NIFTY NEARLY ACHIEVES 10770 TARGET; TRAIL STOP-LOSS TO 10625

NIFTY NEARLY ACHIEVES 10770 TARGET; TRAIL STOP-LOSS TO 10625

WORLD MARKETS

Dow fell 0.3% while S & P 500 and Nasdaq gained 0.2% and 0.9% respectively as Apple rose while Boeing and Pfizer fell.

Apple climbed 2.3% ahead of its quarterly earnings.

The ISM manufacturing index hit 57.3 in April.

Dollar index rose more than half a percent to 92.46, its highest level in nearly four months, ahead of the end of the Federal Reserve's May meeting.

Gold hit 2-month low as dollar rose.

European markets rose 0.2%-0.7%.

AT HOME

Benchmark indices gained nearly half a percent, extending the winning streak to third straight day. Sensex added 190 points to settle at 35160 while Nifty finished at 10739, up 47 points. BSE mid-cap and small-cap indices gained 0.9% and 0.6% respectively. BSE Realty and Capital Goods indices climbed 1.5% each, becoming top gainers among sectoral indices while Energy and Oil & Gas indices were the top losers, down 2% and 1.1% respectively.

FIIs net sold stocks and stock futures worth Rs 385 cr and 392 cr respectively but net bought index futures worth Rs 229 cr. DIIS were net buyers to the tune of Rs 262 cr.

Data released by finance ministry showed revenue mop-up from Goods and Services Tax (GST) touched Rs 1.03 crore in April, the highest ever since the implementation of the new indirect tax system from July 1,

The growth of India’s core industries slowed to a three-month low of 4.1% per cent in March from 5.4% in February as output of refinery products, fertilisers, steel and cement moderated.

Maruti posted 14.2% rise in April sales at 1.65 lakh units. M & M sales rose 19.3% to 45217 units. Tata Motors sold 34% higher vehicles at 17325 units. TVS Motor sales rose 24% to 3.05 lakh units. Escorts posted 26% rise at 6186 units. Eicher sales were up 27%.

Kotak Mahindra Bank posted 15% y-o-y rise in March quarter net profit at Rs 1124 cr. NII grew 18% to Rs 2580 cr. Loan book grew 25% to Rs 1.70 lakh cr. Asset quality improved with gross NPA ratio falling to 2.22% from 2.31% and net NPA ratio improving to 0.98% from 1.09%.

HDFC net profit jumped 39% to Rs 2846 cr, aided by Rs 294 cr gain in sale of subsidiaries HDFC Realty and HDFC Developers to Quikr India. NII grew 4% to Rs 3249 cr. Loan book grew 21% to Rs 3.59 lakh cr.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto 0.4% and SGX Nifty is suggesting about 30 points lower start for our market.

After Nifty achieved the 10700 target, we had given next target of 10770, which is the two-third retracement level of the entire 11171-9951 fall. Nifty, on Monday, touched a high of 10759, coming in very close to this target, before closing at 10739 and is set to open around 10700 today.

Once 10770 is taken out, next meaningful resistance as well as target to eye would be 11171, which was the top made in January.

Meanwhile, immediate support on the hourly chart has moved up to 10625, with the stop-loss of which, existing longs should be held on to.

At the end of its two-day meeting today, Fed is expected to hold interest rates steady, but will be on the lookout for signals on the central bank's views on inflation and the economy.

HCL Tech and Hero MotoCorp will report their quarterly earnings today.