10276 CONTINUES TO BE MAJOR SUPPORT; 10638 IMMEDIATE HURDLE

10276 CONTINUES TO BE MAJOR SUPPORT; 10638 IMMEDIATE HURDLE

WORLD MARKETS

US markets nosedived 3.8%-4.2% after treasury yields rebounded to near four-year highs on the back of BoE statement and strong jobs data.

The benchmark 10-year U.S. note yield rose to 2.88% after The number of Americans filing for unemployment benefits unexpectedly fell last week, dropping to its lowest level in nearly 45 years.

The Bank of England (BOE) held rates steady, but said that it might need to hike rates faster and more frequently than previously expected to keep inflation in check.

Oil fell for the fifth straight day with WTI down 64 cents, or 1% at $61.15 and Brent down 70 cents, or 1.1% to $64.81 a barrel after Iran announced plans to increase production.

European markets fell 1.5%-2.6%.

AT HOME

Benchmark indices ended with gains of a percent to break seven-day losing streak. Sensex added 330 points to settle at 34413 while Nifty finished at 10577, up 100 points. BSE mid-cap and small-cap indices outperformed yet again, climbing 1.8% and 2.2% respectively. Except a 0.2% lower Oil & Gas index, all the BSE sectoral indices ended in green with Healthcare and Realty indices leading the tally, up 2.9% and 2.5% respectively.

FIIs net sold stocks worth Rs 2297 cr but net bought index futures and stock futures worth Rs 244 cr and 1302 cr respectively. DIIs were net buyers to the tune of Rs 2378 cr.

Rupee appreciated 3 paise to end at 64.26/$.

ACC reported 128% y-o-y jump in net profit at Rs 206 cr, driven by strong operational as well as sales performance. Revenue grew by 29.5% to Rs 3494 cr. Operating profit rose 54.2% to Rs 443 cr and margins expanded 200 bps to 12.7%.

OUTLOOK

Today morning, Asian markets are trading with cuts of 2%-3% and SGX Nifty is suggesting about 200 points lower start for our market.

Nifty yesterday gained 100 points to end at 10577 and a gap down today will take it below 10400.

As we have been mentioning, 10276, the bottom made on Tuesday, continues to be crucial support to eye as it roughly coincides with the important 34-week moving average placed around 10200.

On the way up, 10638, the top made yesterday, is the immediate hurdle above which 10725, the 50% retracement level of the recent 11171-10276 fall, would be the next hurdle to eye.

SBI, BoB, ONGC, M & M and Tata Steel will report their quarterly earnings today.