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.