9700-9725 IS THE NEXT TARGET AREA; 9450 IMMEDIATE SUPPORT

9700-9725 IS THE NEXT TARGET AREA; 9450 IMMEDIATE SUPPORT

WORLD MARKETS                             

While Dow ended marginally in the red, S & P 500 and Nasdaq gained marginally on Friday to eke out record close and extended their winning streak to seven sessions.

The U.S. economy grew at an annual rate of 1.2% in the first quarter, an improvement from the first reading on economic growth. Durable goods orders for April fell less than expected.

US crude gained 1.8% to $49.80/barrel and Brent was up 1.3% at $52.14, rebounding after previous day's pounding.

U.S. Treasury yields traded mixed, with the benchmark 10-year yield slipping to 2.24% and the two-year yield around 1.297%.

European markets, except a 0.4% higher FTSE, lost upto 0.4%.

North Korea fired what looked to be a ballistic missile near its coast. The missile reportedly landed in the Sea of Japan after staying in the air for 6 minutes.

AT HOME

It was yet another blockbuster day as benchmark indices climbed 0.9% each to close at record high. Sensex soared 278 points to settle at 31028 while Nifty finished at 9595, up 85 points. BSE mid-cap and small-cap indices added 2.1% and 1.6% respectively. Except a 0.8% lower Healthcare index, all the BSE sectoral indices closed in green with Metal and Energy indices leading the tally, up 3.4% and 2.2% respectively.

For the week, Sensex and Nifty gained 1.8% each, extending the winning streak to third consecutive week.

FIIs net sold stocks and stock futures worth Rs 274 cr and 68 cr respectively but net bought index futures worth Rs 884 cr. DIIs were net buyers to the tune of Rs 1009 cr.

Rupee gained 18 paise to end at 64.44/$.

Sun Phrma reported 14% y-o-y dip in March quarter profit at Rs 1224 cr. Income from operation fell 7% to Rs 7137 cr. EBIDTA plunged 32% to Rs 1548 cr and margins contracted 800 bps to 21.7%.

Tech Mahindra reported in line with estimated revenue but lower than expected margin and profit figures. Dollar revenue rose 1.3% to 1131 mn. In rupee terms Revenue fell 0.8% q-o-q to Rs 7495 cr and PAT plunged 30% to Rs 590 cr. EBIDTA fell 24% to Rs 899 cr and margin fell 371 bps to 12%.

OUTLOOK

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

In Friday's report we had mentioned that "9533, the top made last week, is now the immediate hurdle to eye, upon crossover of which 9700 would be the next target".

Nifty soared 85 points on Friday to touch a high of 9604 before closing at 9595, crossing 9533 hurdle and moving towards 9700 target.

9700-9725 continues to be  next target area. Immediate support on the hourly chart has moved up to 9450, with the stop-loss of which trading longs should be held on to.

LT, BHEL and Powergrid will report their quarterly earnings today.

US markets will be closed today for Memorial Day. U.K. will also be closed for the spring bank holiday.