TRAIL STOP-LOSS TO 10400

TRAIL STOP-LOSS TO 10400

WORLD MARKETS

US indices, weighed down by bank stocks, fell 0.3%-0.5% on Friday.

Citigroup, Wells Fargo and J.P. Morgan Chase all reported quarterly earnings and revenue that surpassed market expectations. Stocks however fell after initially trading higher, as the strong results were already priced in.

The University of Michigan's consumer sentiment index ticked down to 97.8 in April from 101.4 in March.

European markets gained 0.1%-0.2%.

For the week, US indices surged 1.8%-2.8%. European markets gained 1.1%-1.6%. In Asia, Hang Seng surged 3.2% while Nikkei and Shanghai were up a percent. US oil soared 8.6% for the week.

On Saturday, the United States, France and Britain launched 105 missiles targeting three chemical weapons facilities in Syria in retaliation for a suspected poison gas attack in Douma on April 7.

Russian President Vladimir Putin warned on Sunday that further Western attacks on Syria would bring chaos to world affairs.

AT HOME

Benchmark indices gained about a fourth of a percent, extending the winning streak to seventh straight day. Sensex added 91 points to settle at 34192 while Nifty finished at 10480, up 22 points. BSE mid-cap and small-cap indices rose 0.5% and 0.3% respectively. BSE Metal index climbed 1%, becoming top gainer among the sectoral indices, followed by 0.6% higher Basic Material and Healthcare indices. Telecom index was the top loser, down 0.7%, followed by 0.3% lower Capital Goods and FMCG indices.

FIIs net sold stocks and index futures worth Rs 400 cr and 249 cr respectively but net bought stock futures worth Rs 836 cr. DIIs were net buyers to the tune of Rs 306 cr.

Rupee appreciated 5 paise to end at 65.20/$.

For the week, Sensex and Nifty gained 1.7% and 1.4% respectively, extending the winning streak to third consecutive week.

Infosys reported mixed numbers. Revenue rose 0.6% in constant currency terms, which was lower than the estimated 1% figure. Margin however rose 40 bps to 24.7% as against expectation of being flat. The company reported 5.8% growth in 2017-18 and guided for a 6-8% revenue growth in constant currency terms for 2018-19 which was in line with market expectation. However, its EBIDTA margin forecast of 22-24% is below the current level. The ADR plunged nearly 8%.

India's trade deficit in March widened to $13.69 bn in March from $11.98 bn in as exports dipped 0.7% y-o-y to $29.1 bn while imports rose 7.2% to $42.8 bn.

OUTLOOK

Today morning, Nikkei is modestly higher but other Asian markets are trading with modest cuts. SGX Nifty is suggesting about 40 points lower start for our market.

After Nifty achieved 10420 target, which was the 38.2% retracement level of the entire 11171-9951 fall, we had given next target of 10560, which is the 50% retracement level of this fall.

Nifty, on Friday, touched a high of 10520 before closing at 10480 and is set to open around 10450.

10560 continues to be next upside target as well as resistance to eye. Immediate support on the hourly chart has moved up to 10400, with the stop-loss of which, existing longs should be held on to.