10952 BELOW 11084; 11300 IS IMMEDIATE HURDLE

10952 BELOW 11084; 11300 IS IMMEDIATE HURDLE

WORLD MARKETS

After opening with cuts of nearly 2% on the back of historic GDP decline, Dow and S & P 500 recovered through the session to end lower by 0.8% and 0.4% respectively. Nasdaq ended higher by 0.4% ahead of earnings from big tech companies.

U.S. GDP contracted 32.9% in the second quarter — the worst drop ever. The expected decline was 34.7%. Weekly jobless claims came in at 1.434 million, roughly in line with estimates. However, continuing claims, or those who have been collecting for at least two weeks, totaled 17.018 million, up from about 16 million last week.

After the bell, big tech companies reported strong set of earnings. Apple reported a blowout quarter, with overall sales expanding by 11%. Apple also announced a 4-for-1 stock split. Amazon, meanwhile, traded 5.3% higher as the company saw its sales skyrocket during the coronavirus pandemic. Facebook shares rallied more than 7%  the social media giant posted revenue growth of 11%. The company also issued stronger-than-expected sales guidance for the current quarter.

WTI futures settled $1.35, or 3.3%, lower at 39.92. Brent crude futures, which expire today, settled 81 cents lower at $42.94 per barrel.

European markets plunged 2.1%-3.4%.

AT HOME

After rising nearly a percent in the morning, benchmark indices nosedived just under 2% in the noon session to end with cuts of nearly a percent, extending the losing streak to second consecutive day. Sensex settled at 37736, down 335 points while Nifty lost 100 points to finish at 11102. BSE mid-cap and small-cap indices fell 0.4% each. BSE Telecom and Oil & Gas indices tumbled 2.2% each, becoming top losers among the sectoral indices while Healthcare index climbed 2%, becoming top gainer, followed by 0.6% higher IT index.

FIIs net bought stocks, index futures and stock futures worth Rs 207 cr, 539 cr and 395 cr respectively. DIIs were net sellers to the tune of Rs 387 cr.

Rupee depreciated 4 paise to end at 74.84/$.

Reliance earnings were a mixed bag. Jio beat estimates while refining, petchem and retail disappointed.

OUTLOOK

China's July manufacturing PMI has come in at 51.1, up from 50.9 in June and better than the expected 50.7 figure.

Today morning, Hang Seng and Shanghai are up 0.7% each while Nikkei is down. SGX Nifty is suggesting around 40 points higher start for our market.

In yesterday's report we had reiterated the view that 11390, the top made on 5th March, continued to be upside target/hurdle and that trading longs could be held on to with the stop-loss of 11115.

Nifty, after touching a high of 11300 in the morning, plunged to 11085 before closing at 11102 and is set to open near 11150 today.

11084, the low made yesterday, also coincided with the 33% retracement level of the recent 10562-11341 upmove. Once 11084 is breached, 10952 and 10820, the 50% and 67% retracement levels of the 10562-11341 upmove, would be next downside targets.

11300, the top made yesterday, would now act as immediate hurdle.

SBI, Sun Pharma, IOC, UPL and Tata Motors will report their quarterly earnings today.

STAY LONG WITH THE STOP-LOSS OF 11115

STAY LONG WITH THE STOP-LOSS OF 11115

WORLD MARKETS

Dow rose 0.6% while S & P 500 and Nasdaq climbed 1.2% and 1.4% respectively after Fed kept interest rates unchanged and tech shares rose.

Shares of big tech companies viz. Facebook, Amazon, Alphabet and Apple rose as each company’s CEO testified in front of U.S. lawmakers following a yearlong probe into their anti-competitive practices.

Fed held interest rate steady as was widely expected. Policy statement said that U.S. economic activity and employment “have picked up somewhat in recent months but remain well below their levels at the beginning of the year.” Fed Chairman Powell told reporters the Fed will maintain its historic stimulus measures until they are confident the economy has “weathered” the crisis.

GE fell 4.4% after reporting a stronger-than-forecast revenue along with a wider-than-expected loss. Shares of the industrial giant fell 4.4%. Boeing also posted a wider-than-expected loss and its stock slid 3%. Advanced Micro Devices popped more than 12.5% after posting better-than-expected quarterly earnings and issuing upbeat guidance for the year. Starbucks rose more than 3% after raising its forecast for the current quarter.

Brent crude futures rose 45 cents to $43.67 a barrel while WTI futures were up 23 cents to $41.27. Data from EIA showed U.S. crude oil inventories fell by 10.6 million barrels last week to 526 million barrels, their largest draw down since December.

European markets closed mixed with modest changes.

AT HOME

After gaining about a third of a percent at the open, Sensex and Nifty nosedived to end the session with cuts of 1.1% and 0.9% respectively. Sensex settled at 38071, down 421 points while Nifty lost 97 points to finish at 11202. BSE mid-cap and small-cap indices however gained 0.7% and 0.4% respectively. BSE Energy index tumbled 3%, becoming top gainer among the sectoral indices, followed by 1.2% lower Auto index. Healthcare index climbed 2.1%, becoming top gainer, followed by 1% higher Metal index.

FIIs net sold stocks, index futures and stock futures worth Rs 353 cr, 819 cr and 292 cr respectively. DIIs were net sellers to the tune of Rs 506 cr.

Rupee appreciated 3 paise to end at 74.80/$.

Government yesterday unveiled 'Unlock 3' guidelines which allows gymnasiums and yoga institutes to open from August 5. Night curfew too will be lifted. Movie theaters and educational institutes however will continue to remain shut.

Bharti Airtel reported a net loss of Rs 15933 cr as it made a provision of Rs 10744 cr for AGR dues. Revenue rose 0.9% q-o-q to Rs 23939 cr, EBITDA rose 3% to Rs 10639 cr and margin expanded 90 bps to 44.4%. ARPU rose 2% to Rs 157.

Dr Reddy soared after Q1 results beat estimates on all counts. Revenue rose 15% y-o-y to Rs 4418 cr, EBITDA was up 2.5% at Rs 1162 cr, margin contracted 320 bps to 26.3% and net profit fell 13% to Rs 579 cr.

Maruti reported first EBITDA and net loss since 2001 at Rs -863 cr and Rs -249 cr respectively. Revenue fell 79.2% to Rs 4106 cr.

OUTLOOK

Today morning, Asian markets are trading flat to modestly higher and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 11390, the top made on 5th March, continued to be the next target/hurdle and had advised trailing stop-loss in long positions to 11115.

Nifty, after making a top of 11341, plunged to 11149 before closing at 11202.

11115 continues to be immediate support on the hourly chart.

11390, the top made on 5th March, continues to be upside target/hurdle.

Meanwhile, trading longs can be held on to with the stop-loss of 11115.

Reliance Industries and HDFC will report their quarterly earnings today.

10390 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 11115

10390 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 11115

WORLD MARKETS

US indices fell 0.6%-1.3% with Nasdaq leading the losses, digesting fresh set of corporate earnings and economic data.

McDonald’s fell 2.5% after reporting a 24% drop in comparable sales and weaker than expected profits. 3M lost 4% on unexpected drop in profits and sales.

Conference Board’s consumer confidence index for July slipped to 92.6 from June’s upwardly revised 98.3. The expected figure was 95.5.

Federal Reserve will conclude its two-day policy meeting today and will issue policy statement which will be followed by Chairman Jerome Powell's press conference. It is expected that the FOMC will remain dovish and acknowledge that the US economic outlook has deteriorated since the 11 June meeting.

Chief executives of Amazon, Apple, Facebook and Google-parent Alphabet will testify before the House Antitrust Subcommittee following a yearlong probe into their anti-competitive practices.

In the after-hours trading, Advanced Micro Devices climbed more than 9% after posting better-than-expected quarterly earnings and issuing an upbeat guidance for the year. Starbucks rose more than 5% after raising forecast for the current quarter.

Brent futures fell 19 cents, or 0.4%, to $43.22 a barrel, while WTI crude futures settled 56 cents, or 1.4%, lower at $41.04 per barrel.

In Europe, FTSE rose 0.4% while DAX ended flat and CAC fell 0.2%.   

AT HOME

Benchmark indices surged a percent and half, breaking two-day losing streak and closing at the highest level since 3rd March, marking near 5-month high. Sensex settled at 38492, up 558 points while Nifty added 168 points to finish at 11300. BSE mid-cap and small-cap indices gained 0.8% and 0.6% respectively. All the BSE sectoral indices ended in green with Auto index leading the tally, up 3.3%, followed by 2.5% higher IT index.

FIIs net bought stocks, index futures and stock futures worth Rs 246 cr, 993 cr and 363 cr respectively. DIIs were net sellers to the tune of Rs 1017 cr.

Rupee ended unchanged at 74.83/$.

Nestle's quarterly numbers missed estimates on revenue, EBITDA as well as net profit front. Revenue rose 1.7% to Rs 3050 cr, EBITDA was up 4.9% at Rs 747 cr, margins expanded 70 bps to 24.5% and net profit was up 11.2% at Rs 487 cr.

Indusind bank's NII rose 16.4% to Rs 3309 cr while net profit fell 68% to Rs 461 cr. Gross NPA ratio rose to 2.53% from 2.45% q-o-q while net NPA ratio fell to 0.86% from 0.91%. Provision rose to Rs 2259 cr from 431 cr. Moratorium number fell to 16% of loan book from 50% in April.

OUTLOOK

Today morning, Hang Seng and Shanghai are little changed while Nikkei is down 0.8%. SGX Nifty is suggesting a modestly higher start for our market.

In yesterday's report we had reiterated the view that 11244, the upper end of the gap created by gap-down opening on 6th March, continued to be immediate hurdle and that above 11244, 11390, the top made on 5th March, would be the next target/hurdle.  

Nifty crossed 11244 hurdle and surged all the way to 11317 before closing at 11300.

11390, the top made on 5th March, continues to be the next target/hurdle above which 11433, the top made on 2nd March, would be the next target.

Immediate support on the hourly chart has moved up to 11115, with the stop-loss of which, trading longs should be held on to.

Maruti, Bharti Airtel and Dr Reddy will report their quarterly earnings today.

11240-11056 CONTINUES TO BE IMMEDIATE RANGE

11240-11056 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

Nasdaq climbed 1.7% while S & P 500 and Dow rose 0.7% and 0.4% respectively on the back of surge in technology stock, US government stimulus efforts and progress over coronavirus vaccine.

Apple, Amazon, Facebook and Alphabet, all due to report earnings this week, were among the top gainers of the S&P 500.

After the market closed, U.S. Senate Majority Leader Mitch McConnell unveiled the Republican coronavirus relief plan, which would include relief for jobless Americans, another direct payment to individuals of up $1,200, more Paycheck Protection Program small business loan funds, among other provisions.

U.S. drugmaker Pfizer and German biotech firm BioNTech said they began their late-stage human trial for a potential coronavirus vaccine. Biotech firm Moderna also said it began its late-stage coronavirus vaccine trial.

Brent crude rose 7 cents to settle at $43.41 per barrel, while WTI crude settled 31 cents, or 0.75%, higher at $41.60 per barrel.

In Europe, DAX ended flat while FTSE and CAC fell 0.3% each. British government imposed a two-week quarantine on anyone returning from Spain. Germany's Ifo business climate index climbed more than expected to 90.5 in July from an upwardly revised 86.3 in June.

Earlier, data showed China’s industrial profit soared in June as the economy looks to bounce back from coronavirus-induced shutdowns.

AT HOME

Sensex and Nifty ended lower by 0.6% and 0.5% lower after rangebound but choppy session, extending the losing streak to second straight day. Sensex settled at 37934, down 194 points while Nifty lost 62 points to finish at 11131. BSE mid-cap and small-cap indices tumbled 1% each. BSE Bankex and Finance indices tumbled 3.6% and 2.4% respectively, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 2.4% and 1.8% respectively.

FIIs net sold stocks and stock futures worth Rs 453 cr and 148 cr respectively but net bought index futures worth Rs 500 cr. DIIs were net sellers to the tune of Rs 978 cr.

Rupee ended unchanged at 74.83/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.4%-0.9% and SGX Nifty is suggesting around 60 points higher start for our market.

In yesterday's report we had said that 11244, the upper end of the gap created by gap-down opening on 6th March, continued to be immediate hurdle while 11056, the bottom made on Wednesday, continued to be immediate support, with the stop-loss of which, trading longs should be held on to.

Nifty, after touching a low of 11087, closed at 11131 and is set to open near 11200 today.

11244, the upper end of the gap created by gap-down opening on 6th March, continues to be immediate hurdle. Above 11244, 11390, the top made on 5th March, would be the next target/hurdle.

11056, the bottom made on Wednesday, continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

STAY LONG WITH THE STOP-LOSS OF 11056

STAY LONG WITH THE STOP-LOSS OF 11056

WORLD MARKETS

US indices fell 0.6%-0.9% on Friday as tech shares eased and U.S.-China tensions rose.

Intel plunged more than 16% after offering disappointing guidance for the third quarter and delaying the release of its next-generation chips. Shares of Facebook, Alphabet, Apple and Microsoft all traded lower. Tesla dropped more than 6%.

China ordered the closure of a U.S. consulate in Chengdu, retaliating after Washington shut the Chinese consulate in Houston earlier this week, which it accused of being a hotspot for espionage and intellectual property theft. Shanghai Composite plunged 3.9% on Friday.

Brent crude futures settled 3 cents higher at $43.34 per barrel while WTI crude futures gained 22 cents to settle at $41.29 a barrel.

Gold surged to a record closing high, settling 0.4% higher at $1,897.50 per ounce.

European markets plunged 1.4%-2%. Eurozone flash Markit PMI for July came in at 54.8, indicating that economic activity grew for the first time since February. U.K. retail sales also came in much better than expected.

For the week, Dow and S & P 500 fell 0.7% and 0.2% respectively, snapping three-week winning streak. Nasdaq lost 1.3% for its first back-to-back weekly losses since May.

AT HOME

After falling more than a percent, Benchmark indices recouped most of the losses in late noon surge to end marginally lower. Sensex settled at 38128, down 11 points while Nifty lost 21 points to finish at 11194. BSE mid-cap and small-cap indices fell 0.6% and 0.2% respectively. BSE Metal index slipped 2.1%, becoming top loser among the sectoral indices, followed by 1.9% lower Bankex and Realty indices. Energy index climbed 2.9%, becoming top gainer, followed by 1.3% higher IT index.

FIIs net bought stocks worth Rs 410 cr but net sold index futures and stock futures worth Rs 1196 cr and 1210 cr respectively. DIIs were net sellers to the tune of Rs 1003 cr.

Rupee depreciated 7 paise to end at 74.83/$.

For the week, Sensex and Nifty gained 3% and 2.7% respectively, extending the winning streak to sixth consecutive week and closing at the highest level since the week ended 28th February, 2020.

ICICI Bank reported mixed earnings while asset quality improved. Gross NPA ratio, at 5.46%, was lowest in 18 quarters. Slippages at Rs 1160 cr, were lowest in 20 quarters.

ITC reported weak but better-than-expected earnings. Cigarette volumes fell 35-40%. Hotel revenue fell 94%.

ZEE reported 15% drop in ad revenue while subscription revenue grew 41%.

Asian Paints quarterly numbers were weak but much better than market estimates. Revenue fell 42.7% to Rs 2923 cr, EBITDA was down 58.2% at Rs 484 cr, margin contracted 610 bps to 16.6% and net profit fell 67% to Rs 220 cr.  

OUTLOOK

U.S. Treasury Secretary Steven Mnuchin yesterday said that Republicans have finalized a bill worth about $1 trillion in coronavirus relief funds.

Today morning, Hang Seng and Shanghai are up 0.8% and 0.5% respectively while Nikkei is off half a percent. SGX Nifty is suggesting around 30 points higher start for our market.

In Friday's report we had said that 11244, the upper end of the gap created by gap-down opening on 6th March, continued to be immediate hurdle and had advised trailing stop-loss in long positions to 11056.

Nifty, after touching a low of 11090, rebounded to end at 11194 and is set to open above 11200 today.

11244, the upper end of the gap created by gap-down opening on 6th March, continues to be immediate hurdle. Above 11244, 11390, the top made on 5th March, would be the next target/hurdle.

11056, the bottom made on Wednesday, continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

Kotak Mahindra Bank, Tech Mahindra and Bharti Infratel will report their quarterly earnings today.

TRAIL STOP-LOSS TO 11056

TRAIL STOP-LOSS TO 11056

WORLD MARKETS

Nasdaq plunged 2.3% while Dow and S & P 500 fell 1.3% and 1.2% respectively, as a sell-off in tech stocks and worse-than-expected jobless claims hit sentiment. S & P 500 snapped a four-day winning streak.

Microsoft shares slipped 4.3% despite reporting better-than-expected quarterly earnings. Tesla gave back its earlier gains and fell 5% despite reporting earnings that blew past analyst expectations. Apple fell 4.5%, while Amazon and Netflix dropped 3.6% and 2.5% respectively.

U.S. weekly jobless claims came in at 1.416 million for last week, higher than the expected 1.3 million figure and marking the 18th consecutive week that more than 1 million new unemployment claims have been filed.

Brent futures fell $1.01, or 2.3%, to $43.28 a barrel, while WTI crude settled 2%, or 83 cents, lower at $41.07 per barrel.

European markets ended little changed. Germany's GfK consumer confidence reading rose to -0.3 for August compared to -9.4 in July.

AT HOME

Bulls were back after yesterday's pause as benchmark indices climbed seven tenth of a percent to close at the highest level since 5th March, marking a fresh four and a half month high. Sensex gained 268 points to settle at 38140 while Nifty finished at 11215, up 82 points. BSE mid-cap and small-cap indices gained 1% and 0.6% respectively. BSE Energy index soared 2.4%, becoming top gainer among the sectoral indices, followed by 1.6% higher Healthcare and Realty indices. IT and Teck indices were the top losers, down 0.6% each.

FIIs net bought stocks and index futures worth Rs 1740 cr and 220 cr respectively but net sold stock futures worth Rs 1281 cr. DIIs were net buyers to the tune of RS 186 cr.

Rupee ended unchanged at 74.76/$.

OUTLOOK

Nikkei continues to be shut while Hang Seng and Shanghai are down 1.2% and 0.7% respectively. SGX Nifty is suggesting about 40 points lower start for our market.

Just to reiterate, we had turned our view on Nifty bullish after 11894 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

In yesterday's report we had said that 11238, the top made Wednesday, also coincided with the upper end of the gap, created by gap-down opening on 6th March and hence was the immediate hurdle to eye. 

Nifty yesterday soared to touch a high of 11239 before closing at 11215 and is set to open below 11200 today.

11244, the upper end of the gap created by gap-down opening on 6th March, continues to be immediate hurdle. Above 11244, 11390, the top made on 5th March, would be the next target/hurdle.

11056, the bottom made on Wednesday, is the immediate support to watch out now, with the stop-loss of which, trading longs should be held on to.

ITC, Asian Paints, JSW Steel and ZEEL will report their quarterly earnings today.

NIFTY RETREATS AFTER ACHIEVING 11225 TARGET; TRAIL STOP-LOSS TO 10895

NIFTY RETREATS AFTER ACHIEVING 11225 TARGET; TRAIL STOP-LOSS TO 10895

WORLD MARKETS

Dow and S & P 500 rose 0.6% each while Nasdaq gained 0.2%, as hopes of more fiscal stimulus and optimism about coronavirus vaccine overshadowed concerns about escalating US-China tensions.

The U.S. agreed to pay Pfizer and German-partner BioNTech $1.95 billion to produce 100 million coronavirus vaccines if it proves to be safe and effective.

Media reports suggested that Republicans are considering extending current unemployment benefits at $400 per month through December. Current unemployment benefit stands at $600 per week.

Stocks had started on a cautious note after the U.S. State Department abruptly ordered China to close its consulate in Houston. China warned of firm countermeasures if the U.S. does not reverse its decision.

Shares of Snap dropped 6% after the social media company reported fewer-than-expected daily active users. Shares of United Airlines dipped 4.2% after the company reported a net loss of $1.62 billion for the second quarter.

Brent crude fell 3 cents to settle at $44.29 per barrel while WTI settled 2 cents lower at $41.90 per barrel.

European markets fell 0.5%-1.3%.

AT HOME

Benchmark indices ended modestly lower after a choppy session, snapping 5-day winning streak. Sensex settled at 37871, down 58 points while Nifty lost 29 points to finish at 11132. BSE mid-cap index rose 0.2% while small-cap index fell 0.2%. BSE IT and Auto indices slipped 1.4% and 1.3% respectively, becoming top losers among the sectoral indices while Consumer Durables index soared 2.2%, becoming top gainer, followed by 1.2% higher Utilities and Power indices.

FIIs net bought stocks and index futures worth Rs 1666 cr and 337 cr respectively but net sold stock futures worth Rs 362 cr. DIIs were net sellers to the tune of Rs 1139 cr.

Rupee ended unchanged at 74.75/$.

L & T reported weaker-than-expected operational performance as EBIDTA fell 47% and margins contracted from 10.3% to 7.6%. Revenue fell 28% and order inflow fell 39%. Management commentary was also cautious.

Bajaj Auto's Q1 topline and bottomline were largely in-line with expectation while operating performance was a beat. Revenue fell 60% y-o-y to Rs 3079 cr, EBITDA fell 66% to Rs 408 cr, margin contracted 210 bps to 13.3% and profit fell 53% to Rs 528 cr.

OUTLOOK

Today, Nikkei is closed, Shanghai is flat while Hang Seng is up 1%. SGX Nifty is suggesting around 30 points higher start for our market.

Readers would recall that we had turned our view on Nifty bullish after 11894 was taken out and have been advising holding on to long positions with a trailing stop-loss.

In yesterday's report we had said that 11225 is the next upside target to eye.

Nifty, after touching a high of 11238 in the initial trade, slipped to end at 11132 and is set to open above 11150 today.

11238, the top made yesterday, also coincided with the upper end of the gap, created by gap-down opening on 6th March and hence is the immediate hurdle to eye. Above 11238, 11390, the top made on 5th March, would be the next target/hurdle.

Immediate support on the hourly chart has moved up to 10895, with the stop-loss of which, trading longs can be held on to.

NIFTY ACHIEVES 11160 TARGET; TRAIL STOP-LOSS TO 10860

NIFTY ACHIEVES 11160 TARGET; TRAIL STOP-LOSS TO 10860

WORLD MARKETS

Dow and S & P 500 rose 0.6% and 0.2% respectively while Nasdaq fell 0.8% as Energy stocks gained while tech stocks eased.

Chevron and Exxon Mobil surged 7% and 5%, respectively, as oil rose to its highest level since March. On the other hand Facebook, Amazon Apple, Netflix and Google-parent Alphabet all closed lower.

Meanwhile coronavirus related hospitalizations continue to surge in 34 states across the United States. Texas and Florida hit a record Monday for daily coronavirus deaths based on a seven-day moving average.

Shares of Snap and United Airlines dipped in extended trading on the back of disappointing earnings.

Brent crude rose $1.37, or 3.2%, to $44.65 while WTI crude gained 2.8%, or $1.15, to settle at $41.96 per barrel, the highest level since March.

European markets gained 0.1%-1%. EU leaders reached a deal on a 750 billion euro recovery fund to help the region recover from the coronavirus crisis.

Lifted by an agreement on a fiscal rescue plan by European leaders and expectations for additional spending by the U.S. government, Gold futures rose $26.50, or 1.5%, to settle at $1,843.90 an ounce, a near 9-year high. Silver closed at the highest level since 2014.

AT HOME

Bull Stampede continued as Sensex and Nifty soared 1.4% and 1.3% respectively, extending the winning streak to fifth consecutive day and closing at the highest level since 5th March. Sensex settled at 37930, up 511 points while Nifty added 140 points to finish at 11162. Broader market however underperformed as BSE mid-cap index fell 0.2% while small-cap index rose just 0.2%. Energy and Oil & Gas indices climbed 2.7% each, becoming top gainers among the sectoral indices while Telecom index slipped 1.8%, becoming top loser, followed by 0.7% lower FMCG index.

FIIs net bought stocks and index futurs worth Rs 2266 cr and 857 cr respectively but net sold stock futures worth Rs 643 cr. DIIs were net sellers to the tune of Rs 727 cr.

Rupee appreciated 17 paise to end at 74.75/$.

Shares of Oil Marketing Companies rose amid reports of global companies showing interest in BPCL stake.

AXIS Bank reported better-than-expected numbers. Net profit fell 18.8% y-o-y due to lower fee income and higher provisions. NII rose 19.5%, its best in 5 quarters. Gross NPA ratio improved to 4.72% from 4.86% q-o-q and stood at 15 quarter low. Net NPA ratio improved to 1.23% from 1.56%. Slippages, at Rs 2218 cr, were the lowest in 17 quarters. Watchlist stood at Rs 10753 cr v/s Rs 10996 cr. Moratorium book fell to 9.7% from 25-28%.

HUL's Q1 volume, net profit, revenue and EBITDA came in above estimates while operating margin were in-line. Volume contracted by 8% v/s expected decline of 11-13%. Gross margin dipped by 220 bps y-o-y.

Bajaj Finance reported a 19% y-o-y fall in consolidated net profit at ₹962 crore for the first quarter of the current fiscal on higher provisioning. Net interest income rose 12% to Rs 4152 cr.  Gross NPA ratio improved to 1.4% from 1.61% q-o-q while Net NPA ratio improved to 0.50% from 0.54%.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.8% and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 11160, where an upward sloping trendline adjoining recent tops on the daily chart is placed, would be the next target to eye and had advised holding on to long positions with the stop-loss of 11780.

Nifty soared to touch a high of 11179 before closing at 11162, achieving 11160 target and vindicating our view.

11225 is the next upside target to eye.

Immediate support on the hourly chart has moved up to 10860, with the stop-loss of which, trading longs should be held on to.

L & T and Bajaj Auto will report their quarterly earnings today.

11160 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 10780

11160 IS THE NEXT TARGET; TRAIL STOP-LOSS TO 10780

WORLD MARKETS

Nasdaq soared 2.5%, S & P 500 rose 0.8% while Dow ended flat as technology stocks surged. A slew of positive news on the vaccine front also aided the sentiment. S & P 500 turned positive for the year.

Amazon led the tech stocks higher, rising 7.9% for its best day since December 2018. IBM gained 4.7% in extended trading after the company reported better-than-expected second-quarter earnings. N

Pfizer and BioNTech reported early positive data on a joint coronavirus vaccine candidate. Another candidate from Oxford University and AstraZeneca also showed a positive immune response in an early trial.

Brent crude rose 15 cents, or 0.4%, to $43.29 per barrel, while West Texas Intermediate rose 22 cents, or 0.54%, to settle at $40.81 per barrel.

In Europe, FTSE fell half a percent while DAX and CAC gained 1% and 0.5% respectively.

AT HOME

Sensex and Nifty soared 1.1% each, extending the winning streak to fourth consecutive day and closing at the highest level since 6th March and 5th March respectively. Sensex settled at 37418, up 398 points while Nifty added 120 points to finish at 11022. BSE mid-cap and small-cap indices gained 0.9% and 1% respectively. BSE IT and Teck indices climbed 2.3% and 2.2% respectively, becoming top gainers among the sectoral indices while Healthcare and Power indices were the top losers, down 0.7% and 0.2% respectively.

FIIs net bought stocks worth Rs 1710 cr but net sold index futures and stock futures worth Rs 68 cr and 275 cr respectively. DIIs were net sellers to the tune of Rs 1522 cr.

Rupee appreciated 9 paise to end at 74.92/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.4%-1.6% and SGX Nifty is suggesting around 90 points higher start for our market.

In yesterday's report we had said that upon crossover of 10933, 11075, which is the target of the triangle breakout witnessed on Friday, would be the next level to eye and had advised holding on to long positions with the stop-loss of 10740.

Nifty crossed 10933 hurdle and surged all the way to 11038 before closing at 11022 and is set to open near 11100 today.

Today’s higher start will achieve 11075 that we talked above. Next target to watch out would be  11160, where an upward sloping trendline adjoining recent tops on the daily chart is placed.

Immediate support on the hourly chart has moved up to 11780, with the stop-loss of which, trading longs should be held on to.

HUL, Axis Bank, Bajaj Finance and Bajaj Finserve will report their quarterly earnings today.

11075 ABOVE 10936; 10740 IS IMMEDIATE SUPPORT

11075 ABOVE 10936; 10740 IS IMMEDIATE SUPPORT

WORLD MARKETS

Dow fell 0.2% but S & P 500 and Nasdaq gained 0.3% each on Friday, reacting to disappointing consumer sentiment data and gauging the potential for additional fiscal stimulus in the U.S. and Europe while COVID-19 cases continue to climb.

U.S. consumer sentiment index fell to 73.2 in July from 78.1, compared with expectations for a reading of 78.6. U.S. housing starts came in at a 1.19 million seasonally adjusted annual rate in June, nearly meeting the consensus forecast.

The U.S. posted a record of more than 70,000 new coronavirus cases in a single day Friday, the highest reported by any country since the start of the outbreak.

The Federal Reserve on Friday announced it had expanded its Main Street Lending Program to include nonprofit organizations. European Union leaders on Friday kicked off a two-day summit aimed at reaching an agreement on a €750 billion recovery fund.

Netflix plunged 6.5% after second-quarter earnings missed expectations and company issued weak guidance for third-quarter subscriber growth.

Media reports suggested that the U.S. President Donald Trump’s administration is considering banning travel stateside by all members of the Chinese Communist Party and their families.

Brent futures fell 24 cents to $43.13 a barrel while WTI crude settled 16 cents lower at $40.59 per barrel.

In Europe, FTSE and DAX rose 0.6% and 0.4% respectively but CAC fell 0.3%.

For the week, Dow and S & P 500 rose 2.3% and 1.3% respectively while Nasdaq lost 1.1%. Main European markets gained 2%-3.2%. In Asia, Shanghai and Hang Seng slipped 5% and 2.5% respectively while Nikkei and Nifty gained 1.8% and 1.2% respectively.

AT HOME

It turned out to be the best day of the week as benchamark indices soared 1.5% each to close at the highest level since 6th March, marking a near  four and a half month high. Sensex settled at 37020, up 548 points while Nifty added 161 points to finish at 10901. BSE mid-cap and small-cap indices rose 1.6% and 1.1% respectively. Except 0.9% and 0.4% lower IT and Teck indices respectively, all the BSE sectroal indices ended in green with Power and Energy indices leading the tally, up 5% and 4% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 697 cr, 652 cr and 294 cr respectively. DIIs were net sellers to the tune of Rs 209 cr.

Rupee appreciated 17 paise to end at 75.01/$.

HDFC Bank reported mixed set of earnings. Net NPA ratio improved a 14-quarter low of 0.33% from 0.36% q-o-q. 20% Loan growth stood at healthy 20% and moratorium, at 9%, was the lowest in the industry. Management commentary was also positive. On the flip side, there was 9% rise in Gross NPAs. Retail loan growth rose just 7.2% y-o-y and declined 3.9% q-o-q and was at lowest ever. Return on Asset, at 1.76%, was the lowest in 20-quarters.

For the week, Sensex and Nifty gained 1.2% each, extending the winning streak to fifth consecutive week.

OUTLOOK

Today morning, Shanghai is up 0.9% but Hang Seng and Nikkei are off 0.7% and 0.4% respectively. SGX Nifty is suggesting around 30 points lower start for our market.

In Friday's report we had said that 10827, the top made on Wednesday, was the immediate hurdle, upon crossover of which 10894, the top made Monday, would be bigger hurdle to eye.

Nifty, after crossing 10827 hurdle, went further to conquer 10894 hurdle and made a high of 10933 before closing at 10901.

10933, the top made Friday, also coincided with the 34-month moving average placed around 10936. Upon crossover of 10933, 11075, which is the target of the triangle breakout witnessed on Friday, would be the next level to eye.

10740 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.