NIFTY ON TRACK TO ACHIEVE 10780 TARGET; 10440 IS THE IMMEDIATE SUPPORT

NIFTY ON TRACK TO ACHIEVE 10780 TARGET; 10440 IS THE IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 climbed 2.2% each while Nasdaq soared 2.9%, registering their best day since March, on the back of strong quarterly results.

Shares of Morgan Stanley, Goldman Sachs, Johnson & Johnson and UnitedHealth surged after posting better-than-expected earnings. Netflix reported after the bell and also beat the estimates. However Walmart slashed its fiscal 2019 earnings forecast, citing its Flipkart acquisition.

In data, job openings hit a record by surging above 7 million in August, according to the Labor Department.

Trump continued his criticism of the Federal Reserve, calling it his "biggest threat" as it was "raising rates too fast."

US crude rose 14 cents to $71.92 while Brent rose 64 cents to $81.42 a barrel on worries that crude supply from the Middle East could be disrupted by looming U.S. sanctions on Iran and growing tensions with top producer Saudi Arabia.

European markets gained 0.4%-2.2% with Italy on the top.

AT HOME

Sensex and Nifty gained 0.8% and 0.7% respectively, extending the winning streak to third straight day. Sensex added 297 points to settle at 35162 while Nifty finished at 10584, up 72 points. BSE mid-cap and small-cap indices climbed 1.1% and 1.7% respectively. All the BSE sectoral indices ended in green with Energy and Oil & Gas indices leading the tally, up 2% and 1.8% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 68 cr, 186 cr and 318 cr respectively. DIIs were net buyers to the tune of Rs. 295 cr.

Rupee appreciated 37 paise to end at 73.46/$.

Infosys' revenue beat estimates but margins missed expectations. Dollar revenue rose 7.7% q-o-q to $2921 mn while in rupee revenue rose 3.2% to Rs 20609 cr. Revenue, in constant currency terms, grew 4.2%. EBIT rose 7.9% to Rs 4894 cr and margin rose 3 bps to 23.75%. Company maintained FY19 constant currency revenue growth guidance at 6-8% and margin guidance at 22-24%.

Hero Motocorp's results were largely in-line with estimates. Net profit fell 3.4% y-o-y to Rs 976 cr while revenue was up 8.6% at Rs. 9091 cr. EBITDA fell 5.3% to Rs. 1378 cr and margin fell 220 bps to 15.2%.

OUTLOOK

Today morning, Asian markets are trading with gains of 1.1%-1.7% and SGX Nifty is suggesting about 100 points higher start for our market.

In yesterday's report we had said that once 10547 hurdle is taken out, 200-DMA, placed around 10780, would be the next major target to eye.

Nifty yesterday added 72 points to end at 10584, taking out the 10547 hurdle, and is set to open near 10700 today.

10780 continues to be upside target as well as resistance to eye.

Immediate support on the hourly chart is placed around 10440, with the stop-loss of which, trading longs should be held on to.

Reliance Industries will report its quarterly earnings today.