NIFTY MOVES TOWARDS 11400 TARGET; TRAIL STOP-LOSS TO 11200

NIFTY MOVES TOWARDS 11400 TARGET; TRAIL STOP-LOSS TO 11200

WORLD MARKETS

Dow and S & P 500 fell 0.6% each while Nasdaq tumbled 1.4% on the back of profit booking in technology shares. For Nasdaq, it was the third straight day of fall.

Facebook, Amazon and Google-parent Alphabet saw cuts in the vicinity of 2% while Netflix plunged 5.7%.

Treasury yields rose with the 10-year yield hitting 2.99%, its highest level since June 13.

US crude rose 2.1% to settle at $70.13, boosted by signs of tight supply

European markets saw cuts of upto half a percent with DAX leading the losses.

AT HOME

Benchmark indices gained four tenth of a percent to hit yet another record high. Sensex added 158 points to settle at 37494 while Nifty finished at 11320, up 41 points. BSE mid-cap and small-cap indices rose 0.3% and 0.6% respectively. BSE Telecom index soared 2.8%, becoming top gainer among the sectoral indices, followed by 1.3% higher Energy index. IT and Capital Goods indices were the top losers, down 0.7% and 0.2% respectively.

FIIs net sold stocks and index futures worth Rs 234 cr and 242 cr respectively but net bought stock futures worth Rs 1004 cr. DIIs were net buyers to the tune of Rs 49 cr.

Rupee depreciated 2 paise to end at 68.67/$.

Axis Bank reported better-than-expected numbers on all counts. Net profit fell 46% yoy to Rs 701 cr. NII rose 12% to Rs 5167 cr. Gross NPA ratio improved to 6.52% from 6.77% qoq and NEt NPA ratio fell to 3.09% from 3.4%. Slippages were down 74% qoq at Rs 4337 cr and non-watchlist slippages were the lowest ever.

Tech Mahindra’s revenue and margin beat estimate while profit was in-line. Dollar revenue fell 1.6% qoq to $1224 mn while rupee revenue rose 2.8% to Rs 8276 cr. EBIT was down 3.4% at Rs 1076 cr and margins were down 80 bps at 13%.

HDFC reported 54% growth in June quarter net profit at Rs 2190 cr. NII rose 20% to Rs 2890 cr. Gross NPA ratio stood at 1.18%, up from 1.11% q-o-q while Net bad loan ratio in the individual loan portfolio was 0.66% and 2.32% for the non-individual portfolio. Net interest margin declined to 3.5% from 4%.

OUTLOOK

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

After Nifty achieved 10230 target, we have been working with next target of 10400. Nifty yesterday touched a high of 11328 before closing at 11320, moving towards this target.

10400 continues to be next upside target to eye. Immediate support on the hourly chart has moved up to 11200, with the stop-loss of which, trading longs should be held on to.

Tata Motors and VEDL will report their quarterly earnings today.

NIFTY ACHIEVES 11230 TARGET; TRAIL STOP-LOSS TO 11150

NIFTY ACHIEVES 11230 TARGET; TRAIL STOP-LOSS TO 11150

WORLD MARKETS

US indices fell 0.3%-1.5% with the Nasdaq leading the losses as Tech's declined offset a strong economic reading of the U.S. economy for the second quarter.

Intel dropped 8.5% after announcing delays on its next generation chips. Twitter nosedived 20% after it said its number of monthly active users fell.

U.S. economy grew last quarter at 4.1%, its fastest rate since the third quarter of 2014.

US crude fell 1.3% to settle at $68.69.

European markets gained 0.4%-0.9%. France's economy grew by 0.2 percent in the second quarter of the year.

For the week, Dow and S & P 500 gained 1.6% and 0.6% respectively but Nasdaq fell 1.1%. In Europe, FTSE gained 0.3% while CAC and DAX soared 2.1% and 2.4% respectively. In Asia, Hang Seng and Shanghai climbed 2% and 1.6% respectively while Nikkei was little changed.  WTI oil fell for the fourth week but Brent rose 1.7%, the first gain in four weeks.

AT HOME

Benchmark indices soared 1% each, hitting yet another record high. Sensex surged 352 points to settle at 37336 while Nifty finished at 11278, up 111 points. BSE mid-cap and small-cap indices also gained 1% and 0.9% respectively. Except a marginally lower IT index, all the BSE sectoral indices ended in green with FMCG and Consumer Durable indices leading the tally, up 2% and each.

FIIs net bought stocks, index futures and stock futures worth Rs 2454 cr, 712 cr and 657 cr respectively. DIIs were net sellers to the tune of Rs 2716 cr.

Rupee appreciated 1 paise to end at 68.65/$.

For the week, Sensex and Nifty climbed 2.3% and 2.4% respectively. Nifty mid-cap and small-cap indices surged nearly 4% and 5% respectively, marking the best weekly gain in nearly four months.

Reliance Industries reported steady numbers as strong petchem offset weaker refining. Net profit rose 1.4% q-o-q to Rs 8820 cr. Revenue rose 8.5% to Rs 91159 cr. Operating profit grew 12.9% to Rs 15154 cr and margins expanded 60 bps to 16.6%. Gross Refining Margins fell from $11/bbl to $10.5. Petchem EBIT hit record high and margin expanded 270 bps to 19.5%. Reliance Jio reported lower than expected, 1.8% drop in ARPU at Rs 134.5. Retail EBIT was up 12.4% and revenue was up 7%.

ICICI Bank reported a net loss of Rs 120 cr. Gross NPA as a percentage of gross advances improved to 9.65% from 9.90% while Net NPA ratio improved to 4.67% from 5.43%. Gross slippages were down 74.4% to Rs 4036 cr but slippages from non-watchlist were elevated at Rs 3651 cr. Net-interest margin fell to 3.19% from 3.24%.

HCL Tech's revenue missed estimated, margins were in-line while PAT, aided by other income and lower tax, beat estimate. Constant currency revenue growth stood at 2.7%. Margins were flat at 19.66% as against 19.6%. PAT was up 8%. Company maintained FY19 constant currency revenue growth guidance at 9.5-11.5% and EBIDTA margin at 19.5-20.5%.

OUTLOOK

Today morning, Hang Seng and Shanghai are little changed while Nikkei is down about half a percent. SGX Nifty is suggesting about 15-20 points higher start for our market.

Readers would recall that after Nifty took out 11078 hurdle, we had given targets of 11171, 11230 and 11400. Nifty, on Friday, soared 111 points to settle at 11278, achieving 11230 target and moving towards 11400.

11400 continues to be next target to eye. Immediate support on the hourly chart has moved up to 11150, with the stop-loss of which, trading longs should be held on to.

AXIS Bank, HDFC and Tech Mahindra will report their quarterly earnings today.

NIFTY ACHIEVES 11171 TARGET; TRAIL STOP-LOSS TO 11000

NIFTY ACHIEVES 11171 TARGET; TRAIL STOP-LOSS TO 11000

WORLD MARKETS

Dow gained 0.4% while S & P 500 and Nasdaq fell 0.3% and 1% respectively. Nasdaq posted its worst day in a month as facebook shares plunged 19% on the back of poor quarterly results.

Facebook's negative results offset strong earnings from Comcast, Qualcomm and Advanced Micro Devices.

Industrials rose amid positive news on trade as Trump announced that the U.S. and the European Union had initiated a "new phase" within their relationship, explaining how both regions would start collaborating in order to lower tariffs and avoid a potential trade war.

US crude rose 31 cents to settle at $69.61 a barrel.

Euro fell after the European Central Bank kept its policy unchanged.

In Europe, FTSE inched up 0.1% while other markets climbed 0.8%-1.8% with DAX on the top.

AT HOME

Benchmark indices ended higher by about a third of a percent, hitting fresh record intraday as well as closing high. Sensex added 126 points to settle at 36985 while Nifty finished at 11167, up 35 points. BSE mid-cap and small-cap indices rose 0.8% and 0.3% respectively. BSE Utilities index soared 1.7%, becoming top gainer among the sectoral indices, followed by 1.4% higher Power index and Bankex. Metal and IT indices were the top losers, down 0.7% each.

FIIs net bought stocks worth Rs 2454 cr while DIIs were net sellers to the tune of Rs 2716 cr.

Rupee appreciated 12 paise to end at 68.66/$.

ITC reported largely in-line with estimated topline and bottomline while margins came in better. Net profit rose 10.1% to Rs 2819 cr while revenue was up 7.6% to Rs 10707 cr. EBITDA rose 12.2% to Rs 4202 cr and margin expanded 170 bps to 39.3%.

Bharti Airtel posted 17.4% q-o-q rise in net proit at Rs 97.3 cr while revenue was up 2.3% at Rs 20080 cr. EBITDA fell 2.8% to Rs 6837 cr and margins contracted 180 bps to 34%.

Maruti reported in-line revenue while operational and bottombline performance was a miss. Net profit rose 26.9% y-o-y to Rs 1975 cr while revenue rose 28% to Rs 22459 cr. EBITDA surged 43.8% to Rs 3351 cr and margin expanded 160 bps to 14.9%. SBI soared 6.4%, becoming top Nifty gainer, followed by 3.7% higher Eicher Motors. Yes Bank and Maruti were the top losers, down 4% and 3.8% respectively. BSE advance-decline ratio stood at 1:1.1.

Yes Bank reported better-than-expected bottomline, but stock slipped on weakening NIM and asset quality as slippages rose and provisions jumped. Net profit rose 30.5% to Rs 1260 cr y-o-y and NII was up 22.7% at Rs 2219 cr. Gross NPA ratio rose to 1.31% from 1.28% while net NPA ratio improved to 0.59% from 0.64% q-o-q. Gross slippages rose to Rs 560 cr from 380 cr q-o-q. Net interest margin, at 3.3%, hit a 12-quarter low. Provisions stood at Rs 626 cr, a growth of 119% y-o-y and 56% q-o-q.

Dr Reddy reported better-than-expected results on all counts. Net profit rose more than seven-fold to Rs 456 cr while revenue was up 12% at Rs 3721 cr. EBITDA was up 140% to Rs 807 cr and margins expanded 1170 bps to 21.7%.

OUTLOOK

Today morning, Nikkei is up 0.4% while Shanghai and Hang Seng are down 0.2% and 0.4% respectively. SGX Nifty is suggesting about 40 points higher start for our market.

Just to reiterate, we had given targets of 11171 followed by 11230 after 11078 hurdle was taken out. Nifty yesterday touched a high of 11185 before closing at 11167, achieving 11171 target and vindicating our view.

11230 continues to be next target above which 11400 would be the next level to eye.

Meanwhile, immediate support on the hourly chart has moved up to 11100, with the stop-loss of which, trading longs should be held on to.

Reliance Industries, HCL Tech, BoB and ICICI Bank will report their quarterly earnings today. 

NIFTY SET TO ACHIEVE 11171 TARGET; TRAIL STOP-LOSS TO 11050

NIFTY SET TO ACHIEVE 11171 TARGET; TRAIL STOP-LOSS TO 11050

WORLD MARKETS

US indices gained 0.7%-1.2% with Nasdaq leading the tally and also hitting a record high.

Trump, after meeting with European Commission President Jean-Claude Juncker, said that the US and EU would start negotiations immediately on a number of areas that include working toward "zero tariffs" on industrial goods, and further cooperation on energy issues.

US oil jumped 1.1% to settle at $69.30 a barrel on the back of a big drop in US crude inventories. Brent rose 49 cents to $73.93.

European markets fell 0.1%-1% with Italy leading the losses.

Facebook reported after the bell and posted weaker-than-expected daily active users for last quarter and said revenue growth would decline sequentially in the second half of this year. The stock was down more than 20% in afterhours trading.

AT HOME

Benchmark indices ended little changed after trading in a narrow range through the session. Sensex settled at 36858, up 33 points while Nifty lost 2 points to finish at 11132. BSE mid-cap index fell 0.1% while small-cap index rose 0.2%. BSE Power and Realty indices tumbled 1.5% and 1.3% respectively, becoming top losers among the sectoral indices while Metal and Finance indices were the top gainers, up 0.8% and 0.5% respectively.

FIIs net sold stocks and index futures worth Rs 1196 cr and 207 cr respectively but net bought stock futures worth Rs 3 cr. DIIs were net buyers to the tune of Rs 98 cr.

Rupee appreciated 16 paise to end at 68.78/$.

L & T's results were an all-round beat. Net profit surged 36% to Rs 1215 cr while revenue was up 18.8% at Rs 28283 cr. EBITDA climbed 40.4% to Rs 2913 cr and margins expanded 160 bps to 10.3%. Consolidated order book stood at 2.71 lac cr as on June 30. Company maintained its FY19 order inflow guidance at 10%-12% and revenue guidance at 12-15%.

Hero MotoCorp missed street estimates on all counts. Net profit fell 0.5% y-o-y to Rs 909 cr. Revenue rose 10.4% to Rs 8810 cr, EBITDA was up 6.3% at Rs 1377 cr and margin fell 60 bps to 15.6%. Realisation per unit fell 3.3% to Rs. 41853.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 35 points higher start for our market.

At the risk of repeating, we have been positive on Nifty since immediate hurdle of 10730 was taken out on 4th July and have been advising holding on to long positions with a trailing stop-loss. On last count, when 11078 hurdle was taken out, we had given upside targets of 11171 followed by 11230.

Nifty yesterday ended at 11132 and is likely to open near the 11171 target today. As mentioned above, upon crossover of 11171, 11230 would be the next target to eye.

Immediate support on the hourly chart has moved up to 11050, with the stop-loss of which, trading longs should be held on to.

ITC, Maruti, Bharti Airtel, Dr Reddy and Yes Bank will report their quarterly earnings today.

SENSEX, NIFTY HIT RECORD CLOSING HIGH; BROADER MARKET SOAR

SENSEX, NIFTY HIT RECORD CLOSING HIGH; BROADER MARKET SOAR

WORLD MARKETS

Dow and S & P 500 rose 0.8% and 0.5% respectively while Nasdaq, after gaining nearly a percent at the open, slipped to end flat.

Google-parent Alphabet jumped 4% after the company reported expectations-topping results after the market close on Monday.

Earlier Shanghai Composite surged 1.5% after China said it would use fiscal action to support its economy. The offshore yuan fell to a 13-month low.

WTI oil rose nearly a percent.

European markets gained 0.5%-1.2%. A purchasing managers index (PMIs) for the euro area came in at 54.3 in July from 54.9 in June.

AT HOME

Sensex and Nifty gained 0.3% and 0.45% respectively to end at record closing high. Sensex added 106 points to settle at 36825 while Nifty finished at 11134, up 50 points. BSE mid-cap and small-cap indices soared 1.5% and 1.8% respectively. Except a 0.1% lower Bankex and 0.01% lower Energy index, all the BSE sectoral indices ended in green with Basic Material and Metal indices leading the tally, up 3.7% and 2.9% respectively.

FIIs net bought stocks and stock futures worth Rs 104 cr ad 472 cr respectively but net sold index futures worth Rs 35 cr. DIIs were net buyers to the tune of Rs 514 cr.

Rupee ended at 68.94/$, depreciating 9 paise compared to previous close.

Asian Paints reported in-line with estimated topline but operational performance and bottomline beat estimates. Revenue rose 15% to Rs 4390 cr. EBITDA surged 31.4% to Rs 874.5 cr, margins expanded by 250 bps to 19.9% and profit was up 29.6% at Rs 571 cr.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.1%-0.8% and SGX Nifty is suggesting a marginally higher start today.

After crossover of 11078 hurdle, we have been working with upside targets of 11171 and 11230 respectively. Yesterday, Nifty, after touching a high of 11143, closed at 11134 and

11171 continues to be immediate upside target above which 11230 would be the next target to eye.

Immediate support on the hourly chart has moved up to 11020, with the stop-loss of which, existing longs should be held on to.

L & T and Hero MotoCorp will report their quarterly earnings today.

NIFTY BREAKS OUT OF 6-DAY CONSOLIDATION; TRAIL STOP-LOSS TO 11000

NIFTY BREAKS OUT OF 6-DAY CONSOLIDATION; TRAIL STOP-LOSS TO 11000

WORLD MARKETS

Dow ended marginally in the red while S & P 500 and Nasdaq gained 0.2% and 0.3% respectively with the technology sector hitting an all-time high.

Bank shares rose sharply on the back of higher interest rates as the benchmark 10-year Treasury yield traded at 2.95% after the yield on the 10-year Japanese note climbed to its highest level since February

Google-parent Alphabet reported better-than expected earnings after the bell.

At a G-20 meeting in Argentina over the weekend, finance leaders from the world’s biggest economies called for more dialogue to help prevent geopolitical and trade tensions from negatively impacting global economic growth. The meeting however, failed to reach a significant agreement on trade.

European markets fell 0.1%-0.9% with Italy losing the most.

AT HOME

After trading in a narrow range, Sensex and Nifty saw a steep upmove in late noon trade to end with gains of 0.6% and 0.7% respectively, with Sensex hitting a record intraday and closing high while Nifty closed at the highest level since 29th January. Sensex gained 22 points to settle at 36719 while Nifty finished at 11085, up 75 points. BSE mid-cap and small-cap indices soared 1.3% and 0.9% respectively. Except a 0.4% lower Energy index, all the BSE sectoral indices ended in green with Telecom and FMCG indices leading the tally, up 2.5% and 2.3% respectively.

FIIs net bought stocks worth Rs 259 cr but net sold index futures and stock futures worth Rs 604 cr and 18 cr respectively. DIIs were net buyers to the tune of Rs 125 cr.

Rupee depreciated 1 paise to end at 68.85/$.

UPL soared after the company, on Friday after market hours, announced acquisition of Arysta LifeScience Inc. for approximately $4.2 billion.

Hero MotoCorp and Bajaj Auto plunged amid worries that Bajaj Auto Ltd.’s push to gain a bigger slice of the low-cost market will increase competition and hurt industry margins.

OUTLOOK

Today morning, Hang Seng and Nikkei are up 0.4% each while Shanghai is up 0.6%. SGX Nifty is suggesting a flattish start for our market.

While Nifty was in a consolidation mode after hitting a high of 11078 on 12th July, we had maintained the positive bias and had asked holding on to long positions with the stop-loss of 10890.

Nifty yesterday soared 75 points to settle at 11085, resolving this 6-day consolidation on the upside.

11171, the top made in January, is the next target above which 11230 would be the subsequent target.

Immediate support on the hourly chart has moved up to 11000, with the stop-loss of which, trading longs should be held on to.

11078-10890 CONTINUES TO BE IMMEDIATE RANGE

11078-10890 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices ended marginally in the red on Friday as strong earnings offset Trump’s comments to increase tariffs on China.

Microsoft reported better-than-expected earnings Thursday after the close and issued strong revenue guidance. Honeywell too posted stronger-than-expected earnings and revenue.

U.S. dollar slumped 0.7% to 94.48 on comments from President Trump that China and Europe are manipulating their currency and the Federal Reserve is hurting economic growth by raising interest rates. Trump, in a media interaction, also said he is ready to put tariffs on every Chinese good coming to the U.S. if necessary.

Trump also went after the Federal Reserve for a second straight day by criticizing Fed for hiking interest rate via tweeter.

US crude rose $1 or 1.4% to settle at $70.46 a weakening dollar and lower expected August oil exports from Saudi Arabia.

European markets fell 0.1%-1% with DAX leading the losses. Auto stocks were the worst-performers amid reports that the European Commission is preparing retaliatory tariffs in case the U.S. moves ahead with duties on European carmakers.

For the week, Nasdaq fell 0.1%, S&P 500 ended flat while the Dow rose 0.2% to extend the winning streak to third-straight week. In Europe, CAC fell 0.6% while DAX and FTSE gained 0.2% each.  In Asia, Hang Seng and Shanghai fell 1.1% and 0.1% respectively while Nikkei added 0.4%.

AT HOME

Sensex and Nifty gained 0.4% and 0.5% respectively, breaking two-day losing streak. Sensex added 145 points to settle at 36496 while Nifty finished at 11010, up 53 points. BSE mid-cap and small-cap indices rose 0.7% and 0.4% respectively. BSE IT and Healthcare indices gained 1.5% and 1.1% respectively, becoming top gainers among the sectoral indices while Oil & Gas and Metal indices were the top losers, down 0.6% each.

FIIs net bought stocks and stock futures worth Rs 310 cr and 594 cr respectively while net sold index futures worth Rs 985 cr. DIIs were net sellers to the tune of Rs 51 cr.

Rupee appreciated 20 paise to end at 68.84/$.

Wipro reported muted but ahead of market estimated first quarter numbers. Dollar revenue fell 1.7% q-o-q to $2026.5 mn while constant currency growth stood at 0.1%. Rupee revenue rose 2.1% to Rs 13700 cr. EBIT was up 24% at Rs 2397 cr and margin expanded 280 bps to 17.2%. Company guided for a revenue growth guidance of 0.3%-2.3% for Q2.

Bajaj Auto's numbers missed street estimates on all the counts. Net profit rose 20.7% to Rs 1115 cr while revenue rose 27% to Rs 7419 cr. EBIDTA rose 36.5% to Rs 1281 cr while margin remained flat at 17.3%.

HDFC Bank reported lower-than-expected 18.2% rise in Q1 net profit at Rs 4601 cr, hit by a mark-to-market loss of Rs 391 cr in the bond portfolio. NII rose 15.4% to Rs 10814 cr. Asset quality remained largely stable with GNPA at 1.33% as against 1.3% q-o-q and Net NPA ratio unchanged at 0.41%.

GST Council on Saturday decided to slash rates on over 50 goods, including washing machines, refrigerators, vacuum cleaners, paints, footwear, ethanol, cosmetics, and sanitary napkins. The council also allowed businesses with turnover of up to Rs 5 crore to file quarterly returns.

OUTLOOK

Today morning, Hang Seng is modestly higher while Nikkei and Shanghai are down 1.2% and 0.3% respectively. SGX Nifty is suggesting a flattish start for our market.

After hitting a high of 11078 on 12th July, last week was that of a consolidation as Nifty traded within previous week's range by touching a high of 11078 and low of 10925 and finally settling at 11010.

10890 continues to be immediate support, with the stop-loss of which, trading longs should be held on to. 11078 continues to be immediate upside hurdle, above which 11171, the top made in January, would be the next target to eye.

11078-10890 CONTINUES TO BE IMMEDIATE RANGE

11078-10890 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices fell 0.4%-0.5% amid U.S. President Trump's criticism of the Federal Reserve.

Trump, in a media interaction, said that he was "not thrilled" with the central bank hiking interest rates.

Dollar index, after touching a one-year high of 95.65, eased to 95.16 on Trump's comments. 10-year treasury yield slipped to 2.84% from a high of 2.90%. Bank shares fell broadly as interest rates declined.

IBM reported earnings and revenue that surpassed expectations. American Express posted a profit that was just above estimates, while sales came in slightly below estimates. Ebay posted revenue and guidance that disappointed while earnings topped estimates.

US crude rose 1% to settle at $69.46

European Union Trade Commissioner said the EU is making a list of goods it could target as a way to retaliate against potential tariffs on European cars by the US.

European markets, except 0.1% higher FTSE, fell 0.3%-0.6%. Basic resources were down the most, tracking lower metal prices, as worries about the Chinese economy persist.

AT HOME

Sensex and Nifty fell 0.1% and 0.2% respectively to extend losing streak to second day. Sensex lost 22 points to settle at 36351 while Nifty finished at 10957, down 23 points. BSE mid-cap and small-cap and small-cap indices fell 0.6% and 1% respectively. BSE Capital Goods and Healthcare indices tumbled 1.8% and 1.2% respectively, becoming top losers among the sectoral indices while Consumer Durable and Energy indices were the top gainers, up 1% and 0.6% respectively.

FIIs net sold stocks worth Rs 316 cr but net bought index futures and stock futures worth Rs 1080 cr and 110 cr respectively. DIIs were net buyers to the tune of Rs 470 cr.

Rupee plunged 43 paise to end at lifetime low of 69.05/$.

Hindalco fell on news reports that it is likely to acquire Aleris for USD 2.5 billion and the company and its Canadian arm, Novelis, is in process of raising debt for the said deal.

Kotak Mahindra Bank plunged after net profit and NII growth missed estimates. Net profit rose 12.3% to Rs. 1025 cr. NII grew by 15%, the slowest in 8 quarters, to Rs 2583 cr. Asset quality remained stable with Gross NPA ratio improving to 2.17% from 2.22% q-o-q and Net NPA ratio improving to 0.86% from 0.98%.

Bajaj Finance reported better-than-expected 83% growth in net profit at Rs 833.7 cr while NII was up 23.5% at Rs 2578 cr. NII rose 46% to Rs 2578 cr. Asset quality remained stable with gross non-performing assets (NPA), as a percentage of total loans, falling 9 basis points sequentially to 1.39%. Net NPA ratio, however, rose marginally to 0.44% from 0.38%.

OUTLOOK

Today morning, Main Asian markets are trading with cuts of 0.3%-0.4%. SGX Nifty is suggesting about 25 points lower start for our market.

After hitting a high of 11078 last week, Nifty has been in a consolidation mode. As we have been mentioning, 10890 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

11078 continues to be immediate hurdle, upon crossover of which, 11178 would be the next target to eye.

Lok Sabha will today debate and vote on the "No-Confidence motion" moved by the opposition. As against 268 votes required to win the motion, BJP as 305 certain votes, which should help it sail easily.

Bajaj Auto and Wipro will report their quarterly earnings today.

NIFTY RETREATS FROM 11078 HURDLE; 10890 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY RETREATS FROM 11078 HURDLE; 10890 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

Nasdaq ended flat while Dow and S & P 500 gained 0.3% and 0.2% respectively, with the Dow extending the winning streak to fifth straight day, helped by strong quarterly results from Morgan Stanley and rail transport company CSX.

Morgan Stanley reported better-than-expected earnings and revenue, boosted by strong trading and investment banking revenue. CSX also posted stronger-than-forecast profits and sales.

Federal Reserve Chairman Jerome Powell mostly reinforced his upbeat view on the U.S. economy in his second testimony to congress in the week.

Trump said the U.S. could "do a deal separately" with Mexico and Canada, raising questions over the fate of the North American Free Trade Agreement (NAFTA).

U.S. housing starts fell 12% in June to a nine-month low. Mortgage applications also fell 2.5% last week.

US crude rose 1% to $68.76. Brent gained nearly 1% to $72.84.

In Europe, except a marginally lower Italy, other markets gained 0.4%-0.8%.

AT HOME

After gaining more than half a percent in the initial trade, Sensex and Nifty fell sharply in the noon trade to end with cuts of 0.4% and 0.2% respectively. Sensex settled at 36373, down 146 points while Nifty lost 27 points to finish at 10980. BSE mid-cap and small-cap indices tumbled 1.3% and 1% respectively. Except 1.1% and and 0.4% higher Oil & Gas and Energy indices respectively, all the BSE sectoral indices ended in red with Metal index leading the tally, down 3.1%, followed by 2.4% lower Realty index.

FIIs net bought stocks and index futures worth Rs 96 cr and 358 cr respectively but net sold stock futures worth Rs 602 cr. DIIs were net buyers to the tune of Rs 111 cr.

Rupee depreciated 17 paise to end at 68.62/$.

Ultratech reported in-line with estimated revenue and profit number while operating performance was mildly above estimates. Net profit fell 33% y-o-y to Rs 598 cr while revenue rose 30.6% to Rs 8655 cr. EBIDTA rose 4% to Rs 1627 cr and margin contracted 474 bps to 18.8%.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.1%-0.4% and SGX Nifty is suggesting about 30 points higher start for our market.

In yesterday's report we had said that 11078, the top made last week, is the immediate hurdle, above which 11171, the top made in January, would be the next target to eye.

Nifty, after touching a high of 11076 in the initial trade, slipped to end at 10980, and is set to open above 11000 today.

11078 continues to be immediate hurdle, upon crossover of which, 11171 would be the next target as mentioned above.

Meanwhile, 10890 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

Kotak Mahindra Bank and Bajaj Finance will report their quarterly earnings today.