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.