CONSOLIDATION CONTINUES

CONSOLIDATION CONTINUES

WORLD MARKETS                             

Dow and S & P 500 fell 0.2% and 0.1% respectively while Nasdaq gained 0.3% yesterday. Comments from North Korea indicating the country would continue with its nuclear tests weighed on the sentiment.

In economic news, the NFIB survey showed small-business confidence slipped in April. Wholesale inventories for March rose 0.2% as against expectation of a 0.1% decline. The JOLTs (job openings and labor turnover survey) showed job openings totaled 5.7 million in March.

Dollar strengthened for the third consecutive day, rising about 0.4% to 99.54.

WTI crude fell 1.2% to close at the lowest level since Nov 29, the day before the Organization of the Petroleum Exporting Countries (OPEC) agreed to cut production during the first half of 2017.

European markets gained 0.3%-0.6%. German imports and exports hit a record high in March.

Back in the US FBI Director James Comey was fired by U.S. President Donald Trump on the recommendation of Attorney General and Deputy Attorney General.

AT HOME

Benchmark indices ended little changed after trading in a narrow range through the day, extending the consolidation to eighth straight day. Sensex settled at 29933, up 7 points while Nifty added 3 points to finish at 9317. BSE mid-cap and small-cap indices outperformed yet again, rising 0.2% and 0.5% respectively. BSE Capital Goods and Industrial indices climbed 1.9% and 1.3% respectively, becoming top gainers among the sectoral indices while Telecom and Consumer Durable indices were the top loser, down 0.8% and 0.6% respectively.

FIIs net bought stocks worth Rs 333 cr but net sold index futures and stock futures worth Rs 1083 cr and 594 cr respectively. DIIs were net buyers to the tune of Rs 17 cr.

Rupee depreciated 32 paise to end at 64.63/$.

IMD said India is likely to receive above average monsoon rainfall as concern over the El Nino weather condition has eased in the past few weeks.

Bharti Airtel reported worse than expected 69% fall in quarterly profit at Rs 471 cr. Net sales dropped 12% to Rs 21935 cr. EBIDTA margin fell to 36.4% from 36.72% but were better-than-expected. There was a sharp decline in voice and data RPM while volumes jump.

OUTLOOK

Today morning SGX Nifty is suggesting about 15-20 points higher start for our market.

Yesterday was the eight day of consolidation as Nifty traded within the 100 point 9370-9270 range. A breach of this range, on either side, is required for a fresh directional view.

Above 9370, 9470 would be the next upside target. Below 9270, 34-DMA, placed around 9200, would be the next downside target.

Existing longs can be held on to with the stop-loss of 9270.

Hero MotoCorp, Zee Entertainment and Siemens will report their quarterly earnings today.

SEVENTH CONSECUTIVE DAY OF CONSOLIDATION WITHIN 9370-9270 RANGE

SEVENTH CONSECUTIVE DAY OF CONSOLIDATION WITHIN 9370-9270 RANGE

WORLD MARKETS                             

US indices ended flat to marginally higher.

Cleveland Fed President Loretta Mester, in a speech, said "We have met the maximum employment part of our mandate and inflation is nearing our 2% goal." St. Louis Federal Reserve President James Bullard however struck a more dovish note by saying that continued strong demand for safe assets along with sluggish growth in the U.S. workforce will hold down U.S. interest rates for the foreseeable future.

Dollar index gained 0.6% to 99.16.

U.S. crude rose 21 cents to settle at $46.43 a barrel while Brent crude added 24 cents to settle at $49.34.

Earlier data showed China's exports grew 8% y-o-y in April, slowing from a 16.4% rise in March. Imports rose 11.9%, down from 19.8% growth in March.

European market, except a marginally higher FTSE, fell 0.2%-0.9%. Basic resources fell after weak iron ore imports data from China. The euro briefly climbed above $1.10 against the dollar for the first time in six months after Le Pen was defeated, before trading about half a percent lower at $1.093.

AT HOME

Benchmark indices ended with gains in vicinity of a fourth of a percent while broader market outperformed. Sensex added 67 points to settle at 29926 while Nifty finished at 9314, up 29 points. BSE mid-cap and small-cap indices climbed 0.5% and 0.7% respectively. BSE Realty index soared 4.5%, becoming top gainer among the sectoral indices, followed by 2% rise in Telecom index. FMCG and Capital Goods indices were the top losers, down 0.6% and 0.3% respectively.

FIIs net sold stocks and index futures worth Rs 542 cr and 238 cr respectively but net bought stock future worth Rs 682 cr. DIIs were net buyers to the tune of Rs 663 cr.

Rupee appreciated 6 paise to end at 64.4775/$.

SBI announced a 25 bps cut for home loans, bringing the rate down to 8.35% per annum for sub Rs 30 lakh loan. 

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 10 points higher start for our market.

Yesterday was the seventh consecutive day of consolidation. During these seven days, Nifty has traded in a 100 point range of 9370-9270. Obviously, a crossover of this range, on either side, is required for taking a fresh directional view.

Below 9270, 34-DMA, placed around 9200, would be the next support to eye. Above 9370, 9470 would be the next upside target.

Meanwhile existing longs can be held on to with the stop-loss of 9270.

Bharti Airtel will report its quarterly earnings today.

NIFTY EXTENDS CONSOLIDATION BETWEEN 9367-9250 RANGE

NIFTY EXTENDS CONSOLIDATION BETWEEN 9367-9250 RANGE

WORLD MARKETS                             

US indices gained 0.3%-0.4% on Friday with S & P 500 and Nasdaq closing at record levels after solid jobs report. Apple too closed at record high.

The U.S. economy added 211,000 jobs in April and the unemployment rate fell to 4.4% as against expectation of 185,000 and 4.5% respectively. Average hourly wages rose 0.3%.

The benchmark 10-year note yield fell to 2.353% after a brief rise following the data release. The two-year note yield, meanwhile, rose to 1.32%.

Oil rebounded with WTI and Brent closing 1.5% higher at $46.22 and $49.10 per barrel respectively.

European markets added 0.6%-1.5%. Basic resources stocks were the best performers after copper prices recovered from a five-month low.

For the week, US indices gained 0.3%-0.9%. European markets climbed 1.3%-3.1% with CAC on the top. Asia however was more down that up with 1.3% higher Nikkei but 1.6% down Shanghai and 0.6% lower Hang Seng.

AT HOME

Benchmark indices nosedived just under a percent, registering the largest single day fall since 22nd March. Sensex tumbled 267 points to settle at 29859 while Nifty finished at 9285, down 75 points. BSE mid-cap and small-cap indices lost 1.1% and 0.8% respectively. Except a flat Consumer Durable index, all the BSE sectoral indices ended in red with Metal and Energy indices leading the losers, down 2.5% and 1.7% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 364 cr, 1088 cr and 470 cr respectively. DIIs were net buyers to the tune of Rs 298 cr.

Rupee depreciated 17 paise to end at 64.54/$.

For the week, Sensex and Nifty lost 0.2% each.

Government notified the ordinance to amend the Banking Regulation Act, empowering the Reserve Bank of India (RBI) and banks to initiate bankruptcy proceedings against chronic defaulters.

OUTLOOK

In the second and last round of the French presidential election, Macron defeated far-right candidate Marine Le Pen by securing 65.1% vote.

Nikkei is up a percent and half, other Asian markets are trading with gains of upto half a percent but Shanghai is down 0.4%. SGX Nifty is suggesting about 15 points higher start for our market.

Nifty has been in a consolidation mode over past six sessions and as we have been saying, 9367, the top made towards end of April, is the immediate hurdle, a decisive crossover of which is required for a fresh upmove. Also 9250-9225, where a gap on the daily chart as well as 20 DMA is placed, continue to be immediate support to eye.

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.