NIFTY ACHIEVES 10700 TARGET; TRAIL STOP-LOSS TO 10600

NIFTY ACHIEVES 10700 TARGET; TRAIL STOP-LOSS TO 10600

WORLD MARKETS

Dow ended marginally in the red while Nasdaq and S & P 500 ended marginally in the green on Friday as technology shares pulled back.

Microsoft and Intel both reported better-than-expected earnings and revenue Thursday after the bell, while Chevron and Colgate posted quarterly profits that beat expectations.

The U.S. economy grew by 2.3% in the first quarter, as against the expected gain of 2%.

Leaders of South and North Korea met at the border between the two countries for historic face-to-face discussions and pledged to remove the risk of war and collaborate in order to secure complete denuclearization of the Korean Peninsula.

European markets, except half a percent lower Italy, gained 0.5%-1.1%.  Britain's GDP grew at 0.1% in the first three months of 2018, marking its weakest quarter of activity in more than five years.

For the week, S & P 500 ended flat whle Nasdaq and Dow fell 0.4% and 0.6% respectively. European markets gained 0.3%-1.8% with FTSE on the top. In Asia, Nikkei surged 1.4%, Shanghai added 0.4% but Hang Seng fell 0.4%.

AT HOME

Benchmark indices gained seven tenth of a percent to close at the highest level since 2nd February. Sensex climbed 256 points to settle at 34970 while Nifty finished at 10692, up 74 points. BSE mid-cap and small-cap indices gained 0.8% and 0.4% respectively. BSE Bankex added 2%, becoming top gainer among the sectoral indices, followed by 1.4% higher Capital Goods index. IT and Teck indices were the top losers, down 1.1% and 0.7% respectively.

FIIs net sold stocks worth Rs 759 cr but net bought index futures and stock futures worth Rs 669 cr and 1109 cr respectively. DIIs were net buyers to the tune of Rs 634 cr.

Rupee appreciated 1 paise to end at 66.75/$.

For the week, Sensex and Nifty gained 1.6% and 1.2% respectively, extending the winning streak to fifth straight week.

Maruti earnings missed street expectations on operational and bottom line front. Net profit rose 10% y-o-y to Rs 1882 cr and revenue rose 0.8% to Rs 20594 cr. Operating profit margin rose 20 bps to 14.2%.

Reliance Industries reported largely in-line with estimated numbers however performance of refining and telecom vertical was lower-than-expected. Consolidated net profit rose 17.3% y-o-y to Rs 9459 cr. Turnover rose 39% to Rs 1.3 lac crore. Operating profit rose 51% to Rs 18469 cr. Gross refining margins stood at $11 per barrel.

OUTLOOK

Today Nikkei and Shanghai are shut while Hang Seng SGX Nifty is suggesting about 20 points higher start for our market.

Readers would recall that we had given target of 10705, the 61.8% retracement level of the entire 11171-9951 fall, after 50% retracemenent level of 10560 was taken out. Nifty, on Friday touched a high of 10720 before closing at 10692, achieving this target and vindicating our view.

Next target comes to around 10770, which is the two-third retracement level of entire fall.

Immediate support on the hourly chart has now moved up to 10600, with the stop-loss of which, existing longs should be held on to.

HDFC and Kotak Mahindra Bank will report their quarterly earnings today.

10700 ABOVE 10638; 10515 IS IMMEDIATE SUPPORT

10700 ABOVE 10638; 10515 IS IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 climbed 1% each while Nasdaq surged 1.6% on the back of strong quarterly results from some of the biggest U.S. corporate.

Face book, AMD and Chipotle surged 9%, 14% and 24% respectively after posting better-than-expected earnings.

Also supporting equities was the fall in US treasury yields from a more than four-year high to below 3% after the European Central Bank kept interest rates unchanged and reaffirmed its simulative monetary policy stance.

US crude rose 14 cents to $68.19 and Brent gained 74 cents to settle at $74.74 a barrel after French President Emmanuel Macron said he expects U.S. President Donald Trump to restore sanctions on Iran.

U.S. durable goods orders rose 2.6% in March, far more than the expected 1.6% gain. Weekly jobless claims totaled 209,000 last week, below a forecast of 230,000.

European markets gained 0.6%-1%.

AT HOME

After trading in a narrow range for most of the day, sensex and Nifty surged in last half an hour to end with gains of 0.6% and 0.4% respectively. Sensex added 212 points to settle at 34714 while Nifty finished 47 points higher at 10618. BSE mid-cap index ended flat while small-cap index gained 0.2%. BSE FMCG and IT indices climbed 1.2% each, becoming top gainers among sectoral indices while Telecom index tumbled 2.6%, becoming top loser, followed by 0.8% lower Realty index.

FIIs net sold stocks worth Rs 1056 cr but net bought index futures and stock futures worth Rs 762 cr and 1541 cr respectively. DIIs were net buyers to the tune of Rs 684 cr.

Rupee appreciated 14 paise to end at 66.76/$.

Yes Bank soared after reporting better-than-expected earnings and asset quality. Net profit rose 29% y-o-y to Rs 1179 cr on 31.4% rise in NII, which stood at Rs 2154 cr. Gross NPA ratio improved to 1.28% from 1.72% q-o-q and net NPA ratio improved to 0.64% from 0.93%. Advance growth stood at 53.9% y-o-y.

Axis Bank posted a loss of Rs 2189 cr, marking its first quarterly loss in its 20 year history, as as asset quality worsened. Slippages for the quarter nearly quadrupled YoY to Rs 16,536 crore with nearly Rs 13,900 crore of new slippages coming from the corporate sector. Provisions were at Rs 7180 crore up from Rs 2581 crore in March quarter last year. NII was flat at Rs 4,730 cr. Gross NPA ratio worsened to 5.28% from 5.04% q-o-q and net NPA ratio rose to 2.56% from 2.11%.

OUTLOOK

Today morning, Shanghai is flat but Nikkei and Hang Seng are up about half a percent. SGX Nifty is suggesting about 20 points higher start for our market.

In yesterday's report we had reiterated the view that 10550-10515 is the immediate support zone, with the stop-loss of which, trading longs should be held on to. We had also said that 10638 is the immediate hurdle, a crossover of which is required for a fresh upmove.

Nifty yesterday closed at 10618 and is set to open around 10638 hurdle today. Upon sustained trading above 10638, next target, as we have been mentioning, would come around 10700, which is the 61.8% retracement level of the entire 11171-9951 fall.

10515, the bottom made during the week, continues to be immediate support, with the stop-loss of which, existing longs should be held on to.

Reliance Industries, Maruti and UPL will report their quarterly earnings today.

NIFTY REBOUNDS FROM 10515-10550 SUPPORT ZONE; 10638 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM 10515-10550 SUPPORT ZONE; 10638 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

After negative start, US indices saw a sustained northward move through the session to end flat to modestly higher, with the Dow breaking five-day losing streak.

Recovery was led by Boeing, which surged 4.2% after reporting quarterly results that easily beat market expectations.

US 10-year treasury yield traded at 3.03% after breaking above 3% for the first time since 2014 on Tuesday. Dollar index gained nearly half a percent to reach 91.26, the highest level in nearly four months.

Twitter and Comcast also released better-than-expected earnings.

U.S. crude gained 35 cents to $68.05 a barrel while Brent added 14 cents to $74.

European markets fell 0.6%-1%.

AT HOME

After trading in a narrow range, benchmark indices slipped in the late noon trade to end with cuts of nearly four tenth of a percent. Sensex lost 115 points to settle at 34501 while Nifty lost 44 points to finish at 10570. BSE mid-cap and small-cap indices fell 0.5% and 0.7% respectively. BSE Metal and Oil & Gas indices tumbled 1.4% and 1.3% respectively, becoming top losers among the sectoral indices while IT and Telecom indices were the top gainers, up 1.2% and 0.7% respectively.

FIIs net sold stocks worth Rs 305 cr but net bought index futures and stock futures worth Rs 163 cr and 319 cr respectively. DIIs were net buyers to the tune of Rs 436 cr.

Rupee nosedived 52 paise to hit a 14-month low of 66.90/$.

Ultratech reported 29% y-o-y dip in March quarter standalone net profit at Rs 488 cr due to Rs 226 cr provision for stamp duty, stripped off which profit was nearly unchanged at Rs 667 cr. Revenue rose 36.5% to Rs 9002 cr. Domestic volume surged 32% to 17.64 million tonne. EBIDTA jumped 33.2% to Rs 1703 cr and margin contracted 50 bps to 18.9%.

Wipro’s earnings were a big miss and guidance too disappointed. Net profit dipped 6.7% q-o-q to Rs 1803 cr as it made provisions for an insolvent client and an impairment loss in one of its acquisitions. Revenue grew 0.7% to Rs 13669 cr. Revenue in dollar terms from IT services rose 2.4% sequentially at $2.06 billion, in line with what the company had forecast. IT services revenue in constant currency terms remained flat at Rs 13,410 crore. The IT services margin for the quarter stood at 14.4%. Company guided for IT services revenue growth of -2.3%-0.1% for June quarter.

OUTLOOK

Today morning, Shanghai is flat while Hang Seng and Nikkei are up 0.3% and 0.7% respectively.   SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 10550-10515 is the immediate support zone for Nifty, a breach of which would trigger a "sell" on the hourly chart and would pave the way for further correction.

Nifty, after touching a low of 10536, recovered to close at 10570 and is set to open around the same level today.

10550-10515 continues to be immediate support zone. 10638, the top made on Monday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove.

Meanwhile, traders are advised to hold long positions with the stop-loss of 10515.

Axis Bank and Yes Bank will report their quarterly earnings today.

NIFTY REBOUNDS FROM 10515-10550 SUPPORT ZONE; 10638 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM 10515-10550 SUPPORT ZONE; 10638 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

After negative start, US indices saw a sustained northward move through the session to end flat to modestly higher, with the Dow breaking five-day losing streak.

Recovery was led by Boeing, which surged 4.2% after reporting quarterly results that easily beat market expectations.

US 10-year treasury yield traded at 3.03% after breaking above 3% for the first time since 2014 on Tuesday. Dollar index gained nearly half a percent to reach 91.26, the highest level in nearly four months.

Twitter and Comcast also released better-than-expected earnings.

U.S. crude gained 35 cents to $68.05 a barrel while Brent added 14 cents to $74.

European markets fell 0.6%-1%.

AT HOME

After trading in a narrow range, benchmark indices slipped in the late noon trade to end with cuts of nearly four tenth of a percent. Sensex lost 115 points to settle at 34501 while Nifty lost 44 points to finish at 10570. BSE mid-cap and small-cap indices fell 0.5% and 0.7% respectively. BSE Metal and Oil & Gas indices tumbled 1.4% and 1.3% respectively, becoming top losers among the sectoral indices while IT and Telecom indices were the top gainers, up 1.2% and 0.7% respectively.

FIIs net sold stocks worth Rs 305 cr but net bought index futures and stock futures worth Rs 163 cr and 319 cr respectively. DIIs were net buyers to the tune of Rs 436 cr.

Rupee nosedived 52 paise to hit a 14-month low of 66.90/$.

Ultratech reported 29% y-o-y dip in March quarter standalone net profit at Rs 488 cr due to Rs 226 cr provision for stamp duty, stripped off which profit was nearly unchanged at Rs 667 cr. Revenue rose 36.5% to Rs 9002 cr. Domestic volume surged 32% to 17.64 million tonne. EBIDTA jumped 33.2% to Rs 1703 cr and margin contracted 50 bps to 18.9%.

Wipro’s earnings were a big miss and guidance too disappointed. Net profit dipped 6.7% q-o-q to Rs 1803 cr as it made provisions for an insolvent client and an impairment loss in one of its acquisitions. Revenue grew 0.7% to Rs 13669 cr. Revenue in dollar terms from IT services rose 2.4% sequentially at $2.06 billion, in line with what the company had forecast. IT services revenue in constant currency terms remained flat at Rs 13,410 crore. The IT services margin for the quarter stood at 14.4%. Company guided for IT services revenue growth of -2.3%-0.1% for June quarter.

OUTLOOK

Today morning, Shanghai is flat while Hang Seng and Nikkei are up 0.3% and 0.7% respectively.   SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 10550-10515 is the immediate support zone for Nifty, a breach of which would trigger a "sell" on the hourly chart and would pave the way for further correction.

Nifty, after touching a low of 10536, recovered to close at 10570 and is set to open around the same level today.

10550-10515 continues to be immediate support zone. 10638, the top made on Monday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove.

Meanwhile, traders are advised to hold long positions with the stop-loss of 10515.

Axis Bank and Yes Bank will report their quarterly earnings today.

10638 CONTINUES TO BE IMMEDIATE HURDLE; 10550-10515 SUPPORT ZONE

10638 CONTINUES TO BE IMMEDIATE HURDLE; 10550-10515 SUPPORT ZONE

WORLD MARKETS

After opening higher about half a percent on the back better-than-expected earnings from United Technologies, Verizon and Coca-Cola Dow and Nasdaq tumbled 1.7% each while S & P 500 fell 1.3% on rising interest rates and comments from Caterpillar that hinted economic growth may slow later in the year.

10-year treasury yield broke above 3% for the first time since January 2014.

Caterpillar plunged 6.2% after the CFO, during a conference call, said that the company's outlook assumed that the first quarter would be "the high watermark for the year." 3M nosedived 6.8% after the company lowered its full-year profit forecast. Alphabet topped bottom-line estimates but its stock declined more than 4.5%.

US oil fell 94 cents to $67.70 and Brent eased 85 cents to $73.86 a barrel after Trump said that the U.S. could soon reach an agreement with France that would preserve the 2015 Iran nuclear deal.

AT HOME

Sensex and Nifty gained 0.5% and 0.3% respectively to close at the highest level since 5th February. Senex settled 166 points higher at 34616 while Nifty added 30 points to finish at 10614. BSE mid-cap index flat while small-cap index fell 0.1%. BSE Energy and Oil & Gas indices climbed 2.4% and 1.5% respectively, becoming top gainers among sectoral indices while Metal and IT indices tumbled 1.8% and 1.7% respectively, becoming top losers.

FIIs net sold stocks and stock futures worth Rs 681 cr and 65 cr respectively but net bought index futures worth Rs 275 cr. DIIs were net buyers to the tune of Rs 509 cr.

Rupee appreciated 10 paise to end at 66.38/$, breaking its six-day losing streak.

Bharti Airtel reported 78% y-o-y dip in March quarter net profit at Rs 83 cr. Revenue fell 3% to Rs 19634 cr. EBIDTA fell 7% q-o-q to Rs 7034 cr and operating margin fell to 35.8% from 37.3%.

OUTLOOK

Today morning, Asian markets are trading with cuts in the vicinity of half a percent and SGX Nifty is suggesting about 50 poins lower start for our market.

In yesterday's report we had reiterated the view that 10638, the top made on Monday, which also coincides with the couple of tops made in February, is the immediate hurdle, a crossover of which is required for a fresh upmove. Yesterday, Nifty, after touching a high of 10637, closed at 10620 and is set to open below 10600 today.

10550-10515 is the immediate support zone, a breach of which would generate a sell on the hourly chart and would pave the way for further correction. 10638 continues to be immediate hurdle above which 10700, the 61.8% retracement level of the entire 11171-9951 fall, would be the next target to eye.

Traders are advised to hold long positions with the stop-loss of 10515.

Wipro will report its quarterly earnings today.

NIFTY RETREATS AFTER ACHIEVING 10630 TARGET; TRAIL STOP-LOSS TO 10515

NIFTY RETREATS AFTER ACHIEVING 10630 TARGET; TRAIL STOP-LOSS TO 10515

WORLD MARKETS

S & P 500 ended flat while Dow and Nasdaq, pressured by rising rates and weak technology stocks, fell 0.1% and 0.2% respectively. Dow had its first four-day losing streak since March.

The 10-year Treasury note yield hit a high of 2.99%, the highest since January 2014. Dollar index rose about two third of a percent to 90.93, the highest level in nearly 3-months.

Oil prices rose with WTI up 24 cents to $68.64 and Brent up 65 cents to $74.71 a barrel.

Aluminium nosedived nearly 10% and Alcoa plunged 13.5% after the U.S. government said it would not impose previously announced sanctions against Rusal until October.

European markets gained 0.2%-0.6%.

AT HOME

After gaining about seven tenth of a percent, benchmark indices saw a sharp dip in late noon trade to end with just modest gains. Sensex settled 35 points higher at 34451 while Nifty finished at 10584, up 20 points. BSE mid-cap and small-cap indices climbed half a percent each. BSE Realty and Healthcare indices rose 1.8% and 1.3% respectively, becoming top gainers among sectoral indices while Metal and FMCG indices were the top losers, down 0.9% and 0.4% respectively.

FIIs net sold stocks and stock futures worth Rs 259 cr and 130 cr respectively but net bought index futures worth Rs 177 cr. DIIs were net buyers to the tune of Rs 387 cr.

Rupee depreciated 36 paise to end at 66.48/$, extending the losing streak to sixth straight day.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.4%-0.6% and SGX Nifty is suggesting about 35 points lower start for our market.

After Nifty achieved 10560 target, we had given next target of 10630, in the vicinity of which couple of tops made in February were placed.

Yesterday, Nifty, after touching a high of 10638, slipped to end at 10584 and is set to open around 10550 today.

10515, the bottom made yesterday, is now the immediate support, a breach of which will generate a "sell" on the hourly chart and would pave the way for further correction.

10638, the top made yesterday, is the immediate hurdle, upon crossover of which, 10700, the 61.8% retracement level of the entire 11171-9951 fall, would be the next target to eye.

Traders are advised to trail stop-loss in long positions to 10515.

Bharti Airtel will report its quarterly earnings today.

NIFTY EXTENDS CONSOLIDATION; 10495 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY EXTENDS CONSOLIDATION; 10495 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 fell 0.8% each while Nasdaq tumbled 1.3% on Friday as Apple tumbled and interest rates rose.

Apple shares fell 4.1% after Morgan Stanley said the company's iPhone sales for the June quarter will disappoint Wall Street. General Electric rose 4% after reporting quarterly earnings and revenue that beat expectations and reaffirming its outlook for the rest of 2018. Honeywell also posted stronger-than-expected earnings.

10-year yield reached 2.96% — its highest level since 2014 — while the two-year yield rose to its highest level in a decade.

US oil, after falling to $67.50 on a tweet by Trump suggesting that OPEC is keeping oil prices artificially high, rebounded to settle 9 cents higher at $68.38 a barrel.

European markets, except a 0.2% lower DAX, gained 0.2%-0.5%.

Talking about the whole week, US indices, after gaining more than 2%, slipped towards the end of the week to settle just half a percent higher. European markets gained 0.8%-1.8%. In Asia, Nikkei climbed 1.8% but Hang Seng and Shanghai slipped 1.3% and 2.8% respectively.

North Korean leader Kim Jong Un declared that he will suspend nuclear and missile tests starting Saturday and that he will shut down the site where the previous six nuclear tests were conducted.

AT HOME

After falling about a third of a percent in first half, benchmark indices recouped all the losses later to end little changed. Sensex settled 12 points lower at 34415 while Nifty finished at 10564, down 1 point. BSE mid-cap index fell 0.4% while small-cap index ended flat. BSE IT and Teck indices soared 4.8% and 3.9% respectively, becoming top gainers among sectoral indices while Utilities index was the top loser, down 1.2%, followed by 1.1% lower Realty index.

FIIs net sold stocks and stock futures worth Rs 21 cr and 425 cr respectively but net bought index futures worth Rs 200 cr. DIIs were net buyers to the tune of Rs 111 cr.

Rupee depreciated 45 paise to end at 66.11/$, a thirteen-month low.

HDFC Bank reported 20% rise in net profit at Rs 4799 cr. Loan growth stood at 18.7% while other income rose 32%. NII grew 18% to Rs 10658 cr. Gross NPA ratio rose to 1.30% from 1.29% while Net NPA ratio improved to 0.40% from 0.44% q-o-q.

Indiabulls Housing posted 22.6% rise in consolidated net profit at Rs 1030 cr. NII was up by 22.2% to Rs 1662 cr. Gross and Net NPA ratio improved to 0.77% and 0.34% from 0.85% and 0.36% respectively. Loan growth was 33.3%.

OUTLOOK

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

Nifty, after achieving the 50% retracement level of the entire 11171-9951 fall placed at 10560 on Tuesday is in a consolidation mode for last three sessions. The benchmark closed at 10564 on Friday and is set to open below 10550 today.

10495 continues to be immediate support, a breach of which will generate a "sell" on the hourly chart and would pave the way for further correction.

On the way up, 10630, in the vicinity of coupled of tops made in February are placed, is the immediate upside target to eye. Once that is taken out 10705, the 61.8% retracement level of the entire 11171-9951 fall, would be the next important target as well as resistance to eye.

Meanwhile, traders are advised to hold long positions with the stop-loss of 10495.

KEEP STOP-LOSS OF 10495

KEEP STOP-LOSS OF 10495

WORLD MARKETS

US indices, weighed down by fall in technology stocks and rise in interest rate, fell 0.3%-0.8%.

Technology stocks fell after Taiwan Semiconductor Manufacturing (TSMC), the largest contract chipmaker in the world, said it expects second-quarter revenue to range between $7.8 billion and $7.9 billion, well below a market estimate of $8.8 billion

US 10-year Treasury note yield broke above 2.9% and two-year yield traded near highest levels in nearly a decade.

Weekly jobless claims totaled 232,000, slightly more than expected. The Philadelphia Fed index hit 23.2 for April, higher than estimate of 20.

European markets, except 0.2% lower DAX, gained upto 0.2%.

US oil fell 0.3%.

AT HOME

Sensex and Nifty finished with gains of 0.3% and 0.4% respectively after a rangebound session. Sensex added 96 points to settle at 34427 while Nifty finished at 10565, up 39 points. BSE mid-cap and small-cap indices climbed 0.6% each. BSE Metal index soared 4.5%, becoming top gainer among sectoral indices, followed by 2.8% higher Basic Material index. Oil & Gas and Consumer Durable indices were the top losers, down 1.3% and 0.9% respectively.

FIIs net sold stocks worth Rs 625 cr but net bought index futures and stock futures worth Rs 792 cr and 264 cr respectively. DIIs were net buyers to the tune of Rs 449 cr.

Rupee depreciated 13 paise to end at 65.79/$.

Indusind Bank reported 27% y-o-y rise in March quarter net profit at Rs 953 cr. NII rose 20.4% to Rs 2008 cr. Net interest margin dipped 3 bps q-o-q to 3.97%. Gross NPA ratio rose 1 bps to 1.17% and Net NPA ratio worsened 5 bps to 0.51%. Slippages more than doubled to Rs 860 cr and provisions for bad loans rose 42% q-o-q to Rs 335 cr.

TCS beat market expectations on all front barring operating profit margin that was in line. Revenue in dollar terms increased 3.9%, the highest growth in last 14 quarters, to USD 4,972 million. Constant currency growth stood at 2%. In rupee terms, revenue from operations for the quarter grew by 3.8% to Rs 32,075 cr. Consolidated net profit rose 5.7% q-o-q to Rs 6904 cr. EBIT increased 4.7% to Rs 8,147 cr and margin improved 20 bps to 25.4%. It also announced 1:1 bonus.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.4% and SGX Nifty is suggesting about 40 points lower start for our market.

Readers would recall that we have maintained positive stance on Nifty ever since immediate hurdle of 10130 was taken out on 26th March and have been advising holding on to long positions with a trailing stop-loss. In yesterday's report, we had mentioned that 10630, in the vicinity of couple of tops were made in February, is the immediate hurdle to eye above which 10700, the 61.8% retracement level of the entire 11171-9951 fall, would be the next target to eye.

Nifty yesterday traded within previous day's range and finally settled at 10565 and is set to open lower today.

10495, as mentioned in yesterday's report, continues to be immediate support, a decisive breach of which would generate a sell on the hourly chart and would pave the way for further correction.

Traders are advised to hold existing longs with the stop-loss of 10495.

10630, 10700 ARE UPSIDE TARGETS; TRAIL STOP-LOSS TO 10495

10630, 10700 ARE UPSIDE TARGETS; TRAIL STOP-LOSS TO 10495

WORLD MARKETS

Dow, weighed down by IBM, fell 0.2% but S & P 500 and Nasdaq ended with modest gains on the back of some strong corporate earnings.

Rail transportation company CSX and United Airlines also posted better-than-expected results. Morgan Stanley reported a record profit and revenue for the first quarter.

IBM nosedived 7.5% despite reporting earnings and revenue that topped expectations as forward-looking guidance disappointed.

The Federal Reserve said in the latest Beige Book the U.S. economic outlook remains positive, but noted that steel prices are rising due to tariffs.

US oil jumped 2.9% to $68.47 a barrel, its strongest levels since late 2014 on data that showed a drop in U.S. crude inventories. Brent rose 2.7% to $73.48.

In Europe, DAX ended flat while FTSE soared 1.3% and CAC rose 0.5%. Auto stocks fell after data showed European car registrations fell 5.2%. The British pound fell on the back of March U.K. inflation coming in at a one-year low of 2.5% in March, down from 2.7% in February. Eurozone inflation came in at 1.3%, an increase from the previous month, but lower than estimates.

AT HOME

After gaining just under half a percent, benchmark indices saw a sharp dip in late noon trade to end with modest cuts, breaking the nine-day gaining streak. Sensex settled at 34331, down 63 points while Nifty lost 22 points to finish at 10526. BSE mid-cap and small-cap indices fell 0.1% and 0.4% respectively. BSE Consumer Durable index tumbled 1.2%, becoming top loser among sectoral indices, followed by 0.8% lower Bankex and Energy indices. FMCG index soared 1.6%, becoming top gainer, followed by 0.5% higher Telecom and Realty indices.

FIIs net sold stocks and stock futures worth Rs 916 cr and 188 cr respectively but net bought index futures worth Rs 2320 cr. DIIs were net buyers to the tune of Rs 870 cr.

Rupee depreciated 2 paise to end at 65.66/$.

Defending the Reserve Bank of India’s (RBI) norms on resolution of banks’ non-performing assets (NPAs), announced in February, RBI Deputy Governor N.S. Vishwanathan said these are outcome-oriented and provide banks the flexibility on deciding the contours of resolution. As per the RBI’s revised framework on NPAs, banks are required to classify even a day’s delay in paying loan installments as a default.

OUTLOOK

Today morning, Shanghai is little changed but Hang Seng and Nikkei are up 0.8% each. SGX Nifty is suggesting about 40 points higher start for our market.

After Nifty achieved 10420 and 10560 targets, we had given next target of 10700, which is the 61.8% retracement level of the entire 11171-9951 fall. Nifty yesterday touched a high of 10594 before closing at 10538 and is set to open above 10550 today.

10700 continues to be next major target as well as resistance to eye. Before that 10630, in the vicinity of couple of tops were made in February, will be the immediate hurdle to eye.

Immediate support on the hourly chart has moved up to 10495, with the stop-loss of which, existing longs should be held on to.

TCS and Indusind Bank will report their quarterly earnings today.