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.