NIFTY RESISTED AT 9367 HURDLE; 9250-9225 CONTINUES TO BE SUPPORT

NIFTY RESISTED AT 9367 HURDLE; 9250-9225 CONTINUES TO BE SUPPORT

WORLD MARKETS                             

Dow ended marginally in the red while S & P 500 and Nasdaq were marginally higher amidst sharp fall in oil and ahead of Friday's jobs data.

WTI crude plunged 4.8% to $45.52 a barrel, hitting a five-month low and Brent fell 5% to $48.26 after data showed crude oil stocks fell 930,000 barrels, compared with the 2.3 million barrel drop that was expected, leaving inventories just 7 million barrels short of the record high.

The House passed the bill aimed at repealing and replacing Obamacare by a vote of 217 to 213 after months of struggling to win enough support to move it forward.

Jobless claims fell by 19,000 to 238,000, while productivity for the first quarter fell more than expected. The U.S. trade deficit narrowed to $43.7 billion. Factory orders rose less than expected in March.

European markets gained 0.2%-2% after being buoyed by corporate earnings and a televised political debate which saw centrist presidential candidate Emmanuel Macron maintaining his lead on eurosceptic opponent Marine Le Pen ahead of this Sunday's French election. France's CAC 40 hit its highest level since January 2008, while Germany's DAX closed at a fresh record high.

AT HOME

After a positive start, benchmark indices gave away most of the gains in morning session only to recoup all of them in noon to end with gains in excess of half a percent with Nifty closing at record high. Sensex added 231 points to settle at 30126 while Nifty finished at 9360, up 48 points. BSE mid-cap and small-cap indices gained half a percent each. BSE Bankex soared 2.3%, becoming top gainers among the sectoral indices, followed by 1.4% rise in Consumer Durable and Finance indices. Realty and Metal indices lost 0.8% each, becoming top losers.

FIIs net sold stocks and index futures worth Rs 601 cr and 439 cr respectively but net bought stock futures worth Rs 477 cr. DIIs were net buyers to the tune of Rs 926 cr.

Rupee ended unchanged at 64.3650/$.

HDFC reported 21.6% y-o-y fall but 20.2% q-o-q growth in net profit at RS 2044 cr. Last year same quarter's profit included Rs 1513 on account of sale of stake in HDFC Standard Life. Income from operations rose 10% y-o-y to Rs 8453 cr. Net interest income rose 26.5% to Rs 3123 cr. Gross NPA as a percentage of gross advances declined to 0.79% from 0.81% on sequential basis.

OUTLOOK

Today, Nikkei is shut while Shanghai and Hang Seng are down about half a percent. SGX Nifty is suggesting about 25 points lower start for our market.

While Nifty has been in a consolidation mode over last couple of days, we have been advising holding on to long positions with the stop-loss of 9250-9225, the regions where a gap, created last week, lands a support. We have also been saying that 9367, the top made last week, is the immediate hurdle, above which 9470 would be the next target to eye.

The benchmark touched a high of 9366 before closing at 9360 but is set to open lower today.

9367 continues to be immediate hurdle above which 9470 would be the next target as mentioned above.

9250-9225 continues to be immediate support area, with the stop-loss of which existing longs should be held on to.

Eicher Motors and Apollo Tyres will report their quarterly earnings today.

Key data to watch out today would be the US April non-farm payroll figure where addition of 185000 jobs is expected versus 98000 in March.

9250-9225 CONTINUES TO BE SUPPORT AREA; 9367 IMMEDIATE HURDLE

9250-9225 CONTINUES TO BE SUPPORT AREA; 9367 IMMEDIATE HURDLE

WORLD MARKETS                             

While Dow ended marginally in the green, S & P 500 and Nasdaq fell 0.1% and 0.4% yesterday after digesting hawkish

The Fed concluded its two-day policy meeting Wednesday afternoon, giving a positive assessment of the U.S. economy while keeping rates unchanged, as was widely expected. In a statement, the Fed's policymaking committee did express some misgivings about the U.S. economy growing just 0.7 percent in the first quarter, but added they see the weakness as "transitory."

The U.S. private sector created 177,000 jobs last month, according to a report from ADP and Moody's Analytics. The final Markit services PMI reading for April hit 53.1 while the ISM non-manufacturing reading reached 57.5.

Dollar index rose about half a percent to 99.38. Treasury yields rose slightly, with the short-term two-year note yield near 1.298% and the benchmark 10-year yield around 2.311%.

European markets ended mixed with modest changes. Basic resources stocks led the losers amid a slide in metal prices with copper, nickel and zinc prices dropping by more than 3%.

AT HOME

Benchmark indices, after a positive start, saw a sustained downward move through the session to end marginally lower. Sensex lost 26 points to settle at 29895 while Nifty finished at 9312, down 2 points. BSE mid-cap index fell 0.3% but the small-cap index gained 0.1%. BSE Realty and IT indices climbed 1.5% and 1.4% respectively to become top gainers among sectoral indices while Healthcare index was the top loser, down 1%, followed by half a percent lower Consumer Durable and Capital Goods indices.

FIIs net sold stocks and stock futures worth Rs 518 cr and 436 cr respectively but net bought index futures worth Rs 63 cr. DIIs were net buyers to the tune of Rs 112 cr.

Ruee appreciated 9 paise to end at 64.3625/$.

Union Cabinet yesterday approved promulgation of an ordinance to amend the Banking Regulation Act, preparing ground to take tough action against chronic bank loan defaulters. The details will be revealed after it gets Presidential assent.

ICICI Bank's fourth quarter standalone profit jumped 188% y-o-y to Rs 2,0245 crore on the back of low base but bad loans increased sharply due to one account in cement sector. NII beat expectations, growing 10.3% to Rs 5962 cr y-o-y, with loan growth of 6.6% at Rs 4.64 lakhcr and net interest margin at 3.57% (against 3.12% qoq). Gross non-performing assets (NPA) as a percentage of gross advances increased 69 basis points sequentially to 7.89% and net NPAs rose 93 bps to 4.89%. Fresh slippages, stripped off Rs 5910 cr pertaining to one cement account, stood at around Rs 5900 cr, which was better-than-expected and lowest in 5 quarters.

Cabinet also approved National Steel Policy 2017 which aims to increase manufacturing of quality steel in the country, boost domestic steel consumption and turn India into a globally competitive steel industry.

OUTLOOK

Today morning Asian markets are trading and SGX Nifty is suggesting a marginally lower start for our market.

Yesterday was the fourth day of consolidation for Nifty after achieving the 9350 target last week.

9250-9225 continues to be the support area, with the stop-loss of which positional longs can be held on to. 9367, the top made last week, is the immediate hurdle, above which 9470 would be the next target to eye.

HDFC and Wockhardt will report their quarterly earnings today.

NIFTY EXTENDS CONSOLIDATION; ICICI BANK EARNINGS, FED IN FOCUS

NIFTY EXTENDS CONSOLIDATION; ICICI BANK EARNINGS, FED IN FOCUS

WORLD MARKETS                             

US indices gained 0.1%-0.2% with Nasdaq along with Apple hitting new high ahead of Apple earnings.

Fed kicked off its two-day monetary policy meeting and is expected to stay put on interest rate front. However, markets will be looking for more clues about June hike and the Fed's plan to unwind its massive $4.5 trillion balance sheet.

WTI crude slipped 2.4% to $47.66 a barrel as higher output in the United States, Canada and Libya outweighed lower production by Russia and major OPEC exporters.

US auto sales hit 16.88 million for April, below an expected annual rate of 17.2 million.

European markets gained 0.6%-1%.  BP gained after its profits almost tripled in the first quarter when compared to the year previous.

Apple reported after the bell. While earnings beat expectations, revenue fell short of estimates as the company sold fewer iPhones than expected. It guided to third quarter revenues of around $44.5 billion, a bit below market consensus.

AT HOME

After gaining about half a percent in the initial trade, benchmark indices gave away most of the gains through the session to end just marginally higher. Sensex added 3 points to settle at 29921 while Nifty finished at 9314, up 10 points. BSE mid-cap and small-cap indices added 0.4% and 0.3% respectively. BSE Realty and Consumer Durable indices climbed 2% and 1.2% respectively, becoming top gainers among the sectoral indices while Telecom and Healthcare indices were the top losers, down 1.2% and 0.8% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 612 cr, 714 cr and 176 cr respectively. DIIs were net buyers to the tune of Rs 541 cr.

Rupee appreciated 8 paise to end at 64.4475/$.

India's Nikkei manufacturing PMI remained unchanged month-on-month at 52.5 in April.

Ashok Leyland reported 30% y-o-y dip in April sales at 7083 units. M & M April sales fell 6% to 39357 units but tractor sales rose 22% to 26001 units. TVS Motors reported 8.4% growth in April sales at 2.46 lac units.

Fitch kept India's rating unchanged at BBB- with stable outlook.

OUTLOOK

Today morning, Asian markets, except a mildly lower Shanghai, are trading with modest gains and SGX Nifty is suggesting about 15 points higher start for our market.

Nifty has been in a consolidation mode over past two days after achieving the 9350 target. 9250-9225 continues to be immediate support area, with the stop-loss of which, trading longs can be held on to. 9367, the top made last week, is the immediate hurdle, above which 9470 would be the next upside target to eye.

ICICI Bank will report its quarterly earnings today. Profit y-o-y is expected to rise 200% to Rs 2120 cr and NII is likely to increase 0.2% to Rs 5416 cr. Slippages are expected to remain high in 6500-7000 cr range. Management commentary on stressed loans will be closely watched.

STAY LONG WITH THE STOP-LOSS OF 9225

STAY LONG WITH THE STOP-LOSS OF 9225

WORLD MARKETS                             

While Dow lost 0.1%, S & P 500 and Nasdaq gained 0.2% and 0.7% respectively yesterday with the later closing at record high.

Banking stocks whipsawed after President Trump, in a media interaction, said he is looking at breaking up the big banks.

The ISM manufacturing index slipped to 54.8 in April from 57.2 and came in below consensus. Construction spending in March fell from a record high. The Commerce Department said consumer spending remained flat in March, while personal income rose less than expected.

WTI crude fell 1% to $48.84 and Brent lost 53 cents to $51.52 a barrel.

Meanwhile, lawmakers reached a deal Sunday to keep the government funded for the next five months.

European markets were shut yesterday for Labor Day.

AT HOME

Benchmark indices ended lower by four tenth of a percent on the last trading day of the month and week and ahead of a long weekend. Sensex lost 111 points to settle at 29918 while Nifty finished at 9304, down 38 points. BSE mid-cap and small-cap indices however, gained 0.2% and 0.6% respectively. BSE Realty and FMCG indices tumbled 1.8% and 1.2% respectively, becoming top losers among the sectoral indices while Metal index climbed 1.5%, becoming top gainer, followed by 0.6% rise in Auto index.

Rupee depreciated 14 paise to end at 64.53/$.

For the week, Sensex and Nifty gained 1.9% and 2% respectively, breaking 2-week losing streak.

India's core sector, comprising of eight core industries, grew by 5% in March, up from 1% in February.

Maruti Suzuki reported 23.4% jump in April sales at 1.44 lac units. Tata Motors reported a 21% fall at 30972 units. Eicher Motor reported 25% growth in Royal Enfield sales at 60142 units.

For the month of April, Sensex and Nifty gained 1% and 1.4% respectively, extending the winning streak to fourth consecutive month.

OUTLOOK

Today morning, except a 0.3% lower Shanghai, other Asian markets are trading with gains of 0.3%-0.8% and SGX Nifty is suggesting about 25 points higher start for our market.

After Nifty crossed the immediate hurdle of 9200, we had given targets of 9273, 9350 and 9470 and have been asking holding on to long positions with a trailing stop-loss.

Nifty last week, touched a high of 9367 before closing at 9304, achieving the 9350 target.

9367 is the immediate hurdle above which 9470 would be the next major target to eye.

9250-9225, the gap created by the gap up opening last Tuesday, is the immediate support area, with the stop-loss of which, trading longs should be held on to.

Marico will report its quarterly earnings today.

NIFTY CONSOLIDATED AFTER ACHIEVING 9350 TARGET; TRAIL STOP-LOSS TO 9250

NIFTY CONSOLIDATED AFTER ACHIEVING 9350 TARGET; TRAIL STOP-LOSS TO 9250

WORLD MARKETS                             

Dow and S & P 500 ended marginally higher while Nasdaq gained 0.4% to close at record high.

Energy stocks were under pressure as US crude fell 1.3% to $48.97, it's lowest since March 29, on oversupply concerns.

Durable goods orders rose a less-than-expected 0.7% in March. Weekly jobless claims increased more than expected to 257,000. Pending home sales fell 0.8% in March.

The ECB left its monetary policy unchanged even as ECB President Draghi acknowledged the economy recovery taking place in the Euro zone. However he also said that net asset purchases at a new monthly pace of 60 billion euros (nearly $65.6 billion) would "run until the end of December 2017, or beyond, if necessary."

Following the decision, euro/dollar declined for a second consecutive session, trading at $1.0862.

European markets fell 0.2%-1.2%. Basic resources were the worst performers as commodity prices edged lower and Chinese iron ore futures slipped for a third session out of four.

AT HOME

Benchmark indices ended with modest cut after a choppy trade on the expiry day of the Aril derivative series to break the three-day winning streak. Sensex lost 104 points to settle at 30030 while Nifty finished at 9342, down 10 points. BSE mid-cap index gained 0.1% while small-cap index was down 0.02%. BSE Metal index fell 1%, becoming top loser among sectoral indices, followed by 0.7% cut in FMCG and Healthcare indices. Realty and IT indices were the top gainers, up 0.7% and 0.5% respectively.

FIIs net sold stocks and stock futures worth Rs 182 cr and 794 cr respectively but net bought index futures worth Rs 587 cr. DIIs were net buyers to the tune of Rs 233 cr.

Rupee depreciated 4 paise to end at 64.15/$.

For the April derivative series, Sensex and Nifty gained 1.3% and 1.8% respectively.

Maruti reported better-than-expected topline while bottomline and operational performance matched estimates. Net profit grew 15.8% y-o-y to Rs 1709 cr. Revenue rose 20.4% to Rs 20751 cr. Operating profit rose 9.9% to Rs 2561 cr and margin contracted by 140 bps to 14.2%.

Kotak Mahindra Bank reported better-than-expected earnings but asset quality weakened. Kotak Mahindra Bank reported 40.3% y-o-y increase in net profit at Rs 976.5 cr. NII rose 16.4% to Rs 2161 cr. Net interest margin expanded to 4.6% from 4.49% q-o-q. Gross NPA ratio rose 17 bps q-o-q to 2.59% and net NPA ratio rose 19 bps to 1.26%.

OUTLOOK

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

Nifty, after achieving the 9350 target on Wednesday, saw a volatile consolidation on the expiry day of the April derivative series yesterday.

9470 is the next upside target to eye. Immediate support on the hourly chart has moved up to 9250, with the stop-loss of which existing longs can be held on to.

Ambuja Cement will report its quarterly earnings today.

NIFTY ACHIEVES 9350 TARGET; TRAIL STOP-LOSS TO 9210

NIFTY ACHIEVES 9350 TARGET; TRAIL STOP-LOSS TO 9210

WORLD MARKETS                             

After trading in green for better part of the day, US indices slipped in last hour or so to end flat to marginally lower after digesting Trump's highly-anticipated tax reform plans.

The plan proposed a cut in the corporate tax rate from 35% to 15% and also said that there will be a "one-time tax" on the trillions of dollars held by corporations overseas. However, the plan left market with questions on whether the changes would increase the budget deficit.

PepsiCo, United Technologies, Procter & Gamble and Twitter all posted a better-than-expected profit.

WTI) fell 0.52 percent to trade at $49.36 a barrel while Brent crude futures fell 0.37 cents to trade at $51.63

European markets ended with modest gains.

AT HOME

Benchmark indices, after heightened volatility in the late noon trade, managed to end higher by half a percent, with both Nifty and Sensex closing at record high and Sensex closing above 30000 mark for the first time ever. Sensex soared 190 points to settle at 30133 while Nifty finished at 9352, up 45 points. BSE mid-cap and small-cap indices however ended with cuts of 0.1% and 0.6% respectively. BSE FMCG and Auto indices gained 2% and 1% respectively, becoming top gainers among the sectoral indices while Realty index plunged 3%, becoming top loser, followed by 1.1% cut in Energy and IT indices.

FIIs net sold stocks worth Rs 493 cr but net bought index futures and stock futures worth Rs 241 cr and 1382 cr respectively. DIIs were net buyers to the tune of Rs 1011 cr.

Rupee appreciated 18 paise to end at 64.38/$.

Axis Bank fourth quarter net profit fell 43% y-o-y to Rs 1225 cr but surpassed street expectations due to higher-than-expected NII, other income and strong recoveries. NII rose 4% to Rs 4729 cr. Advances increased 10% to Rs 3.73 lakh cr. Net interest margin improved to 3.83% from 3.43% q-o-q. Gross NPA ratio improved 18 bpas to 5.04% and net NPA ratio fell 7 bps to 2.11%. Additions to gross NPA (gross slippages) were Rs 4811 cr against Rs 4560 in previous quarter whiel net slippages stood at Rs 2008 cr.

SEBI yesterday approved introduction of options trading in the commodities market and also approved proposals to grant unified licence to the commodity and equity brokers and regulations for monitoring funds up to Rs 500 crore raised via initial public offerings.

OUTLOOK

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

Readers would recall that we had given targets of 9273 followed by 9350 after Nifty took out immediate hurdle of 9200. The benchmark yesterday soared to 9367 before closing at 9352, achieving the 9350 target and vindicating our view.

Next level to eye on the upside is around 9470. Immediate support on the hourly chart has moved up to 9210, with the stop-loss of which trading longs can be held on to.

Maruti, Kotak Bank TVS Motor and Biocon will report their quarterly earnings today.

In the US Trump will be outlining his tax reform vision ahead of a potential government shutdown. Government funding will end Friday unless Congress can agree on at least a temporary funding resolution.

NIFTY ACHIEVES 9273 TARGET, 9350 NEXT

NIFTY ACHIEVES 9273 TARGET, 9350 NEXT

WORLD MARKETS                             

US indices climbed 0.6%-1.1% on the back of strong earnings announcements and on expectations for U.S. President Donald Trump's impending tax reforms. Nasdaq crossed the 6000 mark for the first time ever.

McDonald's and Caterpillar climbed after reporting solid earnings and contributed the most in Dow.

The national home price index jumped 5.8% in February more than the expected 5.7% rise. New home sales rose 5.8% to 621,000 in March, above expectations. Consumer confidence held at 120.3 for April.

WTI crude gained 33 cents or 0.7% to $49.56, snapping a six-day losing streak. Brent gained a percent to $52.15.

Dollar index fell about 0.3% to 98.72, marking a five-month low.

European markets gained upto 0.6%.  French business showed no signs of concern over the ongoing presidential race with sentiment stable at 104 in April.

AT HOME

Repeating Monday's big upmove, benchmark indices climbed a percent today with Nifty hitting a fresh record high. Sensex soared 287 points to settle at 29943 while Nifty finished at 9307, up 89 points. BSE mid-cap and small-cap indices added 1.1% and 0.6% respectively. All the BSE sectoral indices closed higher with Telecom and Realty indices leading the tally, up 2.6% and 1.3% respectively.

FIIs net bought stocks and stock futures worth Rs 179 cr and 1806 cr respectively but net sold index futures worth Rs 805 cr. DIIs were net buyers to the tune of Rs 998 cr.

Rupee appreciated 18 paise to end at 64.26/$.

Wipro reported better-than-expected earnings but Q1 guidance disappointed. IT services revenue rose 2.7% q-o-q to USD 1955 mn. Rupee revenue rose 1.6% to Rs 13402 cr and consolidated profit grew by 7.2% to Rs 2267 cr. The company guided for sequential revenue growth of negative 2% to 0% for Q1FY18. The company declared 1:1 bonus.

OUTLOOK

Today morning Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting about 15 points higher start for our market.

After Nifty took out the immediate hurdle of 9200, we had said that 9273, the top made in early April, is the immediate target above which 9350 would be the next target to eye.

Nifty yesterday soared to 9309 before closing at 9307, achieving the 9273 target and moving towards 9350.

9350 continues to be the immediate target above which 9470 would be the next level to gun for.

Immediate support on the hourly chart has moved up to 9170, with the stop-loss of which trading longs should be held on to.

Axis Bank will report its quarterly earnings today.