NIFTY HOLDS 10138 SUPPORT; 10408 IS THE IMMEDIATE HURDLE

NIFTY HOLDS 10138 SUPPORT; 10408 IS THE IMMEDIATE HURDLE

WORLD MARKETS

US indices, after falling more than 2% in the initial trade, recovered sharply through the session to end with cuts of just 0.4%-0.6%.

Initial fall was attributed to weak results from Caterpillar and 3M while recovery was led by McDonald's, which rose more than 6% on strong earnings

US crude plunged 4.2% to $66.43 and Brent fell 4.6% to $76.13 a barrel, pressured by weakness in the US stock market and vows by top oil exporter Saudi Arabia to meet the demands of the world's oil consumers.

European markets fell 0.9%-2.2% with DAX leading the losses. The European Commission told Italy that it must make revisions to its draft budget proposal. Italy's Deputy Prime Minister responded that his country could not continue with past policies that enforced low fiscal spending.

AT HOME

Benchmark indices ended with cuts of nearly a percent, extending the losing streak to fourth straight day and closing at fresh six-month low. Sensex lost 287 points to settle at 33847 while Nifty finished at 10146, down 98 points. BSE mid-cap and small-cap indices fell 0.9% and 1.2% respectively.  BSE IT and Teck indices tumbled 2.8% and 2.5% respectively, becoming top losers among sectoral indices while Realty and Power indices were the sole gainers, up 0.4% and 0.1% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 340 cr, 577 cr and 191 cr respectively. DIIs were net buyers to the tune of Rs 116 cr.

Rupee ended unchanged at 73.56/$.

Ambuja Cement reported mixed set of numbers. Revenue rose 12.6% y-o-y to Rs 2614 cr, margins were down to 13.7% from 15.22% and PAT fell 34% to Rs 179 cr. Volume growth stood at 9%.

HCL Tech reported largel in-line with estimated numbers. Dollar revenue grew 2.1% q-o-q while constant currency growth stood at 3%. Margins improved 30 bps. The company maintained its FY19 revenue growth guidance at 9.5%-11.5% and margin guidance at 195%-20.5%.

OUTLOOK

Today morning, SGX Nifty is suggesting about 70 points higher start for our market.

In yesterday's report we had reiterated the view that 10138 cotinues to be important immediate support, upon decisive breach of which 9951, the bottom made in March, would be the next crucial support to eye.

Nifty, after touching a low of 10102, recovered to end at 10146, holding the 10138 support on closing basis, and is set to open around 10200 today.

10408, the top made on Monday, is the immediate resistance to eye.

10102, the low made yesterday, is now the immediate support below which 9951 would be the crucial support to eye.

Kotak Mahindra Bank, Bajaj Auto and Wipro will report their quarterly earnings today.