9530-9390 IS THE IMMEDIATE RANGE

9530-9390 IS THE IMMEDIATE RANGE

WORLD MARKETS                             

US indices gained 0.4%-0.8% as Trump continued his first trip abroad since taking office. Defence related stocks popped after Trump signed a multi-billion dollar arms deal during his visit to Saudi Arabia.

After Saudi, Trump arrived for his two-day visit to Israel, which will include separate meetings with Israeli Prime Minister Benjamin Netanyahu and Palestinian Authority President Mahmoud Abbas.

US crude settled 40 cents higher at $50.73/barrel on hopes that leading exporters would agree to extend the output cut - as OPEC members gear up for a meeting in Vienna this Thursday.

U.S. Treasurys slipped, with the benchmark 10-year note yield rising to 2.25% and the two-year yield climbing to 1.275%. Dollar index fell marginally to 96.99. Euro hit its highest level since Nov. 9.

European markets closed mixed with 0.3% higher FTSE, flat CAC and 0.2% lower DAX. Italy tumbled 1.2%.

Nineteen people were reported dead following a blast at the Manchester Arena in northern England where U.S. singer Ariana Grande had been performing. The U.K. police are treating the blast as a terrorism incident.

AT HOME

After rising about three fourth of a percent in the initial trade, benchmark indices gave away most of the gains through the session to end just modestly higher. Sensex settled at 30571, up 106 points while Nifty added 10 points to finish at 9438. BSE mid-cap and small-cap indices plunged 1.2% and 1.1% respectively. BSE FMCG index soared 3.1%, becoming top gainer among the sectoral indices, followed by 0.6% rise in Consumer Durable index. Healthcare and Basic Material indices were the top losers, down 1.6% and 1.4% respectively.

FIIs net sold stocks and index futures worth Rs 321 cr and 79 cr respectively but net bought stock futures worth Rs 152 cr. DIIs were net buyers to the tune of Rs 1263 cr.

Rupee appreciated 9 paise to end at 64.55/$.

The Reserve Bank of India (RBI) yesterday outlined a broad plan of action to resolve stressed assets at banks in the wake of the additional powers given to it for the purpose through the amendment of the Banking Regulation Act this month. These include expanding the scope of oversight committees and a larger role for credit rating agencies.

GAIL reported 69% drop in March quarter net profit at Rs 260 cr on the back of Rs 783 cr impairment of investment in Ratnagiri power plant. EBIDTA rose 27% to Rs 1525 cr and margin stood at 11.4%.

OUTLOOK

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

In Yesterday's report we had reiterated the view that 9530, the top made last week, is the immediate hurdle, a crossover of which is required for a fresh upmove.

Nifty, after touching a high of 9499, retreated to end at 9438, reinforcing this view.

Only after 9530 is taken out, next target of 9675 will be on the horizon. 9390, the bottom made last week, now rougly coincides with the 20-DMA and is the immediate support to eye. If this level is breached, 34-DMA, placed around 9300, would be the next important support to eye.

Tata Motors and JSPL will report their quarterly earnings today.