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.