10785-10600 IS THE IMMEDIATE RANGE

10785-10600 IS THE IMMEDIATE RANGE

WORLD MARKETS

US indices gained 0.4%-0.8% but ended off-the day high after President Trump tweeted he will be announcing his decision on the Iran deal on Tuesday.

The higher start was attributed to strong gains in energy stocks as US crude rose above $70 per barrel while Brent hit $75.89.

European markets gained 0.3%-1%.

AT HOME

Benchmark indices soared just under a percent on the first day of the week, breaking 3-day losing streak. Sensex added 293 points to settle at 35208 while Nifty finished at 10715, up 97 points. BSE mid-cap and small-cap indices rose 0.6% each. Except a 0.5% lower Healthcare index and flat IT index, all the BSE sectoral indices ended in green with Metal and Oil & Gas indices leading the tally, up 1.7% and 1.6% respectively.

FIIs net sold stocks worth Rs 635 cr but net bought index futures and stock futures worth Rs 104 cr and 648 cr respectively. DIIs were net buyers to the tune of Rs 1037 cr.

Rupee depreciated 27 paise to end at 67.13/$, the weakest level in 15-months.

ICICI Bank's slippages nearly quadrupled to Rs 15737 cr from Rs 4380 cr. However 75% of these slippages came from watchlist, raising hopes that the worst in terms of asset quality might be over. Loan growth stood at 10.4%. Net profit fell 50% to Rs 1020 cr. NII rose about 1% to Rs 6022 cr. Gross NPA ratio worsened to 8.84% from 7.82% and net NPA ratio rose to 4.77% from 4.20%. The ADR rose 4%. 

OUTLOOK

Today morning, Hang Seng is up nearly a percent and Nikkei and Shanghai are up about 0.3%. SGX Nifty is suggesting about 20 points higher start for our market.

In yesterday's report we had said that the immediate hurdle on the hourly chart is placed around 10710, with the stop-loss of which, trading shorts should be held on to.

Nifty soared 97 points to settle at 10715, taking out this hurdle. 10785, the top made last week, is the next hurdle to eye, upon decisive crossover of which, 10950 would be the next target.

On the way down, 10600, the bottom made last week, is the immediate support, upon breach of which, 10515 would be the next downside target. For the time being 10600-10785 is the immediate range, a crossover of which, on either side, is required for taking a fresh view on Nifty.