NIFTY REBOUNDS FROM 34-DMA SUPPORT; 10945 IS IMMEDIATE HURDLE

NIFTY REBOUNDS FROM 34-DMA SUPPORT; 10945 IS IMMEDIATE HURDLE

WORLD MARKETS

Dow ended marginally in the red while S & P 500 and Nasdaq gained 0.1% and 0.7% respectively amid lingering concern over U.S.-China trade negotiations.

U.S. Commerce Secretary Wilbur, in a media interaction, said that the U.S. is "miles and miles" from a trade deal with China, adding the two countries have "lots and lots of issues."

Corporate earnings were good. American Airlines, JetBlue and Texas Instrument, all posted better-than-expected earnings.

Weekly jobless claims fell to 199,000 last week, their lowest in 49 years.

US crude rose 1% to $53.13 a barrel but Brent was down 2 cents at $61.12.

European markets, except 0.4% lowr FTSE, gained 0.5%-0.8%. European Central Bank left key rates unchanged at its policy meeting.

AT HOME

Benchmark indices gained a fifth of a percent, breaking two-day losing streak. Sensex added 86 points to settle at 36195 while Nifty finished at 10849, up 18 points. BSE mid-cap and small-cap indices fell 0.2% and 0.6% respectively.  BSE Realty index soared 2%, becoming top gainer among the sectoral indices, followed by 0.9% higher Energy index. Telecom index tumbled 2%, becoming top loser, followed by 1% lower Industrial index.

FIIs net sold stocks and index futures worth Rs 94 cr and 511 cr respectively but net bought stock futures worth Rs 571 cr. DIIs were net buyers to the tune of Rs 390 cr.

Rupee appreciated 26 paise to end at 71.07/$.

Yes Bank's net profit missed estimates and asset quality deteriorated while NII was a beat. Net profit fell 7% y-o-y to Rs 1001 cr while NII surged 41% to Rs 2667 cr Gross NPA ratio rose 50 bps q-o-q to 2.1% net NPA ratio rose 34 bps to 1.18%. The bank named Ravneet Gill as new MD & CEO.

Ultratech's revenue met estimate while operational performance and bottomline was a miss. Net profit rose 6.5% y-o-y to Rs 449 cr. Revenue rose 18% to Rs 8812 cr, EBITDA was up 9.5% at Rs 1391 cr while margins dipped 170 bps to 15.8%.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.7% and SGX Nifty is suggesting about 50 points higher start for our market.

In yesterday's report we had said that "34-DMA, placed around 10800, is the next downside support to eye". Nifty, after touching a low of 10799, rebounded to end at 10850 and is set to open near 10900 today.

10945, the top made on Wednesday, continues to be immediate hurdle above which 10987, the top made on Monday, would be the next resistance to eye.

10800 continues to be immediate support, below which, 10700, where a trendline adjoining bottoms made in October and December is placed, would be the next support to eye

L & T and Maruti will report their quarterly earnings today.