STAY LONG WITH THE STOP-LOSS OF 10350; 10550 NEXT

STAY LONG WITH THE STOP-LOSS OF 10350; 10550 NEXT

WORLD MARKETS                             

US indices gained 0.1%-0.7% on Friday despite a mixed jobs report for October as markets focused on strong earnings.

US economy added 261000 jobs in October as against expected figure of 310000. The unemployment rate however, came in at 4.1%, a shade below the 4.2% forecast. Average hourly earnings remained flat.

Apple rose more than 2% after reporting strong quarterly earnings and issuing strong guidance for the current quarter.

Main European markets gained 0.1%-0.3% while Italy and Spain fell 0.1% and 1% respectively.

Also in focus in the region was Trump's tour of Asia, with Japan the first of the five nations on the itinerary. On his arrival in Japan, Trump warned that "no dictator" ought to "ever underestimate American resolve." The president will also visit South Korea, China, Vietnam and Philippines during his trip.

AT HOME

Benchmark indices ended higher by about a third of a percent to hit fresh record high. Sensex settled at 33686, up 112 points while Nifty added 29 points to finish at 10452. BSE small-cap index gained half a percent but the mid-cap index fell 0.1%. BSE Capital Goods index climbed 1.1%, becoming top gainer among the secoral indices, followed by 1% higher Bankex and Industrial index. Utilities and Healthcare indices were the top losers, down 0.6% each.

FIIs net sold stocks and index futures worth Rs 9691 cr and 418 cr respectively but net bought stock futures worth Rs 12 cr. Adjusted for Rs 10000 cr Bharti Airtel deal, FIIs were net buyers to the tune of Rs  360 cr. DIIs were net buyers to the tune of Rs 33 cr.

Rupee appreciated 6 paise to close at 64.55/$.

For the week, Sensex and Nifty gained 1.6% and 1.2% respectively, extending the winning streak to second consecutive week.

PNB reported better-than-expected 2% net profit growth at Rs 561 cr for the quarter ended September 2017 and even its asset quality improved over previous quarter. Net interest income grew by 3.5% to Rs 4,015.2 cr, with total advances growth of 4.2% at Rs 4.1 lakh crore. Gross NPA as a percentage of gross advances were lower at 13.31% compared with 13.66% in previous quarter and net NPA also declined to 8.4% from 8.67%.

Hindalco Industries' second quarter profit missed expectations, falling 10.7% year-on-year due to one-time loss but operational numbers beat estimates led by Novelis earnings. Revenue from operations increased 14.4% to Rs 10,308 cr. EBITDA jumped 20.2% to Rs 1,390 crore and margin expanded by 70 basis points to 13.5%.

OUTLOOK

Today morning, Asian markets, except a 0.3% higher Nikkei, are trading with cuts of 0.2%-1% and SGX Nifty is suggesting about 40 points lower start for our market.

Readers would recall that we have been positive on Nifty ever since 34-DMA hurdle placed ar 9930 was taken out on 6th of October and have been asking holding on to long positions with a trailing stop-loss.

Immediate support on the hourly chart has now moved up to 10350, with the stop-loss of which, existing longs should be held on to. Next target on the way up is placed around 10550 where upward sloping trendline adjoining tops made in September 2016 and August 2017 is placed.