NIFTY SET TO ACHIEVE UPSIDE TARGET; TRAIL STOP-LOSS TO 9350

NIFTY SET TO ACHIEVE UPSIDE TARGET; TRAIL STOP-LOSS TO 9350

WORLD MARKETS

US indices soared 2.2%-3.6% after Gilead Sciences claimed it was seeing “positive data” from trials of its drug remdesivir as a coronavirus treatment. 

Gilead Sciences reported positive results from two tests that showed its drug remdesivir could be a Covid-19 treatment. Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said remdesivir shows a “clear-cut” positive effect when treating the virus.

The U.S. Federal Reserve pledged to keep rates near zero for as long as needed and provide additional help to the economy.

WTI for June delivery surged 22%, or $2.72, to settle at $15.06 per barrel while Brent gained $2.1, or 10.2%, to settle at $22.54 after data showed a smaller-than-expected build in U.S. inventories.

European markets gained 2.2%-3.2%. Eurozone economic sentiment plunged to 67.0 in April from a downwardly-revised 94.2 in March.

Facebook and Microsoft rallied in after-hours trading after each issued better-than-expected revenue projections in their earnings reports.

AT HOME

Benchmark indices soared just under 2%, extending the winning streak to third consecutive day and closing at fresh highs in 1-1/2 months. Sensex added 605 points to settle at 32720 while Nifty finished at 9553, up 172 points. BSE mid-cap and small-cap indices rose 1% each. Except half a percent lower FMCG index, all the BSE sectoral indices ended in green with Metal and Finance indices leading the tally, up 3.9% and 3.2% respectively.

FIIs net bought stocks and stock futures worth Rs 722 cr and 478 cr respectively but net sold index futures worth Rs 66 cr. DIIs were net buyers to the tune of Rs 79 cr.

Rupee appreciated 50 paise to end at 75.69/$, it's strongest level in one month.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.3%-2.3% and SGX Nifty is suggesting about 150 points higher start for our market.

In yesterday's report we had said that 9650, where an upwards sloping trendline adjoining recent tops on daily chart was placed, would be the next target/resistance to eye and had advised holding on to long positions with a stop-loss of 9140.

Nifty soared to touch a high of 9600 before closing at 9553 and is set to open near 9700 today.

Today’s gap up opening will achive the upward sloping trendline target, which is now placed around 9675. Once this hurdle is taken out decisively, 9970, the 50% retracement level of the entire 12430-7511 fall, would be the next major target/resistance to eye.

Immediate support on the hourly chart has moved up to 9350, with the stop-loss of which, existing longs can be held on to.

Reliance Industries, HUL and Tech Mahindra will report their quarterly earnings today.

9650 IS THE NEXT HURDLE; 9140 IMMEDIATE SUPPORT

9650 IS THE NEXT HURDLE; 9140 IMMEDIATE SUPPORT

WORLD MARKETS

After opening with gains of 1%-1.5%, US equity indices, pressured by weakness in technology shares, slipped to end in red with Nasdaq, S & P 500 and Dow down 1.4%, 0.5% and 0.1% respectively.

Alphabet, Google's parent company, fell 3% ahead of its earnings report. Netflix, Amazon and Facebook fell between 2.6%-4%.

WTI futures for June delivery fell 44 cents, or 3.4%, to settle at $12.34 per barrel, while Brent crude gained 47 cents, or 2.4%, to settle at $20.46.

European markets gained 1.3%-1.9%.

AT HOME

Benchmark indices climbed more than a percent, extending the winning streak to second straight day and closing at the highest level since 13th March, marking 1-1/2 month high. Sensex settled at 32114, up 371 points while Nifty added 98 points to finish at 9380. BSE mid-cap and small-cap indices rose 0.8% each. BSE Finance and Bankex indices surged 3.5% and 2.9% respectively, becoming top gainers among the sectoral indices while Healthcare and Telecom indices were the top losers, down 1.6% and 1.4% respectively.

FIIs net sold stocks worth Rs 122 cr but net bought index futures and stock futures worth Rs 692 cr and 391 cr respectively. DIIs were net buyers to the tune of Rs 389 cr.

Rupee appreciated 5 paise to end at 76.19/$.

Axis Bank reported decent operational numbers along with stable asset quality, however outlook remained weak. Loan growth stood at 15.5% y-o-y. Gross NPA ratio improved to 4.86% from 5% sequentially. Slippages were down 37% q-o-q while NIM was stable at 3.55% vs 3.57%. Watchlist rose 12.4% q-o-q to Rs 10996 cr. The bank reported a net loss of Rs 1387 cr cr on the back of elevated provisions.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.4%-0.8% and SGX Nifty is suggesting about 50 points higher start for our market.

In yesterday's report we had reiterated the view that, 9390, continued to be important immediate resistance, a crossover of which is required for a fresh upmove.

Nifty soared to touch a high of 9404 before closing at 9380 and is set to open above 9400 today.

9650, where an upwards sloping trendline adjoining recent tops on daily chart is placed, would be the next target/resistance to eye.

9140, the low made on Friday, is now the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

US Fed will announce its interest rate decision today. Markets will look for guidance on future path of interest rates as the country looks toward gradually reopening its economy.

NIFTY RETREATS FROM 9390 HURDLE; 9025 IS IMMEDIATE SUPPORT

NIFTY RETREATS FROM 9390 HURDLE; 9025 IS IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 climbed 1.5% each while Nasdaq rose 1.1% as a partial reopening of the economy — in Alaska, Georgia, South Carolina, Tennessee, Texas and others —  boosted sentiment.

WTI crude for June delivery nosedived 24.6%, or $4.16, to settle at $12.78 per barrel while Brent fell 6.8% to settle at $19.99 on fears that worldwide storage will soon fill as a result of weak demand caused by the coronavirus pandemic.

European markets surged 1.8%-3.1%.

AT HOME

After rising nearly two and a half percent in the morning, benchmark indices lost nearly a percent from the top of the day later to end higher by nearly 1.4%. Sensex settled at 31743, up 415 points while Nifty added 127 points to finish at 9282. BSE mid-cap and small-cap indices too gained 1.4% each. Except 0.3% lower Power index, all the BSE sectoral indices ended in green with Bankex and Finance indices leading the tally, up 2.9% and 2.1% respectively.

FIIs net sold stocks and stock futures worth Rs 916 cr and 298 cr respectively but net bought index futures worth Rs 1548 cr. DIIs were net buyers to the tune of Rs 1142 cr.

Rupee appreciated 21 paise to end at 76.24/$.

To ease liquidity pressures on mutual funds, Reserve Bank of India announced a special liquidity facility of ₹50,000 crore for mutual funds.

Indusind Bank reported mixed set of numbers as NII was better-than-expected while slippages and gross NPAs rose sequentially. NII rise 10.8% to Rs 3231 cr Y-o-Y . Net profit fell 77% to Rs 302 cr. Net Interest margin hit all-time-high at 4.25%. Gross NPA ratio rose to 2.45% from 2.18% while net NPA ratio improved to 0.91% from 1.05%. Loan growth stood at 11% Y-o-Y. Provisions rose to Rs 2440 cr from Rs 1043 cr Q-o-Q and slippages rose 5.8% to Rs 2058 cr from Rs 1945 cr.

OUTLOOK

Today morning, Asian markets are trading with modest cuts while SGX Nifty is suggesting a modestly higher start for our market.

In yesterday's report we had reiterated the view that, 9390, continued to be important immediate resistance, a crossover of which is required for a fresh upmove.

Nifty, after touching a high of 9377, slipped to end at 9282 and is set to open near 9300 today.

9390, the top made last week, which exactly coincided with the 38.2% retracement level of the entire 12430-7511 fall, continues to be important immediate resistance, a crossover of which is required for a fresh upmove. If that happens, 9600, where an upwards sloping trendline adjoining recent tops on daily chart is placed, would be the next target/resistance to eye.

On the way down, 9025 is where a trendline adjoining recent bottoms on the hourly chart lands support. Below 9025, 8909, the low made last week, would be next important support.

Axis Bank will report its quarterly earnings today.

9390 CONTINUES TO BE IMPORTANT HURDLE; 9000 IMMEDIATE SUPPORT

9390 CONTINUES TO BE IMPORTANT HURDLE; 9000 IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 1.1%-1.6% on Friday as oil continued to recover and markets weighed the prospects of a potential coronavirus treatment from Gilead Sciences.

US oil rose 44 cents, or 2.7%, to $16.94 per barrel, after surging nearly 20% in the previous session, amid hopes the U.S. will reduce some of its production to account for shrinking demand and storage capacity. Brent gained 32 cents, or 1.5%, to trade at at $21.65.

Media reports suggested that a U.S. government-led trial of remdesivir, a Gilead Sciences’ drug, was running ahead of schedule. The report said those results could be ready by mid-May, with preliminary numbers possibly out earlier.

President Donald Trump signed a $484 billion relief bill to boost small businesses and hospitals.

European markets fell 0.9%-2%.EU leaders agreed Thursday evening to develop a trillion-euro emergency fund to help support governments with limited fiscal space. Meanwhile, British retail sales fell at the fastest rate on record in March.

For the week, US indices fell 0.2%-1.9%, snapping two-week winning streak. WTI crude fell over 30% for the week.

AT HOME

Benchmark indices ended with cuts of 1.7% each after a choppy session, breaking two-day winning streak. Sensex settled at 31327, down 535 points while Nifty lost 159 points to finish at 9154. BSE mid-cap and small-cap indices fell 1.8% and 1.4% respectively. BSE Realty and Finance indices nosedived 4.2% and 3.9% respectively, becoming top losers among the sectoral indices while Energy and Healthcare indices were the top gainers, up 2% and 1.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 207 cr, 456 cr and 105 cr respectively. DIIs were net sellers to the tune of Rs 994 cr.

Rupee depreciated 38 paise to end at 76.45/$.

For the week, Sensex and Nifty fell 0.8% and 1.2% respectively, breaking two-week winning streak.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.7%-1.9% and SGX Nifty is suggesting about 75 points higher start for our market.

In Friday's report we had reiterated the view that, 9390, the top made on Monday, which exactly coincided with the 38.2% retracement level of the entire 12430-7511 fall, continued to be important immediate resistance, a crossover of which is required for a fresh upmove.

Nifty, on Friday, slipped 159 points to finish at 9154 but is set to open above 9200 today.

9390, the top made last week, which exactly coincided with the 38.2% retracement level of the entire 12430-7511 fall, continues to be important immediate resistance, a crossover of which is required for a fresh upmove. If that happens, 9570, where an upwards sloping trendline adjoining recent tops on daily chart is placed, would be the next target/resistance to eye.

On the way down, 9000 is where a trendline adjoining recent bottoms on the hourly chart lands support. Below 9000, 8909, the low made last week, would be next important support.

Indusind Bank and Ambuja Cement will report their quarterly earnings today.

9390 CONTINUES TO BE IMPORTANT HURDLE; 9050 IMMEDIATE SUPPORT

9390 CONTINUES TO BE IMPORTANT HURDLE; 9050 IMMEDIATE SUPPORT

WORLD MARKETS

After rising nearly a percent and half in the first half, US indices gave away all the gains later to end little changed on reports that suggested that a closely followed experimental drug intended to be used to treat coronavirus delivered disappointing results in an “inconclusive” trial. However, another sharp rebound in oil prices capped the decline in equities.

The Financial Times, citing documents accidentally published by the World Health Organization, reported that Gilead Sciences’ drug remdesivir did not improve coronavirus patients’ condition. The documents cited by the FT referred to a Chinese clinical trial. Meanwhile, Gilead noted that study was “terminated early due to low enrollment,” leaving it “underpowered to enable statistically meaningful conclusions. As such, the study results are inconclusive.”

WTI crude rose 19.7%, or $2.72, to settle at $16.50 per barrel, bringing two-day gains to more than 40%, while Brent gained 96 cents, or 4.7%, to $21.33 as markets eyed continued production cuts and rising U.S.-Iranian tensions.

European market gained 0.9%-1.5%. The IHS Markit PMI dropped to 13.5 in April, hitting record low, from 29.5 in March. France’s April composite PMI dropped to 11.2 from 28.9 in March, marking the lowest reading since the benchmark began in 1998. Germany's reading plunged from 35.0 in March to 17.1 in April, also a record low.

AT HOME

Benchamrk indices climbed nearly a percent and half, extending Wednesday's upmove and closing at the highest level since 13th March, 2020. Sensex settled at 31863, up 483 points while Nifty added 126 points to finish at 9313. BSE mid-cap and small-cap indices gained 0.9% and 1.4% respectively. BSE IT and Teck indices soared 4.8% and 3.9% respectively, becoming top gainers among the sectoral indices while Consumer Durables and FMCG indices were the top losers, down 1.4% and 1.3% respectively.

FIIs net sold stocks and stock futures worth Rs 115 cr and 98 cr respectively but net bought index futures worth Rs 139 cr. DIIs were net buyers to the tune of Rs 338 cr.

Rupee appreciated 60 paise to end at 76.07/$.

Franklin Templeton Mutual Fund has decided to wind up six of its debt schemes, with a combined asset base of Rs 25,856 crore, citing continued redemption pressure and lack of liquidity in the debt markets.

OUTLOOK

Today morning, Asian markets are trading with cut of 0.5%-1.3% and SGX Nifty is suggesting about 100 points lower start for our market.

In yesterday's report we had said that 9230, the upper end of the gap created by Tuesday's gap down opening, continued to be immediate hurdle, upon crossover of which, 9390, the top made on Monday, would be the bigger hurdle to eye.

Nifty crossed 9230 hurdle and surged all the way to 9343 before closing at 9313 but is set to open near 9200 today.

9390, the top made on Monday, which exactly coincided with the 38.2% retracement level of the entire 12430-7511 fall, continues to be important immediate resistance, a crossover of which is required for a fresh upmove. If that happens, 9525, where an upwards sloping trendline adjoining recent tops on daily chart is placed, would be the next target/resistance to eye.

On the way down, 9050 is where a trendline adjoining recent bottoms on the daily chart lands support. Below 9050, 8909, the low made on Tuesday, would be next important support.

9230 IS THE IMMEDIATE HURDLE; 8909 IMMEDIATE SUPPORT

9230 IS THE IMMEDIATE HURDLE; 8909 IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 2%-2.8% as oil prices bounced back from a steep sell-off. Senate passing a $484 billion coronavirus relief package to provide additional funding for small businesses, hospitals and coronavirus testing, also boosted the sentiment.

WTI crude for June delivery rose $2.21, or 19.1%, to settle at $13.8 per barrel. Brent crude settled $1.04, or 5.38%, higher at $20.37.

Stocks of Snapchat and Chipotle surged after their earnings beat expectations.

European markets rose 1.2%-2.3%. UK consumer price index came in at 1.5%, compared to 1.7% in February.

AT HOME

After a flattish start, Sensex and Nifty saw a sustained northward move though the session to end higher by 2.4% and 2.3% respectively, breaking two-day losing streak. Sensex settled at 31379, up 742 points while Nifty finished at 9187, up 205 points. BSE mid-cap and small-cap indices however underperformed, gaining just 0.8% and 0.7% respectively. Except 0.9% and 0.8% lower Realty and Capital Goods indices, all the BSE sectoral indices ended in green with Energy index being the top gainer, up 7.4%, followed by 2.6% higher Auto index.

FIIs net sold stocks worth Rs 1326 cr but net bought index futures and stock futures worth Rs 417 cr and 577 cr respectively. DIIs were net buyers to the tune of Rs 864 cr.

Rupee appreciated 17 paise to end at 76.67/$.

OUTLOOK

Today morning, Asian markets are trading with gains of upto 0.8% and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that below 8909, which was the low made on Tuesday, 8822 and 8700, which were the bottoms made on 16th and 8th April respectively, would be next downside supports/targets to eye while 9044-9230, the gap created by Tuesday’s gap down opening, will act as resistance zone.

Nifty, after touching a low of 8946 in the initial trade, surged to 9209 before closing at 9187.

9230, the upper end of the gap created by Tuesday's gap down opening, continues to be immediate hurdle to eye. Above 9230, 9390, the top made on Monday, would be the bigger hurdle to eye.

8909, the low made on Tuesday, continues to be immediate support.

Bharti Infratel will report its quarterly earnings today.

8822, 8700 BELOW 8909; 9044-9230 IS THE RESISTANCE ZONE

8822, 8700 BELOW 8909; 9044-9230 IS THE RESISTANCE ZONE

WORLD MARKETS

US indices tumbled 2.7%-3.5%, extending Monday's fall, as oil prices continued their unprecedented wipeout, further denting market sentiment.

WTI June cotract slipped 43.4% to settle at $11.57 per barrel while  Brent crude fell 24.4% to $19.33 per barrel.

IBM slipped 3% after reporting a 3.4% Y-o-Y decline in revenue in the first quarter amid the spread of coronavirus. Salesforce and Oracle both fell more than 4% after IBM said its software and global business segments suffered from strong headwinds in the last two weeks of March due to the virus.

Meanwhile, Senate struck a deal on a $484 billion relief package for small businesses, hospitals and testing.

European markets fell 3%-3.8%. Data from UK showed growth in the number of people employed fell to 0.8% in last month, from 1.1% in February.

AT HOME

After a big gap-down opening, benchmark indices lost some more through the session to end with deep cuts of 3%, marking the biggest daily fall since 1^st April. Sensex settled at 30636, down 1011 points while Nifty finished at 8981, down 280 points. BSE mid-cap and small-cap indices fell 2.7% and 3% respectively. Except  1.7% and 1.3% higher Telecom and Healthcare indices, all the BSE sectoral indices ended in red, with Bankex and Metal indices leading the losses, down 5.5% and 5.3% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 2095 cr, 1071 cr and 684 cr respectively. DIIs were net sellers to the tune of Rs 68 cr.

Rupee depreciated 30 paise to end at 76.83/$.

Facebook will invest $5.7 bn or Rs 43574 cr to pick up a stake in Reliance Jio. This will make Facebook the largest minority shareholder in Jio platforms.

ACC reported better-than-expected numbers on all counts except revenue. Revenue fell 11.1% y-o-y to Rs 3501 cr, EBITDA was up 6.3% at Rs 586 cr, margin improved 273 points to 16.74% while profit fell 6.6% to Rs 323 cr.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-1.4% and SGX Nifty is suggesting about 60 points lower start for our market.

Readers would recall that after Nifty achieved 9134 target, we had been working with next target/resistance of 9390, the 38.2% retracement level of the entire 12430-7511 fall. We had also advising trailing stop-loss in long positions to 8930 in yesterday's report.

Nifty, after hitting 9390 target/resistance on Monday, reversed and touched a low of 8909 yesterday before closing at 8981 and is set to open near yesterday’s low today.

Below yesterday’s low, i.e. 8909, 8822, followed by 8700, which are the bottoms made on 16^th and 8^th April respectively, would be next downside supports/targets to eye.

9044-9230, the gap created by yesterday’s gap down opening, will now act as the resistance zone.

NIFTY RETREATS AFTER ACHIEVING 9390 TARGET; 8930 IS IMMEDIATE SUPPORT

NIFTY RETREATS AFTER ACHIEVING 9390 TARGET; 8930 IS IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell 1%-2.4%  as an unprecedented plunge in oil prices weighed on market sentiment.

May contract for WTI crude, which expires Today, dropped more than 100% to settle at negative $37.63 per barrel, a bizarre move tied to weak demand outlook and storage capacity issues. The June contract of WTI fell 18% to settle at $20.43. Brent June contract settled 8.9% lower at $25.57 per barrel.

Also, the US Senate failed to reach a deal on the next package to rescue an economy and health care system ravaged by coronavirus pandemic.

Meanwhile, Georgia rolled out aggressive plans to reopen the state’s economy, calling for many businesses to reopen their doors as early as Friday.

Main European markets gained 0.4%-0.6%. The euro zone’s trade surplus with the rest of the world grew to 23 billion euros ($25.1 billion) in February, up from 18.5 billion euros a year before.  IHS Markit revealed that a third of U.K. households had already suffered a drop in income because of the coronavirus crisis, with Britain registering the weakest income reading since the survey began in 2009.

AT HOME

After opening with gains of more than a percent, benchmark indices gave away all the gains through the choppy session to end little changed. Sensex settled at 31648, up 59 points while Nifty lost 5 points to finish at 9261. BSE mid-cap index fell 0.2% while small-cap index rose 0.8%. BSE IT and Energy indices gained 2.1% and 1.3% respectively, becoming top gainers among the sectoral indices while Metal and Telecom indices tumbled 3.3% and 2.6% respectively, becoming top losers.

FIIs net sold stocks and stock futures worth Rs 266 cr and 466 cr respectively but net bought index futures worth Rs 245 cr. DIIs were net sellers to the tune of Rs 789 cr.

Rupee depreciated 15 paise to end at 76.54/$.

Infosys reported mixed set of numbers with revenue and margin missing estimates while net profit was a slight beat. Dollar revenue fell 1.4% q-o-q to 3197 mn, constant currency revenue growth was down 0.8%, margin fell 70 bps to 21.2%, EBIT was down 2.7% at Rs 4927 cr and net profit fell 3.1% to Rs 4321 cr. The company refrained from giving guidance owing to pandemic uncertainty.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-1.6% and SGX Nifty is suggesting about 100 points lower start for our market. The price of the May WTI contract has returned to positive territory, trading at $1.70 a barrel.

Just to reiterate, we had turned our view on Nifty positive after 8678 hurdle was taken out on 7th April and have been advising holding on to long positions with a trailing stop-loss.

After Nifty achieved 9134 target, we had been working with next target of 9390.

Yesterday, Nifty touched a high of 9390, exactly achieving this target. From there, it slipped to end at 9261 and is set to open below 9200 today.

9390, the 38.2% retracement level of the entire 12430-7511 fall, continues to be  immediate resistance to eye, a crossover of which is required for a fresh upmove. If that happens, 9970, the 50% retracement level of the 12430-7511 fall, would be the next major upside target/resistance to eye.

The trendline adjoining recent bottoms on the hourly chart has moved to 8930, which should serve as the stop-loss in existing longs.

ACC will report its quarterly earnings today.

TRAIL STOP-LOSS TO 8900

TRAIL STOP-LOSS TO 8900

WORLD MARKETS

US indices gained 1.4%-3% on Friday after a report said a Gilead Sciences drug showed some effectiveness in treating the coronavirus and countries around the world including the U.S. and Germany are beginning to implement plans to lift lockdown measures as the rate of new cases declines.

WTI crude for June expiry fell 50 cents, or 2%, to $25.03 a barrel while Brent June contract rose 26 cents, or 0.9%, to $28.08. U.S. crude contract for May expiry tumbled $1.60, or 8.1%, to $18.27 per barrel, its lowest since January 2002, reflecting fears over a global glut and tight storage space.

European market climbed 1.7%-3.4%. Euro zone inflation slowed sharply in March to 0.7% year-on-year, down from 1.2% in February.

For the week, Nasdaq climbed 6.1% while S & P 500 and Dow rose 3% and 2.2% respectively, all extending the winning streak to second straight week and closing at the highest level since early March. In Europe, FTSE and CAC fell 1% and 0.2% respectively while DAX rose 0.6%. In Asia, Nikkei soared 13% while other markets ended with modest gains ranging from 0.3%-1.7%. WTI crude plunged 22%, hitting an 18-year low.

AT HOME

The week ended on a positive note as Sensex and Nifty soared 3.2% and 3% respectively, extending the winning streak to second straight day and closing at the highest level since 13 March 2020. Sensex added 986 points to settle at 31588 while Nifty finished at 9266, up 273 points. BSE mid-cap and small-cap indices gained 2.1% and 2.4% respectively, extending rising streak to third straight day. Except 1% and 0.7% lower FMCG and Healthcare indices respectively, all the BSE sectoral indices ended higher with Bankex and Finance indices being the top gainers, up 6.8% and 5.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1392 cr, 7 cr and 729 cr respectively. DIIs were net buyers to the tune of Rs 534 cr.

Rupee appreciated 47 paise to end at 76.39/$.

For the week, Sensex and Nifty rose 1.4% and 1.7% respectively, extending winning streak to second straight week.

RBI announced new measures to boost liquidity, expand bank credit flow and ease financial stress. Targeted long-term repo operations (TLTRO) 2.0 worth ₹50,000 crore would be conducted to benefit NBFCs and micro-financial institutions. The apex bank cut reverse repo rate to 25 basis points to 3.75% so that banks are nudged to lend more, instead of deploying funds with the central bank. Other measures include providing Rs 50,000 crore refinance to Nabard, SIDBI and NHB and increasing the ways and means advances (WMAs) limit to 60% to allow States the flexibility to borrow. RBI also said the moratorium period will be excluded from the classification of non-performing assets (NPAs).

HDFC Bank reported 17.7% rise in Q4 net profit at Rs 6927 cr. NII rose 16.2% to Rs 15204 cr. Asset quality improved on sequential basis. Gross NPA ratio improved to 1.26% from 1.42% while net NPA ratio improved to 0.36% from 0.48%. Provisions for non-performing assets rose 24% q-o-q to Rs 3748 cr. Slippages came in at 10-quarter low.

OUTLOOK

Today morning, Hang Seng and Shanghai are little changed while Nikkei is off 1%. SGX Nifty is suggesting about 50 points lower start for our market.

At the risk of repeating, we had advised going long on Nifty after 8678 hurdle was taken out on 7th April and have been advising holding on to long positions with a trailing stop-loss.

On Friday, we had reiterated the target of 9390 and had advised trailing the stop-loss to 8800.

Nifty, on Friday, touched a high of 9324 before closing at 9266 and is set to open near 9200 today.

9390, the the 38.2% retracement level of the entire 12430-7511 fall, continues to be  next target/ resistance to eye. Above 9390, 34-DMA, placed around 9500, would be the next important target/resistance. On the way down, 8900, where a trendline adjoining recent bottoms on the hourly chart is placed, is the immediate support, with the stop-loss of which, existing longs can be held on to.

Infosys will report its quarterly earnings today.

NIFTY REBOUNDS FROM 8800 SUPPORT; 9390 CONTINUES TO BE NEXT UPSIDE TARGET

NIFTY REBOUNDS FROM 8800 SUPPORT; 9390 CONTINUES TO BE NEXT UPSIDE TARGET

WORLD MARKETS

Dow and S & P 500 rose 0.1% and 0.6% respectively while Nasdaq climbed 1.7% as dismal economic data was overshadowed by gains in technology and healthcare stocks and optimism that Covid-19 infections may soon begin to slow in the United States.

More than 5.2 million Americans filed first-time jobless claims during the week ending April 11, bringing the total number of U.S. job losses during the coronavirus crisis up to 22 million.

President Donald Trump said that “our experts say the curve has flattened and the peak … is behind us.” He also issued guidelines to open up parts of the U.S.

WTI crude settled unchanged at $19.87 per barrel while Brent rose 13 cents to $27.82 per barrel.

In Europe, FTSE and DAX rose 0.6% and 0.2% respectively while CAC fell 0.1%. Euro zone industrial production dipped by 0.1% month-on-month and 1.9% year-on-year in February.

AT HOME

After falling more than a percent in the initial trade, benchmark indices saw a sustained northward move through the session to end higher by three fourth of a percent, breaking two-day losing streak. Sensex settled at 30602, up 222 points while Nifty added 67 points to finish at 8992. BSE mid-cap and small-cap indices gained 1.4% and 1.7% respectively. BSE Power and Utilities indices rose 2.8% each, becoming top gainers among the sectoral indices while IT index was the top loser, down 1.8%, followed by 1.7% lower Teck and Telecom indices.

FIIs net sold stocks worth Rs 2920 cr but net bought index futures and stock futures worth Rs 360 cr and 644 cr respectively. DIIs were net buyers to the tune of Rs 1321 cr.

Rupee depreciated 42 paise to end at 76.86/$, hitting fresh record low.

TCS results were a mixed bag as revenues missed estimate while margin was better than estimates. The management said that future is challenging but it expects to get back to original trajectory from Q3 FY21. The company also maintained original margin guidance of 26-28%.

OUTLOOK

Today morning, US futures are up 2%-3.5% and Asian markets are trading with gains of 0.7%-3% on news that a Gilead Sciences drug in the US was showing effectiveness in treating the coronavirus. Better-than-expected economic data from China is also aiding sentiment. China Q1 GDP data is showing contraction of 6.8% y-o-y, which is better than the expected fall of 8.3%. March industrial output is down 1.1% y-o-y as against expectation of  7.5 fall. SGX Nifty is suggesting more than 200 points higher start for our market.

At the risk of repeating, we had advised going long on Nifty after 8678 hurdle was taken out on 7th April and have been advising holding on to long positions with a trailing stop-loss.

In yesterday's report we had said that the immediate support on the hourly chart had moved higher to 8800, with the stop-loss of which, trading longs can be held on to.

Nifty, after touching a low of 8821 in the initial trade, rebounded smartly to end at 8992 and is set to open near 9200 today.

9390, the the 38.2% retracement level of the entire 12430-7511 fall, continues to be  next target/ resistance to eye. Above 9390, 34-DMA, placed around 9500, would be the next important target/resistance.

8800 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

RBI governor will address the media at 10 am today.

TRAIL STOP-LOSS TO 8800

TRAIL STOP-LOSS TO 8800

WORLD MARKETS

US indices fell 1.4%-2.2% a plunge on the back of gloomy economic data and dismal bank earnings.

US March retail sales plunged 8.7%, marking the largest one-month decline since the beginning of the series in 1992. Manufacturing in the New York area also slumped by its biggest margin ever to a historic low, surpassing the levels seen during the Great Recession.

Goldman Sachs and Citigroup saw earnings tumble 46% in the first quarter, with both missing consensus analyst forecasts. Bank of America reported a profit decline of 45% and a $3.6 billion spike in loan-loss reserves.

Brent crude plunged 6.4% to $27.69 per barrel while WTI crude fell 1.2% to settle at $19.87 per barrel, its lowest settle since Feb. 2002 after International Energy Agency (IEA) forecasted a 29 million barrel per day (bpd) dive in April oil demand to levels not seen in 25 years and said no output cut could fully offset the near-term falls facing the market.

European markets slipped 3.3%-4.8%.

AT HOME

After gaining nearly 3% in morning, Sensex and Nifty gave away all the gains in steep noon plunge to end lower by 1% and 0.8% respectively, extending the losing streak to second straight day. Sensex settled at 30380, down 310 points while Nifty lost 68 points to finish at 8925. BSE mid-cap and small-cap indices however gained 1.3% and 1.2% respectively. BSE Bankex and Finance indices slipped 2.5% and 2.4% respectively, becoming top losers among the sectoral indices while FMCG index climbed 4.3%, becoming top gainer, followed by 2.5% higher Basic Materials index.

FIIs net bought stocks and index futures worth Rs 1359 cr and 1283 cr respectively but net sold stock futures worth Rs 195 cr. DIIs were net sellers to the tune of Rs 1098 cr.

Rupee depreciated 17 paise to end at 76.44/$.

Government yesterday allowed select factories, IT and IT enabled services, construction & municipal activity to resume operations after April 20, but with strict conditions. However, no activity will be allowed inside containment zones. Also, there will be no relief for airlines, hotels, malls and cinemas.

Indian Meteorological department said that southwest monsoon is expected to be normal this year.

Wipro's Q4 numbers missed expectations and its own guidance. Constant currency revenue growth was inline with expectations . Company skipped giving a guidance for Q1 saying the coming quarters appear challenging.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-1.4% and SGX Nifty is suggesting about 60 points lower start for our market.

Readers would recall that we had advised going long on Nifty after 8678 hurdle was taken out on 7th April and have advising holding on to long positions with a trailing stop-loss.

In yesterday's report we had said that 9390, the the 38.2% retracement level of 12430-7511 fall, would be the next target/resistance to eye once Nifty sustains above 9134.

Nifty opened above 9134 hurdle and touched a high of 9261, but slipped sharply from there to end at 8925 and is set to open below 8900 today.

9390, the the 38.2% retracement level of the entire 12430-7511 fall, continues to be  immediate resistance to eye.

Immediate support on the hourly chart has moved higher to 8800, with the stop-loss of which, trading longs can be held on to.

TCS will report its quarterly earnings today.