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.