NIFTY ON TRACK TO ACHIEVE 10780 TARGET; 10440 IS THE IMMEDIATE SUPPORT

NIFTY ON TRACK TO ACHIEVE 10780 TARGET; 10440 IS THE IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 climbed 2.2% each while Nasdaq soared 2.9%, registering their best day since March, on the back of strong quarterly results.

Shares of Morgan Stanley, Goldman Sachs, Johnson & Johnson and UnitedHealth surged after posting better-than-expected earnings. Netflix reported after the bell and also beat the estimates. However Walmart slashed its fiscal 2019 earnings forecast, citing its Flipkart acquisition.

In data, job openings hit a record by surging above 7 million in August, according to the Labor Department.

Trump continued his criticism of the Federal Reserve, calling it his "biggest threat" as it was "raising rates too fast."

US crude rose 14 cents to $71.92 while Brent rose 64 cents to $81.42 a barrel on worries that crude supply from the Middle East could be disrupted by looming U.S. sanctions on Iran and growing tensions with top producer Saudi Arabia.

European markets gained 0.4%-2.2% with Italy on the top.

AT HOME

Sensex and Nifty gained 0.8% and 0.7% respectively, extending the winning streak to third straight day. Sensex added 297 points to settle at 35162 while Nifty finished at 10584, up 72 points. BSE mid-cap and small-cap indices climbed 1.1% and 1.7% respectively. All the BSE sectoral indices ended in green with Energy and Oil & Gas indices leading the tally, up 2% and 1.8% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 68 cr, 186 cr and 318 cr respectively. DIIs were net buyers to the tune of Rs. 295 cr.

Rupee appreciated 37 paise to end at 73.46/$.

Infosys' revenue beat estimates but margins missed expectations. Dollar revenue rose 7.7% q-o-q to $2921 mn while in rupee revenue rose 3.2% to Rs 20609 cr. Revenue, in constant currency terms, grew 4.2%. EBIT rose 7.9% to Rs 4894 cr and margin rose 3 bps to 23.75%. Company maintained FY19 constant currency revenue growth guidance at 6-8% and margin guidance at 22-24%.

Hero Motocorp's results were largely in-line with estimates. Net profit fell 3.4% y-o-y to Rs 976 cr while revenue was up 8.6% at Rs. 9091 cr. EBITDA fell 5.3% to Rs. 1378 cr and margin fell 220 bps to 15.2%.

OUTLOOK

Today morning, Asian markets are trading with gains of 1.1%-1.7% and SGX Nifty is suggesting about 100 points higher start for our market.

In yesterday's report we had said that once 10547 hurdle is taken out, 200-DMA, placed around 10780, would be the next major target to eye.

Nifty yesterday added 72 points to end at 10584, taking out the 10547 hurdle, and is set to open near 10700 today.

10780 continues to be upside target as well as resistance to eye.

Immediate support on the hourly chart is placed around 10440, with the stop-loss of which, trading longs should be held on to.

Reliance Industries will report its quarterly earnings today.

10547 CONTINUES TO BE IMMEDIATE HURDLE; 10370 NEAREST SUPPORT

10547 CONTINUES TO BE IMMEDIATE HURDLE; 10370 NEAREST SUPPORT

WORLD MARKETS

US indices fell 0.4%-0.9%, led lower by technology shares.

Bank of America reported better-than-expected earnings and revenue.

Retail sales rose just 0.1% in September as against expected gain of 0.6%.

US oil rose 44 cents to $71.78 on supply worries after a Saudi journalist Jamal Khashoggi, a critic of the Saudi kingdom and U.S. resident, disappeared after visiting the Saudi consulate in Istanbul. Brent rose 25 cents to $80.68

European markets, except a flat France, gained 0.2%-0.8%.

AT HOME

Benchmark indices ended higher by four tenth of a percent, extending the winning streak to second day. Sensex added 131 points to settle at 34865 while Nifty finished at 10512, up 40 points. BSE mid-cap and small-cap indices gained 0.6% and 1.4% respectively. BSE IT and Healthcare indices climbed 2.2% each, becoming top gainers among the sectoral indices while Consumer Durable and Auto indices were the top losers, down 1.2% and 0.5% respectively.

FIIs net bought stocks and stock futures worth Rs 68 cr and Rs 474 cr respectively but net sold index futures worth Rs 1208 cr. DIIs were net buyers to the tune of Rs 295 cr.

Rupee depreciated 27 paise to end at 73.83/$.

India's September trade deficit fell to a 5-month low of $13.98 bn from $17.39 in August. Exports fell 2.15% y-o-y while imports were up 10.45%.

Indiabulls Housing reported in-line with estimated net profit while NII beat estimates. Net profit rose 22.1% to Rs 1044 cr.  GNPA, NNPA for the quarter were at 0.77% & 0.58% respectively.

Indusind Bank reported a healthy 21% y-o-y growth in NII. However, the profits grew by a subdued 4.6% during the quarter mainly on account of a provision of Rs 275 crore made on a prudential basis on a standard asset. This provision relates to an advance given to one of the subsidiaries of IL&FS. Of the overall provisioning of Rs 590 crore, around 46% (i.e Rs 275 crore) was on account of this provision towards IL&FS. If not for this provision, the profits would have grown by 36%. Asset quality was stable as gross NPAs reduced to 1.09% in September 2018 as compared to 1.15% in the preceding quarter. Advances grew by 32% YoY aided by a 40% YoY growth in loan disbursements in vehicle finance.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.7%-1% and SGX Nifty is suggesting about 20 points higher start for our market.

In yesterday's report we had said that "10492 is the top made last week while 10540-10547 is where a gap created by the gap down opening on Friday, 5th October, is placed which makes 10492-10547 immediate resistance zone".

Nifty yesterday rose 40 points to finish at 10512 and is set to open right in the vicinity of 10540-10547 gap. Once this gap is taken out, 200-DMA, placed around 10780, would be the next major target as well as resistance to eye. Immediate support on the hourly chart is placed around 10370 below which, 10138, the low made last week, would be the major support to eye.

Infosys and Hero MotoCorp will report their quarterly earnings today.

10492-10547 IS THE IMMEDIATE RESISTANCE ZONE; 10138 IMMEDIATE SUPPORT

 10492-10547 IS THE IMMEDIATE RESISTANCE ZONE; 10138 IMMEDIATE SUPPORT

WORLD MARKETS

US indices, after two-days of meltdown, soared 1.2%-2.3% on Friday with the S & P 500 breaking six-day losing streak.

Wells Fargo and Citigroup both reported better-than-expected earnings, along with J.P. Morgan Chase, to kick off the third quarter earnings season.

Brent crude futures fell 26 cents to $80 a barrel, having dropped by 5.6% over the previous two sessions. US oil rose 37 cents to $71.34 a barrel, after falling 5.3% during the two-day sell-off.

Main European markets fell 0.1%-0.2% while Italy and Spain tumbled 0.5% and 1.2% respectively. German September inflation numbers showed a 2 percent rise for the month, boosted by energy and food prices.

For the week, US indices fell 3.7%-4.2%. European markets fell 4.4%-5.9%, marking their worst weekly declines since March. In Asia, Shanghai nosedived 7.6% while Nikkei and Hang Seng fell 5.3% and 2.9% respectively.

US crude fell 4% for the week while Brent was off roughly 5%.

AT HOME

Sensex and Nifty soared 2.2% and 2.3% respectively, registering largest single day gain since 25th May 2016. Sesnex settled at 34733, up 732 points while Nifty added 237 points to finish at 10472. BSE mid-cap and small-cap indices rose 2.4% and 2.6% respectively. Except a 0.8% and 0.5% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Auto and Metal indices leading the tally, up 4% and 3.8% respectively.

FIIs net sold stocks worth Rs 1322 cr but net bought index futures and stock futures worth Rs 529 cr and 525 cr respectively. DIIs were net buyers to the tune of Rs 1287 cr.

Rupee appreciated 56 paise to end at 73.56/%.

HUL posted better-than-expected net profit, margin and volume growth for September quarter while revenue was in-line. Net profit rose 19.5% to Rs 1525 cr while revenue was up 11.1% at Rs 9234 cr. EBITDA was up 20% at Rs 2019 cr and margin rose 170 bps to 21.9%. Volume growth stood at 10%.

Consumer price index (CPI) in September at 3.77% increased marginally from 3.69% as reported in August.

The index of industrial production grew at 4.3% in the month of August, which is the slowest pace since May 2018. In July, IIP growth stood at 6.6%.

OUTLOOK

Today morning, Nikkei and Hang Seng are down 1.4% and 1% respectively and Shanghai is off 0.3%. SGX Nifty is suggesting about 20 points lower start for our market.

In Friday's report we had said that "10482, the top made on Wednesday, continues to be immediate hurdle, upon crossover of which, 200-DMA, placed around 10780, would be the next major hurdle to eye".

Nifty surged 237 points to close at 10472.

10492 is the top made last week while 10540-10547 is where a gap created by the gap down opening on Friday, 5th October, is placed which makes 10492-10547 immediate resistance zone, a crossover of which is required for a fresh upmove. If that happens, 200-DMA, placed around 10780, would be the next major resistance. 10138, the low made last week, continues to be important support.

Indiabulls Housing and Indusind Bank will report their quarterly earnings today.

NIFTY HOLDS 10200 ON CLOSING BASIS; 10482 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY HOLDS 10200 ON CLOSING BASIS; 10482 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 plunged 2.1% each while Nasdaq fell 1.2%, extending previous day's sell-off, as investors fled riskier assets like stocks and loaded up on traditional safe havens like bonds and gold.

Treasury yields pulled back from multiyear highs following soft reading on inflation. The consumer price index rose 0.1% in September, well below the expected gain of 0.2%.

US crude tubled $2.20 or 3% to settle at $70.97 while Brent fell $2.83 or 3.4% to $80.26 a barrel. Data from US U.S. Energy Information Administration showed crude inventories climbed by 6 million barrels in the week to Oct. 5, compared with analyst expectations for an increase of 2.6 million barrels.

Trump, reacting to market correction, said "It's a correction that I think is caused by the Fed and interest rates."

Gold futures surged 2.6% to $1,224.60 per ounce.

European markets fell 1.5%-2%.

AT HOME

After plunging 3% at the open in reaction to brutal sell-off in US markets, benchmark indices recouped some of the losses through the choppy session to end lower by 2.2%. Sensex settled at 34001, down 760 points while Nifty lost 225 points to finish at 10234. Sensex and Nifty closed at the lowest level since 4^th April 11^th April 2018 respectively. BSE mid-cap and small-cap indices fell 2.3% and 1.4% respectively. Except 2.9% and 0.2% higher Oil & Gas and Energy indices respectively, all the BSE sectoral indices ended in red with IT and Realty indices leading the losses, down 3.2% each.

FIIs net sold stocks and index futures worth Rs 2869 cr and 1143 cr respectively but net bought stock futures worth Rs 227 cr. DIIs were net buyers to the tune of Rs 1888 cr.

Rupee appreciated 8 paise to end at 74.12/$.

TCS reported lower-than-expected net profit and constant-currency revenue growth for the September quarter but managed to outperform on EBIT and met estimate on margins front. Dollar revenue growth at 3.2% was in-line with estimates but constant currency revenue growth at 3.7% was a miss. Net profit rose 7.6% to Rs. 7901 cr. Margins improved 150 bps to 26.5%, a seven .

The government yesterday announced increased import duty on several electronic items and telecom equipment to rein in current account deficit (CAD) and stabilise the rupee.

OUTLOOK

Today morning, Hang Seng is up 0.3% while Nikkei and Shanghai are down half a percent each. SGX Nifty is suggesting about 50 points higher start for our market.

In yesterday's report we had said that "10200 continues to be immediate support, upon sustained trading below which, 9951 would be the next major support to eye". Nifty, after touching a low of 10138 in the initial trade, rebounded to end at 10234, holding on to 10200 support on closing basis.

10138, the bottom made yesterday, is now the immediate support, below which, 9951 would be the next crucial support to eye. 10482, the top made on Wednesday, continues to be immediate hurdle, upon crossover of which, 200-DMa, placed around 10780, would be the next major hurdle to eye.

HUL and Karnataka Bank will report their quarterly earnings today.

September CPI will be released today and is expected to inch up to 4.16% from 3.69% in August. August IIP growth is expected to ease to 4% from 6.6%.

NIFTY SET TO REVISIT 10200 SUPPORT

NIFTY SET TO REVISIT 10200 SUPPORT

WORLD MARKETS

US indices nosedived 3.2%-4.1% with the Dow and S & P 500 suffering their worst fall in eight months on worries over rising interest rates and sell-off in technology shares. Nasdaq fell the most since June 2016.

Amazon declined 6.2%, Netflix slid 8.4% while Facebook and Apple fell more than 4% each.

The producer price index rose 0.2% in September and was up 2.8% on a year-over-year basis.

Trump, expressing his view on rising interest rates said "I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy,". Commenting on the sell-off on Wall Street, Trump said: "It's a correction we've been waiting for for a long time, but I really disagree with what the Fed is doing."

US crude tumbled 2.4% to settle at $73.17 while Brent was down 2.2% at$83.10.

European markets fell 1%-2.2%. UK GDP grew 0.7% over previous quarter.

AT HOME

Sensex and Nifty soared 1.4% and 1.5% respectively, registering the largest percentage gain in nearly 6 months. Sensex added 461 points to settle at 34760 while Nifty finished at 10460, up 159 points. BSE mid-cap and small-cap indices climbed 3.7% and 3.2% respectively, registering best day since February and March 2016 respectively. Except 1.5% and 1.1% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Realty and Consumer Durable indices leading the gains, up 4.4% and 3.8% respectively.

FIIs net sold stocks and index futures worth Rs 1096 cr and 1487 cr respectively but net bought stock futures worth Rs 2280 cr. DIIs were net buyers to the tune of Rs 1893 cr.

Rupee appreciated 19 paise to end at 74.20/$.

ZEE Entertainment reported better than expected quarterly numbers on all counts. Net profit fell 38.2% to Rs 387 cr while revenue rose 25% to Rs 1976 cr. EBIDTA climbed 38% to Rs 676 cr and margin was up 320 bps at 34.2%. Advertising revenue rose 22.7% to Rs 1211 cr and subscription revenue was up 21.3% at Rs 608 cr. 320 34.2

OUTLOOK

Today morning, Asian markets are trading with cuts of 2.55-3.5% and SGX Nifty is suggesting more than 200 points lower start for our market.

In yesterday's report we had reiterated the view that 10200, the low made on Monday, continues to be immediate support while 10400, in the vicinity of which tops made on Monday and Tuesday were placed, was the immediate hurdle.

Nifty crossed 10400 hurdle and touched a high of 10482 before closing at 10460 but is set to open around 10250 today.

10200 continues to be immediate support, upon sustained trading below which, 9951 would be the next major support to eye.

10482, the top made yesteray, would now be the immediate hurdle.

TCS will report its quarterly earnings today.

10200 CONTINUES TO BE IMMEDIATE SUPPORT; 10400 IMMEDIATE HURDLE

10200 CONTINUES TO BE IMMEDIATE SUPPORT; 10400 IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 0.2% and 0.1% respectively while Nasdaq ended flat, with the S & P 500 extending the losing streak to fourth day.

US-10 year note yield touched a high of 3.252%, its highest since May 2011, before slipping to 3.21%. U.S. 30-year yield hit a four-year high at 3.439 percent.

Trump said that he did not like the Federal Reserve's decision to continue hiking interest rates.

US oil rose 67 cents to $74.96 and Brent added $1.09 to settle at $85 a barrel.

IMF cut its global economic growth outlook for this year and the next, citing trade uncertainties including the new NAFTA agreement, Brexit and the battle of tariffs between the U.S. and China.

European markets gained 0.1%-1.1% with Italy on the top. The U.K. pound surged to $1.31 handle after news reports suggested that EU and U.K. divorce terms could be resolved by October 15th.

AT HOME

Benchmark indices ended lower by half a percent after a rangebound but choppy session. Sensex settled at 34299, down 175 points while Nifty lost 47 points to finish at 10301. BSE mid-cap and small-cap indices fell 0.2% and 0.4% respectively. BSE Consumer Durable and Auto indices tumbled 3.9% and 2.6% respectively, becoming top losers among the sectoral indices while Metal and Healthcare gained 1% each, becoming top gainers.

FIIs net sold stocks worth Rs 1243 cr but net bought index futures and stock futures worth Rs 80 cr and 377 cr respectively. DIIs were net buyers to the tune of Rs 1526 cr.

Rupee depreciated 33 paise to end at fresh record low of 74.39/$.

Tata Motors nosedived 13% after the company-owned Jaguar Land Rover (JLR) reported a 12.3% decline in global sales in September, hit by lower demand in China.

OUTLOOK

Today morning, Hang Seng is up 0.7% while Nikkei and Shanghai are up about 0.2% each. SGX Nifty is suggesting about 40 points higher start for our market.

In yesterday's report we had said that 10198, the low made Monday, is the immediate support while immediate hurdle on the hourly chart is placed around 10740.

Nifty, after touching a high of 10398, slipped in last half an our to end at 10301 and is set to open higher today.

10200 continues to be immediate support, upon sustained trading below which, 9951, the bottom made in March, would be the next major support to eye. 10400, in the vicinity of which tops made yesterday and day before are placed, is the immediate hurdle above which 10650-10780 would be the bigger resistance zone to eye.

Zee Entertainment will report its quarterly earnings today.

10200 IS IMMEDIATE SUPPORT; 10740 IMMEDIATE HURDLE

10200 IS IMMEDIATE SUPPORT; 10740 IMMEDIATE HURDLE

WORLD MARKETS

Dow gained 0.2%, while S & P 500 ended little changed and Nasdaq fell 0.7% yesterday with the Dow breaking two-day losing streak while S & P 500 and Nasdaq fell for the third consecutive day.

US crude, after touching a low of $73.07, recovered to close 5 cents lower at $74.29 while Brent crude, after touching a low of $82.66, rebounded to end at $83.73, down 43 cents compared to previous close.

European markets fell 1.1%-2.4% with Italy topping the losses as Italian government bond yields hit highest level in 4-1/2 years amid renewed fears over Italy's budget plans. The EU reiterated concerns over Italy's budget plans over the weekend. In response, Italy said it would "not retreat" from its current spending plans.

AT HOME

Benchmark indices managed to end higher by three tenth of a percent after a volatile session to break three-day losing streak. Sensex settled at 34474, up 97 points while Nifty added 32 points to finish at 10348. BSE mid-cap and small-cap indices however ended with cuts of 2% each. BSE Energy and Oil & Gas indices soared 4.4% and 3.3% respectively, becoming top gainers among the sectoral indices while Metal and Realty indices plunged 3.2% and 3.1% respectively, becoming top losers.

FIIs net sold stocks worth Rs 1805 cr but net bought index futures and stock futures worth Rs 918 cr and 1334 cr respectively. DIIs were net buyers to the tune of Rs 1974 cr.

Rupee depreciated 29 paise to end at fresh record low of 74.06/$.

OUTLOOK

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

In yesterday's report we had said that "10261, the bottom made on Friday, coincides with a trendline adjoining bottoms made in September 2017 and March 2018" and that upon sustained trading below 10261, 9951, the bottom made in March, would be the next meaningful support to eye.   

Nifty, after touching a low of 10198, rebounded in last hour to end at 10348, holding the trendline support mentioned above on closing basis.

10198, the bottom made yesterday, is now the immediate support below which 9951 would be the next major support to eye.

Immediate hurdle on the hourly chart is placed at 10740.