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.