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.