NIFTY ACHIEVES 10930 TARGET; TRAIL STOP-LOSS TO 10810

NIFTY ACHIEVES 10930 TARGET; TRAIL STOP-LOSS TO 10810

WORLD MARKETS

Dow and S & P 500 gained 0.6% and 0.4% respectively while Nasdaq ended flat as earnings season kicked off. Dow extended the winning streak to fourth straight day.

Pepsico surged 4.8% after posting better-than-expected earnings.

European markets, except a 0.4% lower Spain, gained upto 0.7%.

US oil rose 26 cents to settle at $74.11.

AT HOME

Benchmark indices soared 0.8% each with Sensex and Nifty closing at the highest level since 29th January and 1st February respectively. Sensex soared 305 points to settle at 36240 while Nifty finished at 10947, up 94 points. BSE mid-cap and small-cap indices climbed 1% each. Except a 0.1% lower Healthcare index, all the BSE sectoral indices ended in green with Energy index leading the tally, up 2%, followed by 1.8% higher Realty and Telecom indices.

FIIs net sold stocks worth Rs 21 cr but net bought index futures and stock futures worth Rs 1771 cr and 295 cr respectively. DIIs were net buyers to the tune of Rs 294 cr.

Rupee depreciated 11 paise to end at 68.83/$.

TCS reported better-than-expected earnings with net profit up 6.3% q-o-q and 15.8% y-o-y at Rs 7340 cr. Dollar revenue rose 1.6% to USD 5051 mn while rupee revenue was up 6.8% at Rs 34261 cr. Constant currency revenue growth at 4.1% was the highest in last 15 quarters. EBIDTA rose 5.3% to Rs 8578 cr while margin fell 36 bps to 25.04%.

Indusind Bank reported in-line with estimated numbers for the June quarter. Net profit rose 24% y-o-y to Rs 1036 cr and NII was up 19.6% at Rs 2122 cr. Asset quality was stable with Gross NPA ratio improving 2 bps q-o-q to 1.15% and unchanged Net NPA ratio at 0.51%. Provisions were up 4.3% at Rs 350 cr. Slippages stood at Rs 475 cr as against Rs 860 cr.

OUTLOOK

The U.S. government has released a list of $200 billion worth of Chinese goods to be hit with 10% tariffs. Owing to this news, Shanghai and Hang Seng are down nearly 2% and Nikkei is off 1.7%. US futures are down about a percent. SGX Nifty is suggesting about 25 points lower start for our market.

Readers would recall that after Nifty took out the 10745 hurdle, we had given first target of 10840 followed by 10900-10930. Nifty yesterday touched a high of 10957 before closing at 10947, achieving 10930 target and vindicating our view.

Having taken out 10930 hurdle decisively, next major target as well resistance to eye would be 11171, the highest high we have seen so far, that was made on 29th January.

Meanwhile, immediate support on the hourly chart has moved up to 10810, with the stop-loss of which, trading longs should be held on to.