NIFTY ON TRACK TO ACHIEVE 10440 TARGET; TRAIL STOP-LOSS TO 10270

NIFTY ON TRACK TO ACHIEVE 10440 TARGET; TRAIL STOP-LOSS TO 10270

WORLD MARKETS                             

Nasdaq ended flat while Dow and S & P 500 fell about a third of a percent following news that planned tax cuts could be phased.

Media reports suggested that corporate tax rate would be lowered by three percentage points each year from the existing 35% beginning in 2018 to reach 20% buy 2022.

Brent crude rose 46 cents to $60.90 and WTI rose 25 cents to $54.15 a barrel.

Main European markets ended mixed with modest changes but Spain soared 2.4%

AT HOME

Benchmark indices gained about a third of a percent to hit fresh record high. Sensex gained 109 points to settle at 33266 while Nifty finished at 10364, up 41 points. BSE mid-cap and small-cap indices soared 1.1% and 1.2% respectively. Except 0.4% and 0.2% lower FMCG and Metal indices respectively, all the BSE sectoral indices ended in green with Consumer Durable and Realty indices leading the tally, up 2.4% and 2.1% respectively.

FIIs net sold stocks worth Rs 186 cr but net bought index futures and stock futures worth Rs 191 cr and 125 cr respectively. DIIs were net buyers to the tune of Rs 140 cr.

Rupee appreciated 20 paise to end at 64.85/$.

Tata Steel reported consolidated net profit of Rs 1018 cr against a loss of Rs 49 cr during the same period last year. Revenue rose 36% to Rs 32464 cr. EBITDA rose 54% to Rs 4,720.5 crore, while the operating margin came in at 14.54% against 11.85%. EBIDTA per tonne for Indian operations stood at  Rs 12500 and for Europe, it was $45 which were lower than estimates.

HDFC reported a standalone net profit growth of 15% at Rs 2101 cr. NII grew by 13.7% to Rs 2612 cr. Net Interest Margin stood at 3.9%, up 5 bps y-o-y but down 10 bps q-o-q.

Lupin posted 31% dip in net profit at Rs 455 cr. Revenue fell 8% to Rs 3952 cr. EBIDTA fell 10% to Rs 1047 cr while margins dipped 56 bps to 27%.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto 0.4% and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that after Nifty had crossed 10252 top made in mid-October, we had given a target of 10380. Nifty yesterday touched a high of 10384 before closing at 10363, achieving this target and vindicating our view.

Recently, when the 10340 top made after the gap up opening following the bank recapitalisation news was taken out, we had given a target of 10440 and that continues to be the next target to eye.

Immediate support on the hourly chart has moved up to 10240, with the stop-loss of which trading longs should be held on to.

The Federal Open Market Committee will begin its own two-day meeting  today and is due to make its interest rates decision on Wednesday.

STAY LONG WITH THE STOP-LOSS OF 10235 FOR TARGET OF 10440

STAY LONG WITH THE STOP-LOSS OF 10235 FOR TARGET OF 10440

WORLD MARKETS                             

Dow and S & P 500 gained 0.1% and 0.8% respectively while Nasdaq soared 2.2% on Friday on strong quarterly earnings reports from big tech companies.

US Gross domestic product rose 3% in third quarter, above the 2.5% forecast.

Nasdaq saw its biggest one-day gain since November 2016 as Amazon, Microsoft and Google-parent Alphabet saw their stocks rise 13.2%, 6.4% and 4.3%, respectively. Amazon reported EPS of 52 cents, way ahead of an estimate of 3 cents a share. Microsoft posted its biggest one-day gain since October 2015 after its earnings beat Wall expectations by 12 cents a share. Google-parent Alphabet reported adjusted earnings per share of $9.57, well above estimate of $8.33 a share.

Brent crude climbed 1.9% to settle at $60.44 a barrel and U.S. crude surged 2.4% to settle at $53.90 after Saudi Arabia and Russia announced they supported extending an OPEC-led agreement to cut production.

The Spanish government dismissed Catalonia's parliament after it declared the region's independence on Friday. Spanish Prime Minister Mariano Rajoy announced regional elections would take place on Dec. 21.

In Europe, while main markets gained 0.2%-0.7%, Italy and Spain fell 0.6% and 1.4% respectively.

For the week, US indices gained 0.2%-1.1%. In Europe, while FTSE lost 0.2%, CAC and DAX soared 2.3% and 1.7% respectively. In Asia, Nikkei soared 2.6%, Shanghai was up 0.2% but Hang Seng fell 0.2%.

AT HOME

Sensex ended marginally in the green while Nifty lost 0.2% on the last day of the week. Sensex ended at 33157, up 10 points while Nifty lost 21 points to finish at 10323. BSE mid-cap and small-cap indices gained 0.3% respectively. BSE Telecom index tumbled 5.1%, becoming top loser among the sectoral indices, followed by 1.6% lower Energy index. Healthcare index climbed 1.6%, becoming top gainer, followed by 0.8% higher Auto and Industrial indices.

FIIs net sold stocks, index futures and stock futures worth Rs 641 cr, 66 cr and 224 cr respectively. DIIS were net buyers to the tune of Rs 57 cr.

Rupee depreciated 23 paise to end at 65.05/$.

For the week, Sensex and Nifty gained 2.4% and 1.7% respectively.

Maruti reported better-than-expected earnings on all counts. Revenue rose 21.8% to Rs 21768 cr. EBIDTA rose 21.1% to Rs 3677 cr and EBIDTA margin stood at 16.9% as against 17%. Net profit was up 3% at Rs 2484 cr.

ITC reported 5.6% rise in net profit at Rs 2640 cr. Revenue rose 6.8% to Rs 10314 cr. Operating profit was up 3.6% at Rs 3761.5 cr and margin dipped to 36.52% from 37.6%.

OUTLOOK

Today morning, Asian markets are trading with gains of upto 0.7% and SGX Nifty is suggesting about 40 points higher start for our market.

After Nifty crossed the 10340 top made on Wednesday following the Bank recapitalisation news, we had given next target of 10440. Nifty, on Friday fell 21 points to end at 10323 but is set to open higher today.

10440 continues to be next upside target.  Immediate support on the hourly chart has moved up to 10235, with the stop-loss of which, trading longs should be held on to.

HDFC, Tata Steel, UPL, Bharti Infratel and Lupin will report their quarterly earnings today.

STAY LONG WITH THE STOP-LOSS OF 10230 FOR NEXT TARGET OF 10440

STAY LONG WITH THE STOP-LOSS OF 10230 FOR NEXT TARGET OF 10440

WORLD MARKETS                             

Dow and S & P 500 gained 0.3% and 0.1% respectively while Nasdaq fell 0.1%.

Nike led advancers on the Dow, rising 3.4% after the company raised growth target. Twitter soared 18.5% after the company posted earnings per share and revenue that beat expectations. Ford rose 2% after reporting better-than-expected quarterly results and raising full-year guidance.

The House narrowly passed a Senate version of the 2018 budget, marking a significant step toward the GOP passing tax reform.

Euro tumbled after the European Central Bank said it would reduce monthly asset purchases to 30 billion euros ($35 billion) from 60 billion euros beginning in January 2018. Those purchases would extend until September next year.

Dollar index surged more than a percent to 94.65, it’s highest level in more than 3-months.

Brent crude rose 1.5% to $59.30 a barrel, its highest close in 27 months. U.S. crude added 0.9% to settle at $52.64.

European markets climbed 0.5%-1.9%.

AT HOME

Sensex and Nifty gained 0.3% and 0.5% respectively, extending the winning streak to fourth straight day and hitting a fresh record intraday and closing high. Sensex added 105 points to settle at 33147 while Nifty finished at 10344, up 48 points. BSE mid-cap and small-cap indices gained 0.5% and 0.6% respectively. BSE Oil & Gas and Metal indices soared 2.2% and 2.1% respectively, becoming top gainers among the sectoral indices while Consumer Durable and Telecom indices were the top losers, down 0.8% and 0.6% respectively.

FIIs net sold stocks and index futures worth Rs 376 cr and 515 cr respectively but net bought stock futures worth Rs 837 cr. DIIs were net sellers to the tune of Rs 524 cr.

Rupee appreciated 8 paise to end at 64.82/$.

Yes Bank reported a sharp rise in bad loans following the RBI’s supervisory assessment even though profitability was in line with Street expectations. Net profit rose 25% to Rs 1003 cr and NII was up 33.5% at Rs 1885 cr. Gross NPA ratio worsened to 1.82% from 0.92% q-o-q. The bank reported a divergence in gross bad loans of Rs 6,355 crore for FY17.

OUTLOOK

Today morning, Asian markets, except a marginally lower Shanghai, are trading with gains of 0.3%-0.6% and SGX Nifty is suggesting a marginally higher start for our market.

In yesterday's report we had said that 10340, the top made Wednesday, is the immediate hurdle above which 10440 would be the next target to eye.

Nifty yesterday gained 48 points to finish at 10344, taking out the 10340 hurdle decisively.

10440, as mentioned above, is the next upside target to eye. Immediate support on the hourly chart has moved up to 10230, with the stop-loss of which, trading longs should be held on to.

ICICI Bank, IOC, ITC and Maruti Suzuki will report their quarterly earnings today.

10440 ABOVE 10340; TRAIL STOP-LOSS TO 10200

10440 ABOVE 10340; TRAIL STOP-LOSS TO 10200

WORLD MARKETS                             

US indices fell half a percent, marking the biggest fall since September 5th, on the back of disappointed earnings releases and rising yields.

Boeing fell 2.8% after two of its businesses saw declines in revenue compared to last year. Chip maker Advanced Micro Devices saw its shares plunge 13.5% on disappointing guidance.

The benchmark 10-year yield hit its highest level since March, trading near 2.43% after New home sales jumped 18.9% in September to their highest level in 10-years and durable goods orders rose 2.2% in September, more than the expected increase of 1%.

European markets fell 0.5%-1%. Basic resources were among the worst performers on earnings. Germany's Ifo Business Climate rose in October to 116.7, from 115.3 in September. The U.K. economy grew by 0.4% in the third quarter of this year, beating market estimates.

AT HOME

Sensex and Nifty surged 1.3% and 0.9% respectively, extending the winning streak to third straight day and hitting a record intraday as well as closing high. Sensex settled at 33042, up 435 points while Nifty finished at 10295, up 88 points. BSE mid-cap index however gained just 0.4% while the Small-cap index in fact ended 0.2% lower. BSE Bankex shot up 4.7%, becoming top gainer among the sectoral indices, followed by 2% higher Industrial index. Consumer Durable and Healthcare indices were the top losers, down 1.3% and 1.1% respectively.

FIIs net bought stocks and stock futures worth Rs 3583 cr and 2009 cr respectively but net sold index futures worth Rs 1098 cr. DIIs were net sellers to the tune of Rs 157 cr.

Rupee appreciated 17 paise to end at 64.90/$.

HUL reported a 16.4% y-o-y rise in standalone net profit at Rs 1276 cr. Volume growth stood at 4%. Revenue rose 6%, EBIDTA rose 19.7% and margin rose by 180 bps.

HCL Technologies reported 0.8% q-o-q growth in consolidated net profit at Rs 2,188 crore. Consolidated rupee revenue and dollar revenue increased 2.3% each quarter-on-quarter to Rs 12,434 crore and USD 1,928 million. EBIT grew by 0.3% to Rs 2,451 crore but margin contracted 40 basis points to 19.7%. The company maintained its full year constant currency revenue growth guidance at 10.5%-12.5% and EBIT margin guidance at 19.5%-20.5%, but raised full year dollar revenue guidance to 12.1%-14.1% from 11.3%-13.3% earlier.

Kotak Mahindra Bank reported 22.3% rise in standalone net profit at Rs 994 cr. NII rose 16% to Rs 2313 cr. Gross NPA ratio improved to 2.47% from 2.58% q-o-q and net NPA ratio stood at 1.26% as against 1.25%.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 20 points lower start for our market.

Readers would recall that we had advised holding on to long positions with the stop-loss of 10223, the low made on the Muhurat trading day, and had said that once 10252 hurdle is taken out, 10380 would be the next target.

Nifty yesterday touched a high of 10340 before closing at 10295, and is set to open lower today.

10340, the top made yesterday, is now the immediate hurdle upon crossover of which 10440 would be the next target to eye.

Immediate support on the hourly chart has now moved up to 10200, with the stop-loss of which, trading longs should be held on to.

European Central Bank will be meeting today to review monetary policy and markets would await details regarding tapering in its asset buying program.

NIFTY SET TO CROSS 10252 HURDLE; 10380 NEXT

NIFTY SET TO CROSS 10252 HURDLE; 10380 NEXT

WORLD MARKETS                             

S & P 500 and Nasdaq rose 0.2% each while Dow surged 0.7% on the back of strong quarterly results from 3M, Caterpillar and United Technologies.

News reports suggested that House and Senate leaders laid out a schedule for drafting and releasing tax reform legislation in the next few weeks. Another media report suggested that House Republicans will unveil a tax bill on Nov. 1.

The flash U.S. Composite PMI rose to 55.7 in October, hitting a nine-month high. The Richmond Fed survey of manufacturing activity showed a slowdown in manufacturing activity in October.

Brent crude added 1.7% to settle at $58.33 a barrel and U.S. crude rose 1.1% to $52.47 after Saudi Arabia's energy minister had said cutting oil inventories to a five-year average was still a priority.

Main European markets ended marginally higher while Italy surged 1.1% and Spain gained 0.4%. Eurozone Composite PMI dropped to 55.9 in October, down from 56.7 in September.

AT HOME

Benchmark indices ended with modest gains to extend winning streak to second straight day. Sensex added 101 points to settle at 32607 while Nifty finished at 10208, up 23 points. BSE mid-cap and small-cap indices rose 0.2% and 0.6% respectively. BSE Power and Utlities indices climbed 1.3% each, becoming top gainers among sectoral indices while IT and Healthcare indices were top losers, down 0.8% and 0.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1307 cr, 1348 cr and 376 cr respectively. DIIs were net buyers to the tune of Rs 592 cr.

Rupee depreciated 5 paise to end at 65.07/$.

The government yesterday announced a Rs 2.11 lakh crore recapitalisation plan for public sector banks spread over two years in a bid to shore up their finances, boost private investment and revive the economy. Government will infuse Rs 1.35 lakh crore through recapitalisation bonds and Rs 76,000 crore through budgetary support and market raising.

Also approved was a mega infrastructure program which will cover 83,677 km of roads and will involve a capital expenditure of Rs 6.92 lakhs crore over the next 5 years. This includes Bharatmala Pariyojana (34800 km), Economic Corridors (9000 km), Inter Corridor and Feeder Route (6000 km), National Corridors Efficiency Improvement (5000 km), Border Roads and International Connectivity (2000 km), Coastal Roads and Port Connectivity (2000 km), Green field Expressways (800 km), National Highway Development (NHDP) works (10,000 km).

Infosys reported a beat on net profit but a cut in revenue guidance and no significant update on the CEO front were the negatives. Dollar revenue grew 2.9%q-o-q (2.2% in constant currency terms) to USD 578 mn. In rupee terms, revenue rose 2.9% to Rs 17567 cr and net profit rose 7% to Rs 3726 cr. The company cut full year constant currency revenue growth forecast to 5.5%-6.5% from earlier 6.5%-8.5%.

Asian Paints' net profit and margin surpassed market estimates. Net profit climbed 21% to Rs 576 cr y-o-y. Revenue rose 2.3% to Rs 4274 cr. EBIDTA rose 13.5% to Rs 801 cr and operating margin contracted to 18.8% from 19%.

HDFC Bank reported 20% y-o-y rise in net profit at Rs 4151 cr. Gross NPA ratio stood at 1.26%, up from 1.24% sequentially. Loan book grew 22.3% to Rs 6.05 lakh cr. NII rose 22% to Rs 9751 cr. Net interest margins dropped marginally to 4.3% from 4.4%.

Zee Entertainment Enterprises Ltd.’s posted better-than-estimated quarterly earnings driven by an exceptional gain on sale of its sports broadcast business. Net profit rose to Rs 591 cr from Rs 238 cr y-o-y. Revenue fell 6.7% to Rs 1582 cr. Advertising revenue rose 2.9% to Rs 987 cr while subscription revenue fell 14% to Rs 501 cr.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 75 points higher start for our market.

Readers would recall that we have been positive since 34-DMA hurdle placed at 9930 was taken out on 6th October. More recently, after the correction on the Muhurat trading day, we had asked to trail the stop loss to 10123 and had also said that once 20252, the top made on 17th October is taken out, 10380-10400 would be the next target area to eye.

Nifty yesterday closed at 10208 and is set to open around 10300 today. A crossover of the first hour high would mark a fresh breakout from last couple of days' consolidation and 10380-10400 would be the next target in that case.

Meanwhile 10123 continues to be immediate support, with the stop-loss of which, long positions should be held on to.

HCL Tech, HUL and Kotak Mahindra Bank will report their quarterly earnings today.

NIFTY REBOUNDS FROM 10123 SUPPORT; 10252 IS THE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM 10123 SUPPORT; 10252 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices, weighed down by plunge in GE, fell 0.2%-0.6%, with the Dow snapping 6-day winning streak.

General Electric shares fell 6.3%, marking their biggest one-day decline since August 2011. The company had reported earnings on Friday which fell short of market expectations.

Brent crude settled down 38 cents at $57.37 a barrel and U.S. crude rose 6 cents to $51.90.

European markets, except 0.6% lower Spain, ended marginally higher. The Spanish government has urged Catalans to accept its decision to dismiss their secessionist leadership amid speculation that the regional President, Carlos Puigdemont, is planning to press ahead with a unilateral declaration of independence.

AT HOME

After falling nearly a percent from morning highs, benchmark indices recouped most of the losses in noon trade to end higher by four tenth of a percent. Sensex settled at 32507, up 117 points while Nifty added 38 points to finish at 10185. BSE mid-cap and small-cap indices gained 0.4% and 0.1% respectively. BSE Telecom index soared 2.8%, becoming top gainer among sectoral indices, followed by 1.8% higher Energy index. FMCG and Healthcare indices were top losers, down 0.7% and 0.6% respectively.

FIIs net sold stocks and index futures worth Rs 82 cr and 657 cr respectively but net bought stock futures worth Rs 111 cr. DIIs were net buyers to the tune of Rs 308 cr.

Rupee appreciated 2 paise to end at 65.02/$.

Indiabulls Housing reported 26% rise in September quarter net profit at Rs 861 cr. NII rose 27% to Rs 1390 cr. Loan book grew at 33% to Rs 1 lakh cr. Gross NPA stood at a multi-quarter low of 0.78%.

OUTLOOK

Today morning, Asian markets are trading flat to modestly lower and SGX Nifty is suggesting a marginally lower start for our market.

In yesterday's report we had said that 10123, the low made on Muhurat trading day, is the immediate support, with the stop-loss of which, trading longs should be held on to.

Yesterday, Nifty, after touching a low of 10124, rebounded smartly to end at 10185.

10123 continues to be immediate support, upon breach of which 34-DMA, placed around 10010, would be the next important support to eye. 10252, the top made last week, is the immediate hurdle above which 10380-10400 would be the next target area.

Traders are advised to hold long positions with the stop-loss of 10123.

HDFC Bank, Infosys, Ambuja Cement, Asian Paints and ZEEL will report their quarterly earnings today.

10123 IS THE IMMEDIATE SUPPORT; 10252 IMMEDIATE HURDLE

10123 IS THE IMMEDIATE SUPPORT; 10252 IMMEDIATE HURDLE

WORLD MARKETS                             

US indices climbed 0.4%-0.7% to hit record high on tax reform hopes.

The U.S. Senate passed a budget proposal Thursday that allowed Republicans to move closer to eventually passing tax reform.

GE shares closed 1% higher after falling as much as 6.3% on the company's downbeat results.

Main European markets ended flat but Italy and Spain gained 1% and 0.2% respectively. News on Catalonia suggested that Spain's central government would move to suspend the region's autonomy and Spanish government had agreed with the opposition Socialists to hold regional elections in January in Catalonia..

For the week, US indices gained 0.4%-2%. In Europe, FTSE fell -0.2%, DAX was flat and CAC gained 0.4%. In Asia, Nikkei climbed 1.4%, Shanghai was up 0.2% while Hang Seng was flat.

Japanese Prime Minister Shinzo Abe's ruling coalition secured a two-thirds "super majority" at Sunday's election. This points to a continuation of his Abenomics program, which includes the use of hyper-easy monetary policy. Following the news, the dollar surged to trade at 113.88 yen, its highest levels in three months.

AT HOME

On the Muhurat trading day, benchmark indices opened flat but saw a sustained downward move through one hour session to end lower by 0.6%. Sensex fell 194 points to settle at 32390 and Nifty finished at 10147, down 64 points. BSE mid-cap index fell 0.25% but small-cap index rose 0.1%.

BSE Bankex tumbled 1.3%, becoming top loser among the sectoral indices, followed by 0.9% lower Metal and Finance indices. Telecom index surged 1.5%, becoming top gainer, followed by 0.2% higher Teck index.

For the week, Sensex and Nifty lost 0.1% and 0.2% respectively, breaking two-week winning streak.

OUTLOOK

Today morning, Nikkei is up nearly a percent, other Asian markets are trading with modest gains and SGX Nifty is suggesting about 50 points higher start for our market.

In Wednesday's report we had reiterated the view that 10100 is the immediate support, with the stop-loss of which trading longs should be held on to.

Nifty on Wednesday fell 24 points to finish at 10211 and tumbled 64 points on Thursday to settle at 10147 but is set to open around 10200 today.

10123, the low made last week, is now the immediate support, a breach of which will confirm a sell on the hourly chart and if that happens, 34-DMA, placed around 10000, would be next important target as well as the support to eye.

On the way up, 10252, the top made last week, is now the immediate hurdle above which 10380-10400 would be the next target area.

Traders are advised to keep stop-loss of 10123 in long positions.

Havells, Indiabulls Housing and Hindustan Zinc will report their quarterly earnings today.

NIFTY CONSOLIDATES AFTER 3-DAY SPRINT; 10100 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY CONSOLIDATES AFTER 3-DAY SPRINT; 10100 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

Dow and S & P 500 gained 0.2% and 0.1% respectively while Nadaq ended flat with Dow breaking above 23000 for the first time on intraday basis.

UnitedHealth reported a stronger-than-expected quarterly profit and raised its full-year adjusted earnings forecas. Johnson & Johnson also reported better-than-expected quarterly results. Goldman Sachs' earnings and revenue beat Wall Street expectation; the stock however fell 2.6%.  Netflix posted better-than-expected earnings and revenue, but stock fell 1.6%.

European markets, except a 0.4% higher Spain, fell upto 0.4%.

AT HOME

It was a day of consolidation as benchmark indices ended little changed after trading in a narrow range through the session. Sensex lost 24 points to settle at 32609 while Nifty finished at 10234, up 4 points. BSE mid-cap and small-cap indices however outperformed, rising 0.4% and 0.5% respectively. BSE Telecom index soared 2.8%, becoming top gainer among the sectoral indices, followed by 0.7% higher Oil & Gas index.

FIIs net sold stocks and stock futures worth Rs 484 cr and 8 cr but net bought index futures worth Rs 258 cr. DIIs were net buyers to the tune of Rs 809 cr.

Rupee depreciated 31 paise to end at 65.03/$.

Axis Bank reported a 35.5% rise in net profit backed by lower provisions towards the bad loans (dip by 13%), fee income growth (12% rise) and stable loan growth (16%). However, the gross NPAs, including the divergences, jumped 67% to Rs 27,402 crore from Rs 16,379 crore and net NPAs nearly doubled to Rs 14,052 crore from Rs 7761 crore a year ago. Non-watchlist slippages surged to Rs 6505 cr, up from 2722 cr q-o-q.

Wipro's consolidated net profit increased 5.5% sequentially to Rs 2,191.7 crore, driven by fall in total expenses, lower finance cost and higher other income. Consolidated evenue from operations fell 1.4% to Rs 13,468.7 cr. IT services business grew by 1.1%. IT services revenues in dollar terms grew by 2.1% to USD 2,013.5 million and constant currency growth was at 0.3%. For Q3FY18, Wipro expects revenues from IT services business to be in the range of USD 2,014-2,054 million, a growth of 0-2% over Q2. Revenues largely matched expectations but constant currency growth and Q3 guidance missed estimate.

Bajaj Auto reported better-than-expected numbers. Net profit fell 0.6% y-o-y dip to Rs 1194 cr, hit by slow sales growth, lower other income and higher raw material cost. Revenue rose 2% to Rs 6566 cr. Operating profit was up 0.2% at Rs 1297 cr but margin contracted by 170 bps to 19.7%.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 30 points lower start for our market.

After rising more than 250 points in 3 sessions, Nifty consolidated yesterday by closing 4 points higher after trading in a narrow range and is set to open lower today.

10100 continues to be immediate support on the hourly chart with the stop-loss of which, existing longs should be held on to. 10310 is the immediate target above which 10600-10650 would be the next major target to eye.

Ultratech will report its quarterly earnings today.

NIFTY TAKES OUT 10200 HURDLE; TRAIL STOP-LOSS TO 10100 FOR TARGET OF 10600

NIFTY TAKES OUT 10200 HURDLE; TRAIL STOP-LOSS TO 10100 FOR TARGET OF 10600

WORLD MARKETS                             

US indices gained 0.2%-0.4% to hit fresh record highs.

Telecommunications and financials lead advancers. Healthcare stocks slipped on Trump's comment that Trump prescription drug prices are "out of control.

Netflix reported earnings and revenues that beat expectations.

Commodities gained on the back of better-than-expected China producer prices. Copper cracked the $7,000 per ton level, reaching heights not seen since 2014.

Oil rose on reports that Iraqi forces had captured parts of Kirkuk, an oil-rich city controlled by Kurdish forces. Brent surged 1.1% to $57.82 and U.S. crude settled up 0.8% at $51.87.

European markets are trading mixed with modest changes. Spain fell 0.8% as political uncertainty drags on. Balance of trade data for the euro area showed a surplus of 16.1 billion euros in August from 17.5 billion last year.

AT HOME

Benchmark indices climbed six tenth of a percent, extending the winning streak to third straight day and hitting record intraday as well as closing highs. Sensex added 201 points to settle at 32664 while Nifty finished at 10231, up 63 points. BSE mid-cap and small-cap indices gained 0.5% and 0.3% respectively. Except 0.13% and 0.01% lower Power and Finance indices respectively, all the BSE sectoral indices ended in green with Telecom and Metal indices leading the tally, up 4.2% and 2% respectively.

FIIs net sold stocks and stock futrues worth Rs 30 cr and 175 cr respectively but net bought index futures worth Rs 2486 cr. DIIs were net buyers to the tune of Rs 273 cr.

Rupee appreciated 25 paise to end at 64.68/$.

India's wholesale inflation moderated to 2.60% in September from 3.24% in August.

OUTLOOK

Today morning, except a modestly lower Shanghai, other Asian markets are trading with modest gains and SGX Nifty is suggesting a marginally higher start for our market.

Nifty yesterday soared 63 point to end at 10231, taking out the resistance presented by the trendline adjoining tops made in August and September. Next major target comes to around 10600.

Immediate support on the hourly chart has moved up to 10100, with the stop-loss of which trading longs should be held on to.

Axis Bank, ACC, Bajaj Auto and Wipro will report their quarterly earnings today.

NIFTY ACHIEVES 10180 TARGET; TRAIL STOP-LOSS TO 10045

NIFTY ACHIEVES 10180 TARGET; TRAIL STOP-LOSS TO 10045

WORLD MARKETS                             

US indices gained 0.1%-0.2% to hit fresh record highs on Friday.

The consumer price index rose 0.6% last month, below the expected gain of 0.7%. Retail sales rose 1.6%, the expected increase being 1.7%.

Treasury yields fell on the data, with the benchmark 10-year yield at 2.28%. Dollar initially slid but later recouped losses.

Bank of America jumped 1.5% on better-than-expected earnings.

Earlier, data showed China September exports rose 8.1%—in dollar terms—compared to a year ago, while imports rose 18.7%.

Oil prices surged on the back of robust China import data and after news that President Donald Trump had not reimposed sanctions on Iran. Brent crude rose 1.6% to settle at $57.17 a barrel and WTI advanced 1.7% to settle at $51.45.

European markets ended mixed with modest changes.

For the week, US indices gained 0.2%-0.4%. In Europe, FTSE and DAX gained 0.2% and 0.3% respectively but CAC fell 0.2%. In Asia, Nikkei soared 2.2% while Shanghai and Hang Seng gained 0.2% and 0.1% respectively.

In a speech on Sunday, Fed Chair Yellen indicated that inflation was likely to improve despite the unexpectedly low levels seen this year.

AT HOME

Sensex and Nifty climbed 0.8% and 0.7% respectively, with Nifty closing at record high while Sensex closed at the highest level since 1st August. Sensex soared 250 points to settle at 32432 while Nifty added 71 points to finish at 10167.  BSE mid-cap and small-cap indices underperformed, gaining just 0.04% and 0.1% respectively. BSE Telecom index soared 5.3%, becoming top gainer among the sectoral indices, followed by 1.3% higher Bankex. Healthcare and FMCG indices were the top losers, down 0.3% and 0.2% respectively.

FIIs net sold stocks worth Rs 1699 cr but net bought index futures and stock futures worth Rs 808 cr and 363 cr respectively. DIIs were net buyers to the tune of Rs 1590 cr.

Rupee appreciated 17 paise to end at 64.92/$.

For the week, Sensex and Nifty gained 1.9% each, extending the rising streak to second consecutive week.

Reliance Industries reported mixed set of earnings with Revenue and margin beating estimates while GRMs, though hit 9-year high at $12 per barrel, were below estimates. Jio numbers were good with the business reporting positive EBIDTA and average revenue per user of Rs 156.

India's trade deficit narrowed to a 7-month low of $8.98 bn in September as export rose at 25.6%, the highest pace in 6-months to USD 28.61 bn and imports rose 18%.

OUTLOOK

China's September CPI is up 1.6%, meeting expectation.

Asian markets are trading with gains of upto 0.8% and SGX Nifty is suggesting about 35 points higher start for our market.

Readers would recall that after Nifty took out 34-DMA hurdle of 9930, we have been recommending holding on to long positions with a trailing stop-loss. We had given targets of 10015 and 10180.

Nifty on Friday touched a high of 10192 before closing at 10167, achieving the 10180 target and vindicating our view.

A rising trendline adjoining tops made in August and September presents a resistance around 10200, a decisive crossover of which will mark a fresh breakout and next major target of 10600 would come into picture.

Meanwhile, immediate support on the hourly chart has moved up to 10045, with the stop-loss of which, existing longs should be held on to.

India's WPI for September would be released today and is expected to show a reading of 3.3%.

NIFTY ACHIEVES 10100 TARGET; TRAIL STOP-LOSS TO 9955

NIFTY ACHIEVES 10100 TARGET; TRAIL STOP-LOSS TO 9955

WORLD MARKETS                             

US indices fell 0.1%-0.2% after major U.S. financials reported quarterly results.

JPMorgan Chase reported third-quarter earnings and revenue that beat analyst expectations. Fixed income trading revenue however, fell 27% y-o-y. Citigroup also posted better-than-expected quarterly results but concerns about rising credit costs drove the stock lower by more than 3%.

U.S. producer prices increased 0.4% on month and 2.6% y-o-y in September. Weekly jobless claims totaled 243,000, hitting a more than one-month low.

Treasury yields slipped with the two-year yield at 1.517% and the benchmark 10-year yield around 2.327%.

Brent crude fell 1.2% to settle at $56.25 a barrel and WTI lost 1.4% to settle at $50.6 after the International Energy Agency said that global stock builds, rising non-OPEC production and sluggish growth in demand could weigh on the oil price.

European markets ended mixed with modest changes. The pound initially slid on news of an impasse in Brexit negotiations, but later rose on a report that the U.K. could remain in the European Union for two more years. Data from France showed consumer prices were up 1.1% on the year in September, but 0.2% lower from the previous month.

AT HOME

Benchmark indices soared more than a percent to close at the highest level since 21st September, 2017. Sensex added 348 points to settle at 32182 while Nifty finished at 10096, up 112 points. BSE mid-cap and small-cap indices gained 1% and 1.2% respectively. All the BSE sectoral indices ended in green with Energy index leading the tally, up 2%, followed by 1.9% higher Telecom and Metal indices.

FIIs net sold stocks worth Rs 668 cr but net bought index futures and stock futures worth Rs 263 cr and 742 cr respectively. DIIs were net buyers to the tune of Rs 873 cr.

Rupee appreciated 5 paise to end at 65.09/$.

Indusind Bank reported 25% y-o-y growth in September quarter net profit at Rs 880 cr. NII jumped 24.7% to Rs 1821 cr. Gross NPA ratio improved to 1.08% from 1.09% sequentially while Net NPA ratio remained unchanged at 0.44%.

Retail inflation, measured by CPI, remained flat at 3.28% in September, as food prices remained steady, while fuel and housing prices witnessing modest growth during the month.

India’s industrial output grew sharply 4.3% in August, highest in nine months. The figure for July was revised lower to 0.9% from 1.2%.

TCS met expectations on dollar revenue front while margins were better-than-estimates. Net profit rose 2.1% q-o-q to Rs 6446 cr while revenue rose 3.2% to Rs 30541 cr. Dollar revenue rose 3.2% and constant currency growth stood at 1.7%.

OUTLOOK

Today morning, Nikkei is up 0.3% but Hang Seng and Shanghai are in the red. SGX Nifty is suggesting about 10 points lower start for our market.

In yesterday's report we had reiterated the view that 9920 is the immediate support, with the stop-loss of which, existing longs should be held on to.

Nifty yesterday soared 112 soared to end at 10096, achieving the 10100 target we had given after 10015 target was achieved.

10180, the top made in September, is now the next major target as well as the hurdle to eye. Immediate support on the hourly chart has moved up to 9955, with the stop-loss of which, existing longs should be held on to.

Reliance Industries will report its quarterly earnings today.