-o-q.

Lupin posted 31% dip in net profit at Rs 455 cr. Revenue fell 8% to Rs 3952 cr. EBIDTA fell 10% to Rs 1047 cr while margins dipped 56 bps to 27%.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto 0.4% and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that after Nifty had crossed 10252 top made in mid-October, we had given a target of 10380. Nifty yesterday touched a high of 10384 before closing at 10363, achieving this target and vindicating our view.

Recently, when the 10340 top made after the gap up opening following the bank recapitalisation news was taken out, we had given a target of 10440 and that continues to be the next target to eye.

Immediate support on the hourly chart has moved up to 10240, with the stop-loss of which trading longs should be held on to.

The Federal Open Market Committee will begin its own two-day meeting  today and is due to make its interest rates decision on Wednesday.