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.