11090-11322 CONTINUES TO BE IMMEDIATE RANGE

11090-11322 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices gained 0.6% each after Trump said he will meet with Chinese Vice Premier Liu He on Friday, raising hope the two countries could make progress on the trade front.

Media reports suggested that U.S was considering an agreement to suspend next week’s tariff increase in exchange for a currency pact.  Another report said Trump administration will grant licenses to some U.S. companies to sell nonsensitive supplies to Huawei.

Brent crude rose 90 cents, or 1.5%, to $59.21 a barrel while WTI futures settled 96 cents, or 1.8% higher at $53.55 per barrel as OPEC indicated that all options were on the table to balance oil markets and that it would take a decision in December on supply for next year.

European markets rose 0.3%-1.3%. UK GDP figure beat forecasts, rising 0.3% in the three months to August as July’s growth was revised up from 0.3% to 0.4%.

AT HOME

After falling about a percent, Sensex and Nifty recouped some of the losses in last half an hour to end lower by 0.8% and 0.7% respectively. Sensex settled at 37880, down 297 points while Nifty lost 78 points to finish at 11234. BSE mid-cap and small-cap indices fell 0.9% and 0.6% respectively. BSE Bankex and Realty indices tumbled 2.6% and 2.2% respectively, becoming top losers among the sectoral indices while Telecom index soared 3.8%, becoming top gainer, followed by 1.7% higher Energy index.

FIIs net sold stocks, index futures and stock futures worth Rs 263 cr, 685 cr and 227 cr respectively. DIIs were net buyers to the tune of Rs 503 cr.

Rupee ended unchanged at 71.07/$.

TCS was a miss on all the parameters. Dollar revenue growth stood at 0.6% while constant currency growth stood at 1.6%. Rupee revenue rose 2.1% q-o-q to Rs 38977 cr, EBIT rose 1.5% to Rs 9361 cr, EBIT margin fell 20 bps to 24%, the lowest in 2-years and net profit fell 1.1% to Rs 8042 cr. The company declared a special dividend of Rs 40 per share.

Indusind Bank's net profit met estimates while NII was a slight miss. Net profit rose 3.4% q-o-q to Rs 1383 cr while NII rose 2.3% to Rs 2909 cr. Gross NPA ratio rose 4 bps q-o-q to 2.19% while net NPA ratio improved 11 bps to 1.12%. Slippages rose to Rs 1102 cr from Rs 725 cr.

Bharti Airtel surged after Reliance Jio said it will start charging for calls made to rival networks at 6 paise a minute.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-1.2% and SGX Nifty is suggesting about 20 points higher start for our market.

On Wednesday, after achieving 34-DMA target of 11090, Nifty had bounced back sharply to touch a high of 11322, which also coincided with the resistance level mentioned by us. In yesterday's report we had said that 11322, the top made on Wednesday, is the immediate hurdle while 11090, the low made on Wednesday, continues to be important immediate support.

Nifty yesterday slipped to touch a low of 11208 before closing at 11234 and is set to open near 11250 today.

11090, the low made Wednesday, continues to be important immediate support to eye. 11322, the top made Wednesday, continues to be immediate hurdle, upon crossover of which, 11390, the 50% retracement level of the recent 11695-11090 fall, would be the next upside target to eye.