KEEP STOP-LOSS OF 10495
US indices, weighed down by fall in technology stocks and rise in interest rate, fell 0.3%-0.8%.
Technology stocks fell after Taiwan Semiconductor Manufacturing (TSMC), the largest contract chipmaker in the world, said it expects second-quarter revenue to range between $7.8 billion and $7.9 billion, well below a market estimate of $8.8 billion
US 10-year Treasury note yield broke above 2.9% and two-year yield traded near highest levels in nearly a decade.
Weekly jobless claims totaled 232,000, slightly more than expected. The Philadelphia Fed index hit 23.2 for April, higher than estimate of 20.
European markets, except 0.2% lower DAX, gained upto 0.2%.
US oil fell 0.3%.
Sensex and Nifty finished with gains of 0.3% and 0.4% respectively after a rangebound session. Sensex added 96 points to settle at 34427 while Nifty finished at 10565, up 39 points. BSE mid-cap and small-cap indices climbed 0.6% each. BSE Metal index soared 4.5%, becoming top gainer among sectoral indices, followed by 2.8% higher Basic Material index. Oil & Gas and Consumer Durable indices were the top losers, down 1.3% and 0.9% respectively.
FIIs net sold stocks worth Rs 625 cr but net bought index futures and stock futures worth Rs 792 cr and 264 cr respectively. DIIs were net buyers to the tune of Rs 449 cr.
Rupee depreciated 13 paise to end at 65.79/$.
Indusind Bank reported 27% y-o-y rise in March quarter net profit at Rs 953 cr. NII rose 20.4% to Rs 2008 cr. Net interest margin dipped 3 bps q-o-q to 3.97%. Gross NPA ratio rose 1 bps to 1.17% and Net NPA ratio worsened 5 bps to 0.51%. Slippages more than doubled to Rs 860 cr and provisions for bad loans rose 42% q-o-q to Rs 335 cr.
TCS beat market expectations on all front barring operating profit margin that was in line. Revenue in dollar terms increased 3.9%, the highest growth in last 14 quarters, to USD 4,972 million. Constant currency growth stood at 2%. In rupee terms, revenue from operations for the quarter grew by 3.8% to Rs 32,075 cr. Consolidated net profit rose 5.7% q-o-q to Rs 6904 cr. EBIT increased 4.7% to Rs 8,147 cr and margin improved 20 bps to 25.4%. It also announced 1:1 bonus.
Today morning, Asian markets are trading with cuts of 0.2%-0.4% and SGX Nifty is suggesting about 40 points lower start for our market.
Readers would recall that we have maintained positive stance on Nifty ever since immediate hurdle of 10130 was taken out on 26th March and have been advising holding on to long positions with a trailing stop-loss. In yesterday's report, we had mentioned that 10630, in the vicinity of couple of tops were made in February, is the immediate hurdle to eye above which 10700, the 61.8% retracement level of the entire 11171-9951 fall, would be the next target to eye.
Nifty yesterday traded within previous day's range and finally settled at 10565 and is set to open lower today.
10495, as mentioned in yesterday's report, continues to be immediate support, a decisive breach of which would generate a sell on the hourly chart and would pave the way for further correction.
Traders are advised to hold existing longs with the stop-loss of 10495.