TRAIL STOP-LOSS TO 9825

TRAIL STOP-LOSS TO 9825

WORLD MARKETS                             

US indices ended little changed with marginally lower Dow and S & P 500 and marginally higher Nasdaq.

BlackRock posted quarterly results that missed estimates on both revenue and profit.

Brent and WTI crude declined 1% to settle at $48.82 a barrel and $46.02 respectively. Copper prices rose to trade at their highest levels since February.

European markets, except a 0.4% higher FTSE, lost upto 0.4%. Basic resources were the top gainers following better-than-expected Chinese GDP data which grew at 6.9% in second quarter.

AT HOME

Sensex and Nifty ended with modest gains to set a fresh record high. Sensex added 54 points to settle at 32075 while Nifty finished at 9916, up 30 points. BSE mid-cap and small-cap indices however ended barely in the green. BSE Realty and Basic Material indices climbed 1.3% and 1% respectively, becoming top gainers among the sectoral indices while FMCG index nosedived 1.5%, becoming top loser, followed by 0.1% lower Capital Goods index.

FIIs net bought stocks, index futures and stock futures worth Rs 329 cr, 279 cr and 72 cr respectively. DIIs were net sellers to the tune of Rs 447 cr.

Rupee appreciated 10 paise to end at fresh 1-month high of 64.35/$.

The Goods and Services Tax (GST) Council yesterday increased the cess on cigarettes, giving out a strong message that any reduction in taxation on demerit goods will not be accepted.

The Gujarat high court today dismissed Essar Steel’s petition that had challenged the Reserve Bank of India’s (RBI) directive to banks for initiating insolvency proceedings against the company.

ACC reported better-than-expected earnings as consolidated net profit rose 32.6% y-o-y to Rs 326 cr. Revenue rose 20.5% to Rs 3959 cr. Operating profit shot up 38% to Rs 637 cr and margin expanded by 240 bps to 18.4%. Cement volume increased 10.1% to 6.74 mt.

OUTLOOK

Today morning, except a marginally higher Hang Seng, other Asian markets are trading with cuts of upto 0.6% and SGX Nifty is suggesting about 25 points lower start for our market.

Nifty yesterday touched a high of 9928 before closing at 9916, coming very close to the 9950-10000 target area we have been working with after 9710 hurdle was taken out.

9950-10000 continues to be upside target as well as resistance area. Immediate support on the hourly chart has moved up to 9825, with the stop-loss of which existing longs should be held on to.

Ultratech Cement and HUL will report their quarterly earnings today.