NIFTY EXTENDS FALL TO SEVENTH STRAIGHT DAY; DELHI POLL RESULTS IN FOCUS

NIFTY EXTENDS FALL TO SEVENTH STRAIGHT DAY; DELHI POLL RESULTS IN FOCUS

WORLD MARKETS                             

US indices fell between 0.4%-0.5% yesterday as concerns about Greece continued to weigh and the crisis in Ukraine re-escalated.

Greece's new leftist Prime Minister Alexis Tsipras, in his election pledge on Sunday, said that he would end the country's "cruel" austerity program and ruled out an extension of international bailout. Starting Wednesday, Greek banks will not be able to use Greek government bonds as collateral in daily refinancing operations with the European Central Bank.

German Chancellor Angela Merkel met with President Barack Obama in Washington yesterday to discuss a solution to the crisis in Ukraine, where violence between pro-Russian separatists and the Ukraine military has intensified, forcing many civilians in the east of the country to flee their homes.

Nymex oil climbed $1.17 or 2.3% to $52.86 a barrel after the Organization of the Petroleum Exporting Countries (OPEC) hiked its demand forecast for 2015, predicting that low prices would help boost demand later in the year

Over the weekend, China reported that exports fell 3.3% in January, while imports slumped by 19.9%, both missing expectations by a wide margin, and resulting in a record monthly trade surplus of $60 billion.

European markets fell between 0.2%-2%. Greece plunged 5%.

AT HOME

Benchmark indices, after a gap down opening, extended the fall through rest of the session to end with deep cuts of more than a percent and half, extending the losing streak to seventh straight day. Sensex plunged 491 points to settle at 28227 while Nifty finished at 8526, down 135 points. BSE mid-cap and small-cap indices lost 1.4% and 1.5% respectively. All the BSE sectoral indices ended in red with Capital Goods index leading the tally, falling 4.3%, followed by 2.7% cut in Realty index.

LT collapsed after December quarter earnings disappointed with profit falling 14.6% y-o-y to Rs 1060 cr while revenues rose 4.2% to Rs 14995 cr. Expected figures were Rs 1255 cr and Rs 15973 cr. Operating profit dropped 6.3% to Rs 1569 cr and margin declined 110 bps to 10.5%, as against expectation of Rs 1826 cr and 11.4% respectively. The company also lowered order flow guidance to 15-20% from 20%.

FIIs net sold stocks, index futures and stock futures worth Rs 660 cr, 1793 cr and 198 cr respectively. DIIs were net buyers to the tune of Rs 470 cr.

Rupee plunged 47 paise to end at four-week low of 62.16/$.

Government yesterday released GDP growth data according to new method yesterday according to which GDP is expected to grow at 7.4% this fiscal compared to 6.9% in the previous year. New method calculates GDP at market price instead of factor cost. The government has also moved the base from 2005-06 to 2011-12 to reflect structural changes in the economy. Under the new method, GDP growth in the first three quarters stood at 6.5%, 8.2% and 7.5% respectively.

OUTLOOK

China's CPI for January is up 0.3% month-on-month and 0.8% y-o-y, which is lower than the estimates if 1% y-o-y growth. PPI is down 1.1% m-o-m and 4.3% y-o-y as against estimated 3.8% fall y-o-y.

Asian markets are trading mixed with modest changes but SGX Nifty is suggesting about 50 points lower opening for our market.

Just to reiterate we, have maintained negative bias on Nifty ever since 8850, the immediate support on the hourly chart, was broken on 30th January and have been advising holding on to short positions with a trailing stop loss. We had given an initial downside target of 8640, which was the 38.2% retracement level of the 8065-8997 upmove seen in January.

In yesterday's report we had mentioned that below 8640, 8530-8500 would be the next support area where 8530 is the 50% retracement level of the 8065-8997 upmove while 8500 is where the 34-DMA is placed.

The benchmark plunged to 8526 yesterday and is set to open further lower today which would see even 34-DMA being tested.

Next support to eye would be 8420, which is the 61.8% retracement level of the 8065-8997 upmove.

Immediate resistance on the hourly chart has moved lower to 8700, with the stop loss of which trading shorts can be held on to.

Counting of votes for Delhi assembly elections will take place today.

NIFTY SET TO OPEN LOWER ON EXIT POLLS, GLOBAL WEAKNESS; 8530 IS THE NEXT SUPPORT

NIFTY SET TO OPEN LOWER ON EXIT POLLS, GLOBAL WEAKNESS; 8530 IS THE NEXT SUPPORT

WORLD MARKETS

After moving higher in the initial trade on the back of solid jobs report, US indices saw a sustained downward mover through rest of the session to end lower by 0.3%-0.4% on concerns over the possibility of an earlier Fed rate hike and continued concerns over Greece.

The Labor Department said the United States created 257,000 jobs in January, beating estimates of about 230,000. More importantly, average hourly earnings grew by 0.5%, above estimates. The unemployment rate rose to 5.7%, slightly above estimates.

Rating agency S & P downgraded its rating on Greece to "B-" from "B".

Nymex crude rose $1.21 to $51.69 a barrel and Brent gained $1.23 to $57.80. Gold plunged 2.28% to $1235 an ounce.

European equities, except a modestly higher Spain, ended with cuts of upto half a percent after Greece's talks with Germany—the euro zone's largest economy—over the future of its bailout program had mixed success.

For the week however, Dow climbed 3.84%, its best week since January 2013. S & P 500 gained 3.03% and Nasdaq was up 2.4%. European markets too gained between 1.4%-1.9%.

Data released on Sunday showed that China's exports fell 3.3% y-o-y in January while imports tumbled 19.9%, below expectations.

                                                             

AT HOME

Benchmark indices fell nearly half a percent today, extending the losing streak to sixth straight day and ending at the lowest level since 19th January. Sensex lost 133 points to settle at 28718 while Nifty finished at 8661, down 51 points. BSE mid-cap and small-cap indices lost 1.1% and 1.8% respectively. BSE Auto and Healthcare indices tumbled 2.8% and 1.7% respectively, becoming top losers among the sectoral indices, while IT and FMCG indices gained 0.9% and 0.8% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 96 cr, 1180 cr and 369 cr respectively. DIIs were net buyers to the tune of Rs 115 cr.

Rupee appreciated 3 paise to end at 61.695/$.

For the week, Nifty and Sensex lost 1.7% and 1.6% respectively.

Tata Steel reported missed estimates by reporting 68.7% fall in December quarter net profit at Rs 157.1 cr thanks to weakness in Indian and South East operations, even as its European business continued to do well. Revenues fell 8.4% to Rs 33633 cr. Operating profit fell 21.2% to Rs 3077 cr. Operating margin fell to 9.1% from 10.9%.

Voting for Delhi assembly election was held yesterday. Exit polls predicted an emphatic victory for the Arvind Kejriwal-led Aam Admi Party (AAP), which if confirmed by the actual results on Tuesday, would mean the first significant political setback for PM Narendra Modi since the BJP's sweeping victory in Parliamentary polls in May 2014.

OUTLOOK

Today morning except a modestly higher Nikkei, other Asian markets are trading with cuts in the vicinity of half a percent and SGX Nifty is suggesting about 75 points lower opening for our market.

Readers would recall that we have been maintaining our negative bias on Nifty since 8850 was broken on 30th January. We were working with a downside target of 8640, which is the 38.2% retracement level of the 8065-8997 upmove seen in January.

The benchmark touched a low of 8645 on Friday, nearly achieving this target and vindicating our view.

Nifty however is set to open with a downward gap today which will result in the breach of 8640 support. Next level to watch in that case would be 8530, the 50% retracement level of the 8065-8997 upmove. Also you have 34-DMA placed around 8500, which makes region in the vicinity of 8500 a crucial support area.

On the way up, immediate resistance on the hourly chart has moved lower to around 8740, with the stop loss of which short positions can be held on to.

Government will release advance estimates of GDP for 2014-15, as well as for the first three quarters of the current financial year - on the basis of the revised method.

LT and DLF will report their quarterly earnings today.

BOOK PROFIT IN SHORTS AS 8640 APPROACHES

BOOK PROFIT IN SHORTS AS 8640 APPROACHES

WORLD MARKETS

US indices surged between 1%-1.2% yesterday, turning green for the 2015.

Nymex oil rose $2.03 to $50.48 a barrel as falling output and rising violence in Libya, along with central bank easing in China, helped the commodity rebound from one of its sharpest daily routs ever in the previous session. Brent also gained 4% to $56 a barrel.

Weekly jobless claims came in at 278,000, below estimates of 290,000 and above last week's 267,000 figure. Non-farm productivity, which measures hourly output per worker, fell a greater-than-expected 1.8% for the fourth quarter. US trade deficit jumped 17.1% to $46.6 billion in December, the largest since November 2012. The number of planned layoffs by U.S. employers rose to a nearly two-year high in January as the energy industry slashed jobs in the face of falling oil prices.

Europe was mixed with FTSE and CAC ending marginally higher while DAX, Italy and Spain closing lower. Greece ended over 3% lower and banking stocks there plunged upto 23% after the ECB Wednesday took a hard line on Greek debt, revoking a waiver that allowed banks to use Greek government debt as collateral for loans.

                                                             

AT HOME

After rising more than a percent, benchmark indices lost more than they had gained in the steep last hour fall to end modestly lower, extending the losing streak to fifth day. Sensex settled at 28851, down 32 points while Nifty lost 12 points to finish at 8712. BSE mid-cap and small-cap indices lost 1.3% each. BSE Power and Realty indices tumbled 2.8% each, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, putting on 2.1% and 1.3% respectively.

FIIs net sold stocks and index futures worth Rs 27 cr and 576 cr respectively but net bought stock futures worth Rs 275 cr. DIIs were net buyers to the tune of Rs 326 cr.

Rupee appreciated 2 paise to end at 61.73/$.

Tata Motors reported a 25% fall in quarterly profit at Rs 3581 cr and missed street expectations due to losses in its domestic business, unfavorable foreign exchange rates and a dip in sales at its Jaguar Land Rover unit. Sales rose 8.6% to Rs 69942 cr.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 20 points lower opening for our market.

Just to reiterate, we have been working with the downside target of 8640, which is the 38.2% retracement level of the 8065-8997 upmove, ever since Nifty broke immediate support of 8850 last Friday. The benchmark has traded with a negative bias since then and touched a low of 8684 yesterday before closing at 8712, moving closer to the 8640 target.

Today, a lower opening would take Nifty closer to the 8640 mark, where profits in short positions can be booked. Long position however should be taken only after the benchmark sustains above immediate resistance on the hourly chart placed around 8810.

Tata Steel and NMDC will report their quarterly earnings today.

Key data to watch would be the US non-farm payroll report which is expected to show creation of 234,000 jobs in January, versus 252,000 jobs in December.

NIFTY ON TRACK TO ACHIEVE 8640 TARGET; TRAIL STOP LOSS TO 8810

NIFTY ON TRACK TO ACHIEVE 8640 TARGET; TRAIL STOP LOSS TO 8810

WORLD MARKETS                             

US indices ended flat to modestly lower after a choppy trading session on news that the European Central Bank revoked a waiver that allowed banks to use Greek government debt as collateral for loans.

After climbing 7% on Tuesday, Nymex crude plunged 8.7% to below $48.45 a barrel, after U.S. crude inventories jumped to a record high, shifting the global glut back in to focus. Brent fell $4 to $54 a barrel.

The ISM non-manufacturing Index for January came in at 56.7, a slight increase from December. The ADP Employment report, which is seen as a precursor to Friday's important jobs report, showed January payrolls increased by 213,000, below estimates of 225,000.

China's central bank cut the reserve requirement ratio by 50 bps to 19.5%, marking the first cut since May 2012, in a bid to boost the slowing economy.

European markets ended mixed with modest changes. Greek banks soared after the country's finance minister, Yanis Varoufakis, proposed a debt swap that will replace outstanding debt with new growth-linked bonds.

AT HOME

Benchmark indices ended lower by four tenth of a percent after a choppy trading session, extending the losing streak to fourth straight session and closing at the lowest level since 21st January. Sensex lost 117 points to settle at 28883 while Nifty finished at 8724, down 33 points. BSE mid-cap index lost 0.2% while the small-cap index ended marginally in the green. BSE Metal index soared 2.1%, becoming top gainer among the sectoral indices, followed by 1% rise in Realty index. Capital Goods index and Bankex were the top losers, giving away 1.9% and 1.2% respectively.

FIIs net sold stocks and stock futures worth Rs 84 cr and 877 cr respectively but net bought index futures worth Rs 221 cr. DIIs were net sellers to the tune of Rs 72 cr.

Rupee depreciated 9 paise to end at 61.75/$.

India's HSBC services PMI for January came in at 52.4, up from 51.1 in January. The composite PMI too improved to 53.3 from 52.9.

Cognizant reported better-than-estimated 6.2% q-o-q growth in revenues at $2.74 bn.

OUTLOOK

Today morning, Shanghai and Hang Seng are up about a percent but other Asian markets are down in the vicinity of half a percent and SGX Nifty is suggesting about 10 points lower opening for our market.

We have maintained our bearish stance ever since Nifty broke 8850, the immediate support on the hourly chart, on last Friday. Also, we have been working with an immediate downside target of 8640, which is the 38.2% retracement level of the 8065-8997 upmove.

The benchmark has since then has been gradually moving lower and touched a low of 8704 yesterday, moving towards the downside target mentioned above.

8640 continues to be the immediate downside target. Immediate resistance on the hourly chart has moved lower to 8810, with the stop loss of which trading shorts can be held on to.

Tata Motors will report its quarterly earnings today.

CRUDE CLIMBS 7% TO ERASE 2015 LOSSES; NIFTY EXTENDS CORRECTION AS EXPECTED

CRUDE CLIMBS 7% TO ERASE 2015 LOSSES; NIFTY EXTENDS CORRECTION AS EXPECTED

WORLD MARKETS                             

US indices surged between 1.1%-1.8%, extending gains to second day, boosted by a surge in oil prices and alleviation of concerns in the euro zone.

Oil extended the past few days' gains to settle up $3.48, a 7% surge, to $53.05 a barrel, the highest settlement of 2015. BP's announcement that it would cut capital expenditure by 13% to $20 billion in 2015, adding to reductions planned by other major energy companies, fueled the perception that the global glut in oil supply may be overcome faster than thought. Brent gained $3 to $58 a barrel. Nymex crude is now up 22% from its intraday low of $43.58 last Thursday.

Media reports on Monday suggested that Greece's Finance Minister Yanis Varoufakis unveiled proposals to end the confrontation with its creditors by swapping outstanding debt for new growth-linked bonds. Yesterday, Varoufakis met with his Italian counterpart in Rome. Greek stocks rose 11% yesterday.

Back in the US, factory orders for December posted a greater-than-expected decline of 3.4%. January auto sales topped expectations.

European markets gained between 0.6%-2.6% with Spain and Italy leading the tally thanks to a rally in the energy and basic resources sectors and a degree of relief over Greece's latest plans to renegotiate its debt.

Mining stocks with exposure to Australia surged higher after the Reserve Bank of Australia yesterday cut rates for the first time since August 2013 as it attempts to support an economy hit by falling commodity prices.

AT HOME

After a positive start, benchmark indices saw bouts of selling through the session and finally ended lower by nearly half a percent, extending the losing streak to third straight day. Sensex settled at 2900, down 122 points while Nifty lost 41 points to finish at 8757. BSE mid-cap and small-cap indices lost 0.3% each. BSE Bankex plunged 2.6%, becoming top loser among the sectoral indices, followed by 1.4% cut in the Realty index. Oil & Gas and FMCG indices were the top gainers, putting on 2% and 1.1% respectively.

RBI, in its sixth bi-monthly policy review, left key rates unchanged as expected while announcing a 50 bps cut in SLR to 21.5%. Governor Raja said that the RBI will wait for data like upcoming GDP numbers, inflation numbers and the Union Budget for future actions.

FIIs net sold stocks, index futures and stock futures worth Rs 264 cr, 474 cr and 1550 cr respectively. DIIs were net sellers to the tune of Rs 137 cr.

Rupee appreciated 13 paise to end at 61.665/$.

PNB plunged 8.3% after reporting worse than expected earnings and deterioration in the asset quality. Net profit rose just 2.5% y-o-y to Rs 774.6 cr. NII remained almost flat at Rs 4233 cr. Gross NPAs rose 32 bps sequentially to 5.97% while Net NPAs climbed 56 bps to 3.82%.

Lupin reported 26.3% rise in consolidated net profit at Rs 601 cr on account of robust sales and improved operational efficiencies.

Hero MotoCorp reported lesser-than-expected 11% net profit growth at Rs 583 cr on revenues of Rs 6839 cr.

Oil marketing companies cut petrol and diesel prices by Rs 2.42 and 2.25 per liter, marking the 10th straight cut since oil price started turning lower in mid 2014.

OUTLOOK

China's HSBC services PMI for January has come in at 51.8, slowing down from 53.4 month-on-month and touching a six-month low.

Nikkei is up nearly 2%, Other Asian markets are up in the vicinity of half a percent and SGX Nifty is suggesting about 50 points higher opening for our market.

Ever since Nifty achieved big target of 9000, we have been vouching for some consolidation/correction in the backdrop of big surge seen in January and the benchmark getting resisted by an upward sloping trendline adjoining recent tops on weekly chart.

We have been working with the downside target of around 8640 where the trendline adjoining recent bottoms on the daily chart as well as the 38.2% retracement level of the 8065-8997 upmove are placed.

Nifty touched a low of 8726 yesterday before closing at 8756, moving towards this target.

The trendline support mentioned above has now moved up to 8720 which makes 8720-8640 a broad support area.

On the way up, immediate resistance on the hourly chart is placed around 8850 followed by 61.8% retracement level of recent 8997-8726 fall placed at 8893. This makes 8850-8900 immediate resistance area. Traders can square off short positions if Nifty sustains above 8850.

India's HSBC Services PMI for January will be released today. In December, index stood at 51.1, down from 52.6 in November.

Aurobindo Pharma, Bharti Airtel, Tata Power and Wockhardt will report their quarterly earnings today.

US MARKETS SURGE ON OIL REBOUND, GREEK NEWS; RBI IN FOCUS AT HOME

US MARKETS SURGE ON OIL REBOUND, GREEK NEWS; RBI IN FOCUS AT HOME

WORLD MARKETS

US indices, after starting in the negative territory, climbed nearly 2% from the bottom of the day to end with gains raging from 0.9%-1.3% on encouraging news from the Eurozone and stronger oil prices.

Media reports suggested that Greece's financial minister revealed a plan to end confrontation with its creditors.

Nymex crude gained $1.33 to $49.57 a barrel, its highest in nearly a month while Brent gained $1.44 to $54.50 a barrel.

Back in the US, ISM manufacturing index hit 53.5 in January 2015, below expectations of 54.5, the weakest reading since January last year. U.S. consumer spending fell 0.3% in December, recording its biggest decline since late 2009, with households appearing to save the extra cash from cheaper gasoline, which could support future consumption.

In Europe, FTSE, CAC and DAX gained between 0.5%-1.2% while Italy and Spain ended lower. Eurozone final manufacturing PMI for January came in at 51, which was in line with a previous estimate.

                                                             

AT HOME

After falling nearly two third of a percent in the morning trade, benchmark indices recovered in the noon trade to end just modestly lower. Sensex lost 61 points to settle at 29122 while Nifty finished at 8797, down 12 points. BSE mid-cap and small-cap indices however climbed 0.6% and 1.1% respectively. BSE FMCG and Oil & Gas indices lost the most among the sectoral indices, giving away 1.8% and 0.5% respectively while Capital Goods and IT indices gained 1.2% and 1% respectively, becoming top gainers.

FIIs net sold stocks, index futures and stock futures worth Rs 630 cr, 3 cr and 1887 cr respectively. DIIs were net sellers to the tune of Rs 224 cr.

Rupee appreciated 6 paise to end at 61.795/$.

Maruti reported 13.7% y-o-y rise in January sales at 1.16 lakh units. TVS Motor sold 1.88 lakh units. Bajaj Auto on the other hand reported 9% dip at 2.88 lakh units. M & M too reported 6% fall at 39930 units. TVS Motors reported 1.1% rise at 1.88 lakh units. Hero MotoCorp reported 0.4% fall at 5.59 lakh units.

India's HSBC manufacturing PMI for January slipped to a three month low of 52.9 vs 54.5 in December.

The growth of core sector, comprising of eight key infrastructure industries, slowed to a three-month low of 2.4% in December, compared with 6.7% in November.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 25 points higher opening for our market.

Key event to watch today would be RBI's policy review. Governor Rajan had surprised the market with an out of turn repo rate cut of 25 bps on January 15. Expectation is that the next rate cut would happen post the Union Budget rather than in today’s review. Focus would be on the tone and guidance of the policy which is expected to be dovish.

After Nifty nearly achieved the major 9000 target, we had said that the immediate support on the hourly chart is placed at 8850, a breach of which would generate a sell on the hourly chart and would pave the way for the further correction. The benchmark broke 8850 support on Friday and slipped further to 8751 yesterday before rebounding to end at 8797.

8900, the 61.8% retracement level of the recent 8997-8751 fall, is the immediate resistance to eye, a crossover of which is required to put bulls back in the dominating position. On the way down 8640, the 38.2% retracement level of the 8065-8997 upmove, would be immediate support to eye.

Hero Motocorp, PNB and ACC will report their quarterly earnings today.

PROFIT BOOKING SETS IN AFTER NEARLY ACHIEVING 9000 TARGET; STAY SHORT WITH THE STOP LOSS OF 8870

PROFIT BOOKING SETS IN AFTER NEARLY ACHIEVING 9000 TARGET; STAY SHORT WITH THE STOP LOSS OF 8870

WORLD MARKETS                             

US indices tumbled between 1%-1.4% on Friday, after data showed U.S. economic growth slowed sharply in the fourth quarter.

The growth came in at 2.6%, sharply lower than third quarter's 5% figure and was also lower than the estimated 3% rate.

U.S. consumer sentiment climbed in January to its highest in 11 years.

Nymex crude climbed $3.71 or 8% to $48.24 a barrel, registering best day since June 2012 after data showed U.S. drillers made further cuts to capital expenditures and took more rigs offline. Brent settled up $3.86 at $52.99. Gold gained $24 or 2% to $1278 an ounce.

Russia's central bank cut its key interest rate to 15 percent, just one month after a surprise hike, amid calls from government officials and business leaders for a cut to stimulate growth in the country's sanctions-hit economy.

European markets fell between 0.4%-1% with investors reacting to earnings and euro zone inflation and unemployment reports. Eurozone inflation came in at negative 0.6% in January, below the 0.5% forecast and worse than December's 0.2% fall. Eurozone unemployment fell to 11.4 percent in December, down from 11.5 percent in November and marking the lowest rate recorded in the region since mid-2012.

Greek government said it would not seek an extension of the bailout program with the European Union and the International Monetary Fund.

For the week, US indices lost between 2.6%-2.9%. European markets, except a 0.4% gain in DAX, lost between 0.8%-1.7%.

AT HOME

After opening higher by nearly half a percent, benchmark indices saw a sustained downward move through the session and finally ended with steep cuts of more than a percent and half, with Nifty breaking 10-day winning streak. Sensex plunged 500 points to settle at 29183 while Nifty finished at 8809, down 143 points. BSE mid-cap and small-cap indices lost 0.3% and 0.4% respectively. BSE Bankex tumbled 3.1%, becoming top loser among the sectoral indices, followed by 1.8% cut in Consumer Durable index. Realty index climbed 2.2%, becoming top gainer, followed by 0.9% rise in Power index.

Rupee ended unchanged at 61.86/$.

FIIs net sold stocks and stock futures worth Rs 772 cr and 1608 cr respectively but net sold index futures worth Rs 72 cr. DIIs were net sellers to the tune of Rs 38 cr.

For the week, Sensex and Nifty lost 0.3% each.

HCL Tech surged after earnings surpassed street expectations on every parameter and that came along with 1:1 bonus. Net profit rose 2.3% q-o-q to Rs 1915 cr while revenues rose 6.3% to Rs 9283 cr. The expected figures were Rs 1770 cr and 8950 cr respectively. Dollar revenue rose 4% to Rs 1.49 bn as against expected figure of 1.477 bn.

BoB plunged after reporting 68% dip in net profit at Rs 334 cr. NII grew 7.5% to Rs 3286 cr. Provisions for bad loans jumped 66% y-o-y to Rs 1262 cr. Asset quality also deteriorated with gross NPAs rising 53 bps to 3.85% while net NPAs climbed 37 bps to 2.11%.

ICICI Bank reported lower-than-estimated 14% rise in net profit at Rs 2889 cr. NII grew 13.9% to Rs 4812 cr. Asset quality worsened during the quarter as gross NPAs rose by 28 bps q-o-q to 3.4% and net NPAs rose 18 bps to 1.27%.

Tech Mahindra beat street expectations on topline and bottomline front. Consolidated profit jumped 11.9% sequentially to Rs 805 cr. while revenue rose 4.8% to Rs 5752 cr. Dollar revenue grew 2.7% to USD 924 mn. EBIDTA margin expanded 26 bps to 17.66% sequentially. The company also approved issued of 1:1 bonus and 10:5 stock split.

The central statistics office (CSO) has come out with a new series of national accounts with 2011-12 as base year for computing economic growth rate. Post the revision, FY14 GDP growth stands at 6.9 percent (from 4.7 percent) and FY13 at 5.1 percent. These changes are done once in five years to keep pace with the changes in the economy. From now on, CSO will measure growth by gross value-added at basic prices, instead of by GDP at factor cost.

OUTLOOK

Data released yesterday showed that China's official manufacturing PMI slipped to 49.8 in January as against expected reading of 50.2, unexpectedly shrinking for the first time since September 2012. Data coming out today is showing that the HSBC version of the PMI has come in at 49.7 as against flash estimate of 49.8.

Today, Asian markets are trading mixed and SGX Nifty is suggesting about 50 points lower opening for our market.

Nifty, on Friday, after almost achieving the big 9000 target that we had been working with since 8446 was crossed on 15th January, saw a severe profit booking and settled 143 points lower at 8809. The benchmark also broke the immediate support of 8850, generating a sell on the hourly chart after a long time.

The trendline adjoining recent bottoms on the daily chart presents a support around 8650 and that would be the immediate downside target. Immediate resistance on the hourly chart is placed at 8870, with the stop loss of which short positions can be held on to.

India's HSBC Manufacturing PMI for January would be released today. In December, the gauge had climbed to a two-year high of 54.5, up from 53.3 in November.

Auto companies will reveal their January sales figures.