11170 CONTINUES TO BE UPSIDE TARGET; 10890 IMMEDIATE SUPPORT

11170 CONTINUES TO BE UPSIDE TARGET; 10890 IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 gained 0.4% and 0.1% respectively while Nasdaq ended flat on Friday. S & P 500 closed at its best level since early February.

Bank stocks however dipped after digesting earnings. J.P. Morgan Chase posted better-than-expected earnings and sales. Citigroup posted a stronger-than-expected profit but its revenue for the quarter missed. Wells Fargo’s earnings and revenue both missed.

European markets, except a 0.3% lower Spain, gained 0.1%-0.5%.

For the week, US indices gained 1.5%-2.3%. European markets rose 0.4%-1%. In Asia, Nikkei and Shanghai soared 3.7% and 3% respectively while Hang Seng was up 0.7%. These gains were on the back of easing of trade war concerns between US and China after China did not responded to tariffs on $200 billion worth of Chinese goods by the US.

AT HOME

Benchmark indices ended little changed after trading in a narrow range through the session. Sensex settled at 36541, down 7 points while Nifty lost 4 points to finish at 11018. BSE mid-cap and small-cap indices however tumbled 0.8% and 1.4% respectively. BSE Telecom and Realty indices tumbled 2% and 1.4% respectively, becoming top losers among the sectoral indices while Consumer Durable and Energy indices were the top gainers, up 0.9% and 0.8% respectively.

For the week, Sensex and Nifty gained 3.2% and 2.3% respectively.

FIIs net sold stocks worth Rs 1105 cr but net bought index futures and stock futures worth Rs 1459 cr and 517 cr respectively. DIIs were net buyers to the tune of Rs 872 cr.

Rupee appreciated 5 paise to end at 68.52/$.

Infosys reported mixed results. Constant currency revenue growth, at 2.3%, missed estimates while margins were in-line. Dollar revenue growh stood at 0.9%. Margins fell 100 bps to 23.7%. Net profit fell 2.1% to Rs 3610 cr. 

Company maintained FY19 constant currency revenue growth guidance at 6%-8% and margin guidance at 22%-24%.

India's fiscal deficit hit a 43 month high of USD 16.6 bn in June from $14.62 bn in May. Exports rose 17.6% yoy to $27.7 bn while imports surged 21.3% to $44.3 bn.

OUTLOOK

Today morning, Nikkei is shut while Hang Seng and Shanghai are down about 0.3% each. SGX Nifty is suggesting a flattish start for our market.

Just to reiterate, after Nifty achieved 10930 target, we have been working with next major target of 11171, the top made in January. Nifty, after touching a high of 11078 on Thursday, eased to close the week at 11018.

11171 continues to be upside target to eye. 10890 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

HUL will report its quarterly earnings today.