10138-10780 CONTINUES TO BE BROAD RANGE

10138-10780 CONTINUES TO BE BROAD RANGE

WORLD MARKETS

Dow gained 0.3% but S & P 500 ended flat and Nasdaq fell half a percent on Friday as Procter & Gamble surged while Facebook, Amazon and Netflix all pulled back.

Procter & Gamble shares surged 8.8%, their biggest since Oct. 28, 2008, after reporting better-than-expected earnings. Honeywell and Schlumberger also reported better-than-forecast profits. American Express, PayPal and Skechers all posted on Thursday earnings that topped analyst expectations.

Brent crude futures rose 43 cents or 0.5% to $79.66 a barrel. WTI crude futures settled 47 cents or 0.7% up at $69.13 a barrel.

In Europe, FTSE rose 0.3% but DAX and CAC lost 0.3% and 0.6% respectively.

For the week, Dow gained 0.4%, S & P 500 ended flat while Nasdaq fell 0.6%. In Europe, FTSE and DAX gained 0.8% and 0.3% respectively but CAC fell 0.2%. Asian markets fell between 0.7%-2.2%. , Brent crude was 0.3% lower while WTI fell nearly 3%.

AT HOME

Wednesday's weakness got extended as benchmark indices tumbled just under a percent and half on the last trading day of the week. Sensex settled 463 points lower at 34315 while Nifty finished at 10303, down 150 points. BSE mid-cap and small-cap indices fell 1.1% and 1.3% respectively.

Except a 0.4% and 0.1% higher FMCG and Metal indices respectively, all the BSE sectoral indices ended in red with Energy and IT indices leading the losses, down 2.8% and 2.6% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 618 cr, 438 cr and 1664 cr respectively. DIIs were net sellers to the tune of Rs 2 cr.

Rupee appreciated 28 paise to end at 73.32/$.

For the week, Sensex and Nifty fell 1.2% and 1.6% respectively.

HDFC Bank reported strong quarterly numbers with in-line with estimated NII and profit growth along with stable asset quality. Net profit as well as NII rose 20.6% each to Rs 5005 cr and 11763 cr respectively. Gross NPA ratio was unchanged at 1.33% sequentially while net NPA ratio improved to 0.4% from 0.41%.

Ultratech Cement posted weaker-than-expected quarterly numbers. Net profit fell 9.4% y-o-y to Rs 391 cr while revenue were up 21% at Rs 7771 cr. EBIDTA fell 6.7% to Rs 1208 cr and margin fell 460 bps to 15.5%.

OUTLOOK

Today morning, Shanghai and Hang Seng are up 1.4% and 0.8% respectively but Nikkei is down 0.5%. SGX Nifty is suggesting a flattish start for our market.

Nifty, after coming in the vicinity of 200-DMA placed around 10780 by touching a high of 10710 Wednesday, reversed sharply to touch a low of 10250 on Friday before closing at 10303.

10138, the bottom made on 11th October, continues to be important immediate support to eye. Below 10138, 9951, the bottom made in March, would be the next crucial support to eye.

On the way up, 10710 is the top made during the week, 10760 is the 38.2% retracement level of the entire 11760-10138 fall and 200-DMA is placed around 10780, making 10710-10780 an important resistance zone, a crossover of which is required for a fresh upmove.

Asian Paints and Hindustan Zinc will report their quarterly earnings today.