10950 NEXT SUPPORT; PORTFOLIO HEDGING ADVISED AS BUDGET NEARS

10950 NEXT SUPPORT; PORTFOLIO HEDGING ADVISED AS BUDGET NEARS

WORLD MARKETS

US indices tumbled 0.9%-1.4% with Dow and S & P 500 suffering worst single day fall since May and August respectively on persisting fears of higher interest rate.

Dollar index fell about 0.2% to 89.18.

U.S. crude fell 1.6% to $64.50 a barrel and Brent fell 0.6%.

European markets fell 0.9%-1.4%. Basic resources stocks led the losses amid a potential power crisis in China.

AT HOME

Benchmark indices fell seven tenth of a percent with Sensex settling 250 points lower at 36033 while Nifty finished 81 points lower at 11050. BSE mid-cap and small-cap indices fell 0.7% and 1.3% respectively. Except a 1.2% higher Oil & Gas index and flat Energy index, all the BSE sectoral indices ended in red with Consumer Durable and Basic Material indices leading the losses, down 1.7% and 1.2% respectively.

FIIs net sold stocks and index futures worth Rs 106 cr and 1441 cr respectively but net bought stock futuers worth Rs 687 cr. DIIs were net sellers to the tune of Rs 282 cr.

Rupee depreciated 2 paise to end at 63.61/$.

TVS Motor posted 16.3% y-o-y growth in December quarter net profit at Rs 154 cr. Revenue rose 23.5% to Rs 3685 cr and volume growth stood at 15%. Operating profit shot up 31% to Rs 287 cr and margin expanded by 50 bps to 7.8%.

IOC's standalone profit more than doubled to Rs 7883 cr from RS 3696 cr in previous quarter. Operating profit grew by 22.2% to Rs 13269 cr and margin expanded 390 bps to 12%. The company announced 1:1 bonus and dividend of Rs 19 per share.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto 0.3% and SGX Nifty is suggesting about 30 points lower start for our market.

In yesterday's report we had asked trailing the stop-loss to 11040 in long positions. Nifty after touching a low of 11034, closed at 11050 and is set to open lower today. A breach of the low made in the first hour will confirm a sell on the hourly chart and would pave the way for further correction. 10950, where the trendline adjoining recent bottoms on the daily chart is placed, would be the next downside target if that happens.

Considering the heady run-up seen over last two months and the big event of Union Budget scheduled tomorrow, hedging of portfolios by way of selling higher strike Nifty calls would not be a bad idea.

ICICI Bank, L & T, VEDL and JSW Steel will report their quarterly earnings today.

NIFTY ACHIEVES 11150 TARGET; TRAIL STOP-LOSS TO 11040

NIFTY ACHIEVES 11150 TARGET; TRAIL STOP-LOSS TO 11040

WORLD MARKETS

Dow and S & P 500 fell 0.7% each while Nasdaq gave away half a percent on concerns of higher interest rate.

The benchmark 10-year yield broke above 2.7% to reach its highest level since April 2014. The rise in bond rates this year has been driven by concerns over higher inflation. Utilities, telecommunications and real estate were among the worst-performing sectors

Dollar index gained about a third of a percent to settle at 89.35.

Oil fell with Brent down 1.5% at $69.46 per barrel. WTI fell 58 cents, or 0.9%, to $65.56 a barrel.

In Europe, except a marginally higher FTSE, other markets ended with modest cuts.

AT HOME

Benchmark indices gained about six tenth of a percent to notch another record high today. Sensex settled at 36283, up 233 points while Nifty added 61 points to finish at 11130. BSE mid-cap and small-cap indices however tumbled 0.7% and 1.1% respectively. BSE Auto and IT indices climbed 1.6% and 1.2% respectively, becoming top gainers among the sectoral indices while Telecom and Utilities indices were the top losers, down 1.2% and 1% respectively.

FIIs net bought stocks and stock futures worth Rs 292 cr and 1009 cr respectively but net sold index futures worth Rs 217 cr. DIIs were net buyers to the tune of Rs 90 cr.

Rupee depreciated 4 paise to end at 63.59/$.

Annual economic survey, tabled in the Parliament today, pegged India's GDP growth for 2018-19 at 7-7.5% as it shakes off the disruptive effects of demonetisation, and the benefits of the Goods and Services Tax (GST) kick in.

Tech Mahindra reported better-than-expected 13% q-o-q growth in net profit at Rs 943 cr. Revenue rose 2.2% to Rs 7776 cr. Dollar revenue rose 2.5% to USD 1209 mn. EBIDTA rose 14.4% to Rs 1264 cr and margin expanded 180 bps to 16.3%,

HDFC reported 233% y-o-y jump in December quarter net profit at Rs 5670 cr on the back of one-time gain of Rs 3675 cr. Revenue from operations grew b 6.6% to Rs 8667 cr. NII rose 11.2% to Rs 2968 cr. Asset quality remained stable for the quarter as non-performing loans were at 1.15% against 1.14% in previous quarter.

OUTLOOK

Today morning, Shanghai is flat but other Asian markets are trading with cuts of 0.3%-0.7% and SGX Nifty is suggesting a marginally lower start for our market.

After Nifty achieved 11000 target we had given next target of 11150. Nifty yesterday touched a high of 11171 before closing at 11130, achieving the target mentioned above.

Next target on the way up comes to around 10230. Immediate support on the hourly chart has moved up to 11040, with the stop-loss of which, trading longs should be held on to.

IOC, TVS Motors and Godrej Consumer will report their quarterly earnings today.

11150, 11290 ARE UPSIDE TARGETS; TRAIL STOP-LOSS TO 11000

11150, 11290 ARE UPSIDE TARGETS; TRAIL STOP-LOSS TO 11000

WORLD MARKETS

US indices soared 0.8%-1.3% on Friday as corporate earnings topped estimates.

Fourth-quarter GDP numbers showed the U.S. economy expanded by 2.6%, short of the 3% forecast. U.S. durable goods orders rose 2.9% in December as against expectation of an increase of 0.8%.

Main European markets ended with modest gains while Italy and Spain rose 0.4% and 1% respectively.

President Donald Trump addressed world leaders in a speech at the World Economic Forum (WEF) in Davos, Switzerland, on Friday. Trump told the conference that the U.S. wanted "fair" and "reciprocal" trade, criticizing countries that he said "exploit" others in trade deals

AT HOME

After falling about seven tenth of a percent, benchmark indices recouped most of the losses in the late noon trade to end with modest cuts. Sensex settled at 36050, down 111 points while Nifty fell 16 points to finish at 11070. BSE mid-cap and small-cap indices lost 0.7% each. Except 0.8% and 0.4% higher Metal and Capital Goods indices respectively, all the BSE sectoral indices ended in red with Realty and Auto indices leading the losses, down 1.5% and 1.2% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 937 cr, 3945 cr and 1116 cr respectively. DIIs were net sellers to the tune of Rs 966 cr.

Rupee appreciated 15 paise to end at 63.54/$.

For the week, Sensex and Nifty gained 1.5% and 1.6% respectively, extending the winning streak to eight straight weeks.

Dr Reddy's Laboratories reported a 29% y-o-y fall in consolidated profit at Rs 334 crore due to continued decline in North America business, but North America business improved by 12% on sequential basis. Revenue from operations grew by 3% to Rs 3,806 cr. Consolidated EBITDA fell 8.4% to Rs 806 crore and margin contracted 300 basis points to 21%.

Maruti reported strong revenue and operational performance but profit was hit by higher tax and lower other income. Revenue and EBIDTA rose 14% and 22% respectively while profit was up 3% at Rs 1799 cr. Operating margins improved from 14.7% to 15.6%.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.5%-0.7% and SGX Nifty is suggesting about 60 points higher start for our market.

In Friday's report we had reiterated our "Hold on to long positions with a trailing stop-loss"stance and had given upside target of 11150. The benchmark fell 16 points to settle at 11070 but is set to open above 11100 today.

11150 continues to be immediate upside target above which 11290 would be the next target to eye. Immediate support, after today's higher start, would have risen to 11000, with the stop-loss of which, existing longs should be held on to.

HDFC and Tech Mahindra will report their quarterly earnings today.

TRAIL STOP-LOSS TO 10950; 11150 NEXT

TRAIL STOP-LOSS TO 10950; 11150 NEXT

WORLD MARKETS

While Dow gained 0.2%, S & P 500 and Nasdaq fell 0.1% and 0.6% respectively on trade war concerns and the broad decline in the U.S. currency. Apple led the technology stocks lower.

Worries about further U.S. protectionist policies accentuated after Commerce Secretary Wilbur Ross suggested the U.S. was ready to enter a trade war.

US dollar index tumbled 0.8% to 89.24, fresh 2014 lows following U.S. Treasury Secretary Steven Mnuchin's comments that a weaker greenback was good for the country.

Commodities soared on weaker dollar. WTI crude rose 1.8% to $65.61 a barrel, hitting their highest level since December 2014 after US crude stockpiles fell for the tenth straight week.  Brent crude rose 59 cents, or 0.8%, to $70.55. Gold climbed $19.60 to settle at $1,356.30 per ounce.

European markets tumbled 0.7%-1.1%.

AT HOME

It was a day of consolidation as benchmark indices ended little changed after trading in a narrow range through the session. Sensex added 22 points to settle at 36161 while Nifty finished at 11086, up 2 points. BSE mid-cap and small-cap indices however fell 0.6% and 0.9% respectively. BSE Telecom and Consumer Durable indices tumbled 3.5% and 2.1% respectively, becoming top losers among sectoral indices while IT and FMCG indices were the top gainers, up 1.5% and 0.5% respectively.

FIIs net bought stocks and index futures worth Rs 776 cr and 1258 cr respectively but net sold stock futures worth Rs 647 cr. DIIs were net sellers to the tune of Rs 194 cr.

Rupee appreciated 9 paise to end at 63.69/$.

Finance minister Arun Jaitley yesterday unveiled details of the recapitalisation package for public sector banks (PSBs) that was announced in October.  The capital infusion plan for 2017-18 includes Rs 80,000 crore through recap bonds and the remaining Rs 8,139 crore through budgetary allocation.

OUTLOOK

Today morning, Hang Seng is flat while Shanghai and Nikkei are down 0.2% and 0.5% respectively. SGX Nifty is suggesting about 25 points higher start for our market.

Holding on to long positions with a trailing stop-loss continues to be the advice. 11150 is the next upside target to eye. Immediate support, after today's higher start, would move up to 10950, which should serve as the fresh stop-loss for long positions.

Maruti, Dr Reddy and UPL will report their quarterly earnings today.

Indian markets will remain shut tomorrow on account of Republic Day.

NIFTY ACHIEVES BIG 11000 TARGET; TRAIL STOP-LOSS TO 10900

NIFTY ACHIEVES BIG 11000 TARGET; TRAIL STOP-LOSS TO 10900

WORLD MARKETS

Dow ended flat while S & P 500 and Nasdaq gained 0.2% and 0.7% respectively. Market focus shifted from politics to corporate earnings after a three-day government shutdown came to an end on Monday.

Dow components Johnson & Johnson, Procter & Gamble and Travelers Cos. all reported better-than-expected earnings and revenue. Verizon, another Dow component, posted a profit that missed expectations, while sales surpassed analyst estimates. Netflix jumped 10% after the video streaming company reported expectation-topping subscriber growth numbers.

In response to President Trump approving tariffs on imported solar cells and certain washing machines earlier this week, South Korea indicated yesterday that it would raise the matter with the World Trade Organization.

Brent and US crude rose 1.4% each to settle at $69.96 and $64.47 per barrel respectively.

In Europe, FTSE and DAX gained 0.2% and 0.7% respectively while CAC and Italy fell 0.1% and 0.2% respectively.

AT HOME

Bull March continued as Sensex and Nifty surged 1% each to close above 36000 and 11000 marks respectively for the first time ever. Sensex added 342 points to settle at 36140 while Nifty finished at 11084, up 117 points. BSE mid-cap and small-cap indices gained 1.1% and 0.2% respectively. Except a 0.3% lower Consumer Durable index, all the BSE sectoral indices ended in green with Metal index leading the tally, up 4.3%, followed by 1.9% higher Oil & Gas index.

FIIs net bought stocks, index futures and stock futures worth Rs 1229 cr, 574 cr and 973 cr respectively. DIIs were net buyers to the tune of Rs 169 cr.

Rupee appreciated 13 paise to end at 63.74/$.

Indiabulls Housing reported 55% rise in quarterly net profit at Rs 1168 cr which included exceptional gain of Rs 238 cr. Revenue rose 36.7% to Rs 4106 cr. Gross NPA ratio improved to 0.77% from 0.85%, the lowest in 21 quarter.

OUTLOOK

Today morning, except a marginally higher Shanghai, other Asian markets are trading with cuts of upto 0.4%. SGX Nifty is suggesting about 15 points lower start for our market.

Nifty yesterday touched a high of 11093 before closing at 11084, achieving the 11000 target in our special report published in April 2017.

11120 followed by 11150 are next upside targets to eye.

Immediate support on the hourly chart has moved up to 10900, with the stop-loss of which, trading longs should be held on to.

10950 ACHIEVED, 11000 NEXT; TRAIL STOP-LOSS TO 10820

10950 ACHIEVED, 11000 NEXT; TRAIL STOP-LOSS TO 10820

WORLD MARKETS

US indices gained 0.2%-0.6% following a deal to end a government shutdown and as earnings reports remained solid.

The stopgap bill approved by the Senate will keep the U.S. government open through Feb. 8

European markets, except 0.2% lower FTSE, gained 0.2%-1%

AT HOME

It was yet another record setting day as Sensex and Nifty soared 0.8% and 0.7% respectively to end at fresh record highs. Sensex added 286 points to settle at 35798 while Nifty finished at 10966, up 71 points. BSE mid-cap and small-cap indices gained 0.6% and 0.8% respectively. Except 1.5% and 0.5% lower Telecom and Utilities indices, all the BSE sectoral indices ended in green with Energy and IT indices leading the tally, up 2.4% and 2% respectively.

FIIs net bought stocks and stock futures worth Rs 1568 cr and 1077 cr respectively but net sold index futures worth Rs 1804 cr. DIIs were net sellers to the tune of Rs 462 cr.

Rupee depreciated 2 paise to end at 63.87/$.

IMF raise global growth forecast this year and next to 3.9%, up 0.2% from its previous forecast. For India, forecasts were unchanged at 7.4% and 7.8% for 2018 and 2019 respectively.

Asian Paints reported less-than-expected revenue and volume growth but strong operational performance. Consolidated net profit rose 16% to Rs 567 cr while revenue remained flat at Rs 4267 cr. Volume growth was 7%.  

Axis Bank earnings beat expectations, with improvement in asset quality performance. Profit in December quarter grew by 25.3% year-on-year to Rs 726.4 cr. NII grew by 9.2% to Rs 4732 cr. Asset quality improved during the quarter as gross non-performing assets (as a percentage of gross advances) declined to 5.28% from 5.90% in previous quarter and net NPAs were lower at 2.56% from 3.12% QoQ. Slippages declined 50% q-o-q.

OUTLOOK

Today morning Asian markets are trading with gains of 0.3%-0.7% and SGX Nifty is suggesting about 35 points higher start for our market.

Nifty yesterday touched a high of 10975 before closing at 10966, achieving the 10950 target we had given when 10490 hurdle was taken out on 22nd December.

A higher start today would see Nifty achieving our next big target of 11000, which we had projected way back in April 2017 when 9119 resistance was taken out after a consolidation of two years. 11030 would be the next intraday level if Nifty sustains above 11000.

Immediate support on the hourly chart has moved up to 10820, with the stop-loss of which, existing longs should be held on to.

Indiabulls Housing and United Spirits will report their quarterly earnings today.

NIFTY MOVES CLOSER TO 10950 TARGET; TRAIL STOP-LOSS TO 10780

NIFTY MOVES CLOSER TO 10950 TARGET; TRAIL STOP-LOSS TO 10780

WORLD MARKETS

US indices gained 0.2%-0.6% on Friday, shrugging off worries about a possible government shutdown and hitting fresh record highs.

US 10-year yield hit its highest level since 2014, reaching 2.642%.

European markets added 0.4%-1.2% with DAX on the top. Basic resources were among the gainers following strong demand figures for metal in China. Euro zone current account surplus rose to 32.5 billion euros ($39.92 billion) in November from 30.3 billion euros in October.

For the week, US indices gained 0.9%-1%. In Europe, FTSE lost 0.6% but DAX and CAC gained 1.4% and 0.2% respectively. In Asia, Hang Seng and Shanghai surged 2.7% and 1.7% respectively while Nikkei was up 0.6%.

Back in the US, Congress failed in its last-minute efforts to pass a spending bill before a midnight deadline on Friday, which resulted in a temporary government "Shut Down". While shutdown continued for a second day, there were some signs of progress on Sunday, with Republicans appearing unified over plans to end the impasse with a temporary solution. Democrats, however, want an immigration agreement in place before they support a spending plan

AT HOME

Benchmark indices soared seven tenth of a percent to scale fresh record highs. Sensex settled at 35511, up 251 points while Nifty added 77 points to finish at 10894. BSE mid-cap and small-cap indices gained 0.8% and 0.9% respectively. All the BSE sectoral indices ended in green with Bankex leading the tally, up 1.5%, followed by 1.3% higher Finance and Realty indices.

FIIs net bought stocks and stock futures worth Rs 988 cr and 1310 cr respectively but net sold index futures worth Rs 26 cr. DIIs were net buyers to the tune of Rs 210 cr.

Rupee appreciated 1 paise to end at 63.85/$.

For the week, Sensex and Nifty gained 2.6% and 2% respectively, extending the winning streak to seventh straight week.

ONGC would acquire government's entire 51.11% stake in HPCL for about Rs 37,000 crore in an all-cash deal that would close by month-end. This is at a premium of around 14% to HPCL's closing price on Friday. The share sale will help government exceed its divestment target of Rs 72,500 crore in 2017-18. The government has already raised Rs 54,337 crore so far this year.

Reliance Industries’ Q3 profit rose 25% to Rs9,423 crore on the back of higher refining margins and its telecom arm Reliance Jio logging profit. Revenue rose to Rs1.1 trillion, an increase of 30.5%, thanks to doubling of sales in retail operations and the addition of Reliance Jio Infocomm Ltd’s numbers. Jio, the company’s telecom unit, reported a net profit of Rs 504 crore in just its second quarter of operations.

Wipro disappointed with flat dollar revenue growth at $2013 mb. In constant currency terms growth stood at 0.9%, which was in-line with estimates. Margin fell 250 bps to 14.8%, but stripped of exceptional loss, they stood at 17.1%. The company guided for 1-3% dollar revenue growth for Jan-March quarter.

HDFC Bank posted 20% y-o-y growth in net profit at Rs 4643 cr. NII rose 24% to Rs 10314 cr. Gross NPA ratio rose to 1.29% from 1.26% q-o-q and net NPA ratio rose to 0.44% from 0.43%.

ITC reported 17% y-o-y growth in net profit at Rs 3090 cr. Revenue from operations increased 5.7% to Rs 9772 cr. EBIDTA grew 10.1% to Rs 3904 cr and margins expanded 170 bps to 40%.

Kotak Mahindra Bank's standalone net profit rose 20% y-o-y to Rs 1053 cr. NII rose 17% to Rs 2394 cr. Gross NPA ratio improved to 2.31% from 2.47% q-o-q and net NPA ratio fell to 1.09% from 1.26%.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.5% and SGX Nifty is suggesting a flattish start for our market.

Nifty on Friday surged 77 points to settle at 10894 and is very close to 10950 target we had given after 10490 hurdle was taken out on 22nd December. Readers would also recall that in our special report published in early April 2017, we had given major target of 11000. Hence 10950 followed by 11000 continue to be upside targets to eye.

Immediate support on the hourly chart has moved up to 10780, with the stop-loss of which, trading longs should be held on to.

Asian Paints and Axis Bank will report their quarterly earnings today.

10950 CONTINUES TO BE UPSIDE TARGET; TRAIL STOP-LOSS TO 10715

10950 CONTINUES TO BE UPSIDE TARGET; TRAIL STOP-LOSS TO 10715

WORLD MARKETS

Dow and S & P 500 fell 0.4% and 0.2% respectively while Nasdaq ended flat, weighing the possibility of a government shutdown.

Congress needs to pass a spending bill by the end of Friday to avoid a government shutdown.

The benchmark 10-year yield rose to trade at 2.62 percent, near a multi-year high

In Europe, FTSE fell 0.3% while DAX gained 0.7% and CAC ended flat.

AT HOME

After rising nearly a percent in the initial trade, Sensex and Nifty saw a sharp dip in the late noon trade to end higher by 0.5% and 0.3% respectively. Sensex settled at 35260, up 178 points while Nifty added 28 points to finish at 10817. BSE mid-cap and small-cap indices nosedived 1.7% and 2% respectively. BSE Realty index nosedived 4.1%, becoming top loser among the sectoral indices, followed by 2.9% lower Metal index. FMCG and Finance indices were top gainers, up 0.7% and 0.6% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1895 cr, 679 cr and 1842 cr respectively. DIIs were net sellers to the tune of Rs 657 cr.

Rupee appreciated 3 paise to end at 63.85/$.

The GST Council yesterday revised rates of 29 goods and 53 services. Rates of goods such as bio-diesel, packaged drinking water, drip, irrigation system, bio-pesticides, among others have been brought down to 12% from 18%. Diamonds and precious stones will now attract 0.25% GST instead of 3%, while vibhuti and de-oiled brown rice will attract nil tax.

While there was extensive discussion to simplify the return filing process, a final decision will be taken in the next meeting via video conferencing. The decision on inclusion of real estate in GST has been deferred.

Bharti Airtel reported 11% q-o-q fall in its consolidated net profit for the third quarter ended December at Rs 306 cr. Revenue fell 6.7% to Rs 20319 cr. 37.3. Operating profit fell 5.7% q-o-q to Rs Rs 7469, its lowest level in the last 15 quarters. Operating margin rose slightly to 36.76% from 36.38%.

Ultratech posted 25% drop in net profit at Rs 421.5 cr while revenue rose 35% to Rs 7590 cr. Operational performance fell short of estimates with EBIDTA up 13.9% at Rs 1268 cr and operating margins down 310 bps at 16.7%.

Yes Bank reported 22% y-o-y growth in net profit at Rs 1077 cr. NII grew 27% to Rs 1889 cr. Asset quality improved during the quarter as gross non-performing assets (NPA) were lower at 1.72% compared to 1.82% in previous quarter and net NPAs were also lower at 0.93% from 1.04% QoQ.

OUTLOOK

Today morning, Asian makets are trading with modest gains and SGX Nifty is suggesting about 20 points higher start for our market.

At the risk of repeating, we have been working with target of 10950 ever since 10490 hurdle was taken out on 22nd December. Yesterday, Nifty, after touching a high of 10887, fell sharply to end at 10817 and is set to open modestly higher today.

10950 continues to be upside target to eye. Immediate support on the hourly chart has moved up to 10715, with the stop-loss of which, tradding longs should be held on to.

Reliance Industries, HDFC Bank, ITC, Kotak Mahindra Bank, Wipro and HCL Tech will report their quarterly earnings today.

NIFTY ON TRACK TO ACHIEVE 10950 TARGET; TRAIL STOP-LOSS TO 10700

NIFTY ON TRACK TO ACHIEVE 10950 TARGET; TRAIL STOP-LOSS TO 10700

WORLD MARKETS

Dow soared 1.2% while Nasdaq and S & P 500 rose 1% and 0.9% respectively on the back of stronger-than-expected quarterly results from some of the biggest U.S companies like Bank of America and US Bancorp.

Apple rose 1.7% after announcing plans to repatriate billions in overseas cash.

Dollar index rose about half a percent to 90.98.

European markets, except a 0.1% higher Italy, fell 0.4%-0.5%. Consumer inflation in the euro zone slowed down in December to 1.4% year-on-year from 1.5% in the previous month.

AT HOME

Benchmark indices soared just under a percent to scale fresh record highs. Sensex climbed 311 points to settle at 35082 while Nifty finished at 10788, up 88 points. BSE mid-cap and small-cap indices gained 0.7% and 0.4% respectively. All the BSE sectoral indices ended in green with Capital Goods index and Bankex leading the tally with gains of 1.6% each.

FIIs net bouhgt stocks and stock futures worth Rs 625 cr and 1876 cr respectively but net sold index futures worth Rs 667 cr. DIIs were net buyers to the tune of Rs 169 cr.

Rupee appreciated 15 paise to end at 63.89/$. The yield on 10-year bonds fell 16.6 basis points, the most since 15 November 2016, to close at 7.222%, compared to its previous day close of 7.269%

Banking stocks soared after government lowered the additional borrowing requirement for the current fiscal to Rs 20,000 crore from Rs 50,000 crore estimated earlier.

HUL reported better-than-expected results. Net profit grew 27% y-o-y to Rs 1326 cr and revene rose 14% to Rs 8590 cr. EBIDTA surged 45% to Rs 1680 cr and margins improved to 19.6% from 15.5%.

Bharti Infratel posted 6% dip in consolidated net profit at Rs 585 cr. Revenue rose 7% to Rs 3655 cr. EBIDTA rose 8% to Rs 1613 cr and operating margin stood at 44.1%.

Zee Entertainment reported a mixed set of earnings. Consolidated revenue grew by 12.1% yoy to Rs 1838 cr. EBITDA grew by 24.3% to Rs 552.5 cr and EBITDA margin expanded by 295 bps yoy to 30.1%. PAT grew 28.3% to Rs 322 cr.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.7% and SGX Nifty is suggesting about 50 points higher start for our market.

Just to reiterate, we have been working with major target of 10950 ever since 10490 hurdle was taken out on 22nd December. Nifty yesterday closed at 10788 and is set to open near 10850 today.

10950 continues to be upside target to eye. Immediate support on the hourly chart has moved up to 10700, with the stop-loss of which, trading long should be held on to.

Bharti Airtel, Yes Bank and Ultratech Cement will report their quarterly earnings today.

Banking stocks will be in focus as news reports suggest that the government is thinking of allowing 100% foreign direct investment in private banks.

10800, 10950 CONTINUE TO BE UPSIDE TARGETS; 10640 IMMEDIATE SUPPORT

10800, 10950 CONTINUE TO BE UPSIDE TARGETS; 10640 IMMEDIATE SUPPORT

WORLD MARKETS                             

After a positive start, US indices saw a sustained downward move through the session to end with cuts of upto half a percent on possibility of a government shutdown.

US Congress needs to pass a spending bill by the end of Friday to avoid a government shutdown. A point of contention between Republicans and Democrats is an immigration bill which Democrats want to pass. Those talks have complicated efforts to keep the government open.

Higher start was attributed to better-than-expected earnings and rising economic optimism under President Donald Trump. United Health and Citigroup posted better-than-expected earnings.

U.S. crude fell 0.9% to $63.73 and Brent declined 1.6% percent to settle at $69.15 a barrel.

European markets ended mixed with modest changes.

AT HOME

Sensex and Nifty lost 0.2% and 0.4% respectively to break three-day winning streak. Sensex settled at 34771, down 72 points while Nifty finished at 10700, down 41 points. BSE mid-cap and small-cap indicess plunged 1.7% and 2.2% respectively. Except 3.3% and 2.4% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red with Realty and Metal indices leading the tally, down 3.5% and 2.8% respectively.

FIIs net bought stocks and stock futures worth Rs 693 cr and 882 cr respectively but net sold index futures worth Rs 37 cr. DIIs were net sellers to the tune of Rs 246 cr.

Rupee fell 0.9% or 55 paise to close at 64.04/$, marking its biggest fall in eight months.

Research firm Gartner said that global IT spending is expected to grow 4.5% to USD 3.68 trillion this year.

OUTLOOK

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

After Nifty achieved 10700 target, we have been working with next major target of 10950 and had given intermediate target of 10800.

Nifty, after touching a high of 10782 on Monday, has eased and closed at 10700 yesterday.

10800, followed by 10950 continue to be upside targets to eye.

10640 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

HUL, ZEEL and Bharti Infratel will report their quarterly earnings today.

10700 ACHIEVED; 10800, 10950 NEXT

10700 ACHIEVED; 10800, 10950 NEXT

WORLD MARKETS                             

US markets were shut yesterday for Martin Luther King, Jr. Day.

Dollar index fell nearly a percent and half to 90.45, marking a three year low. Euro touched its highest levels in three years, climbing as high as $1.2296 before paring some gains to last trade at $1.2268.

Commodities rose on dollar weakness, with gold touching its highest levels in four months and more than 1% gains seen in copper, nickel and zinc.

European markets, except half a percent higher Italy, fell 0.1%-0.3%.

AT HOME

Sensex and Nifty gained 0.6% and 0.7% respectively to hit fresh record highs. Sensex added 251 points to settle at 34844 while Nifty finished at 10741, up 60 points. BSE mid-cap index however ended marginally in the red while the samll-cap index rose just 0.3%. BSE Finance index and Bankex gained 1.6% and 1.2% respectively, becoming top gainers among the sectoral indices while Telecom and Auto indices were the top losers, down 1% and 0.9% respectively.

FIIs net bought stocks and stock futures worth Rs 33 cr and 1671 cr respectively but net sold index futures worth Rs 554 cr. DIIs were net sellers to the tune of Rs 173 cr.

Rupee appreciated 15 paise to end at 63.49/$.

India's wholesale inflation eased marginally to 3.58% in December after hitting an eight-month high of 3.93% in November.

Trade deficit in December rose 41% y-o-y to USD 14.88 bn, a 37-month high, as imports surged 21% to USD 41.91 bn while exports rose 12.4% to USD 27 bn.

OUTLOOK

Today morning, Asian markets are trading with gains of upto 0.5% and SGX Nifty is suggesting a marginally higher start for our market.

Ever since Nifty took out 10490 hurdle, we have been working with targets of 10700 followed by 10950.

Nifty yesterday surged 60 points to end at 10741, achieving the 10700 target and moving towards the second target of 10950.

As mentioned in yesterday's report, before 10950, 10800 is the immediate target.

After yesterday's upmove, immediate support on the hourly chart has moved up to 10640, with the stop-loss of which, trading longs should be held on to.

10800, 10950 ABOVE 10700; STAY LONG WITH THE STOP-LOSS OF 10590

10800, 10950 ABOVE 10700; STAY LONG WITH THE STOP-LOSS OF 10590

WORLD MARKETS                             

Dow climbed 0.9% while S & P 500 and Nasdaq gained 0.7% each to hit fresh record highs after major banks, including J.P. Morgan and Wells Fargo, announced better-than-expected quarterly reports.

U.S. consumer prices excluding food and energy rose 0.3% in December from the prior month, beating the 0.2% forecast. Retail sales for December rose 0.4% while November figures were adjusted upwards.

Euro strengthened on news that German Chancellor Angela Merkel had made progress on the formation of a coalition government.

European markets rose 0.2%-0.5%.

For the week, US indices gained 1.6%-2%.

AT HOME

After witnessing wild swings on the back of Supreme Court related controversy, benchmark indices managed to end higher by about three tenth of a percent, notching fresh record high. Sensex settled at 34592, up 89 points while Nifty added 30 points to finish at 10681. BSE mid-cap index lost 0.2% while small-cap index added 0.05%. BSE Energy and Oil & Gas indices gained 0.7% each, becoming top gainers among sectoral indices, followed by 0.5% higher Bankex and Capital Goods indices. Realty index tumbled 1.5%, becoming top loser, followed by 0.5% lower FMCG and Power indices.

FIIs net sold stocks worth Rs 158 cr but net bought index futures and stock futures worth Rs 54 cr and 1086 cr respectively. DIIs were net buyers to the tune of Rs 696 cr.

Rupee appreciated 3 paise to end at 63.64/$.

For the week, Sensex and Nifty gained 1.3% and 1.2% respectively, extending the winning streak to sixth straight week.

Industrial Production for November grew at 8.4%, the highest in 25 months. Retail inflation in December stood at 5.2%, a 17-month high. Core inflation stood at 5%.

In an unprecedented move, four Supreme Court judges today came out against the Chief Justice of India, saying that the administration of the nation's top court was not in order.

Infosys matched earnings estimates for the December ended quarter and maintained its sales guidance for the financial year 2017-18. Net profit rose 37.7% q-o-q to Rs 5130 cr. Revenue rose 1.3% to Rs 17794 cr. Dollar revenue rose 1% to USD 2755 mn while constant currency growth stood at 0.8%. EBIT rose 1.7% to RS 4319 cr and margin expanded by 10 bps to 24.3%. Infy maintained its full-year revenue guidance at 5.5-6.5% in constant currency terms and at 6.5-7.5% in dollar terms but cut FY18 rupee sales growth forecast to 2.1-3.1% from 3-4%.

OUTLOOK

Today morning, except a 0.3% lower Shanghai, other Asian markets are trading with gains of 0.3%-0.8% and SGX Nifty is suggesting about 40 points higher start for our market.

In Friday's report we had reiterated the target of 10700 and had asked raising the stop-loss to 10590.

Nifty touched a high of 10690, nearly achieving the 10700 target, from where it plunged sharply to touch a low of 10597 but recovered smartly to close at 10681. A higher start today will take the benchmark past 10700 mark.

As we have been mentioning, above 10700, 10950 would be the next major target to eye. Before that, 10800 would be the immediate target to eye.

10590 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

U.S. markets will be closed on today for Martin Luther King, Jr. Day.