10950 ACHIEVED, 11000 NEXT; TRAIL STOP-LOSS TO 10820

10950 ACHIEVED, 11000 NEXT; TRAIL STOP-LOSS TO 10820

WORLD MARKETS

US indices gained 0.2%-0.6% following a deal to end a government shutdown and as earnings reports remained solid.

The stopgap bill approved by the Senate will keep the U.S. government open through Feb. 8

European markets, except 0.2% lower FTSE, gained 0.2%-1%

AT HOME

It was yet another record setting day as Sensex and Nifty soared 0.8% and 0.7% respectively to end at fresh record highs. Sensex added 286 points to settle at 35798 while Nifty finished at 10966, up 71 points. BSE mid-cap and small-cap indices gained 0.6% and 0.8% respectively. Except 1.5% and 0.5% lower Telecom and Utilities indices, all the BSE sectoral indices ended in green with Energy and IT indices leading the tally, up 2.4% and 2% respectively.

FIIs net bought stocks and stock futures worth Rs 1568 cr and 1077 cr respectively but net sold index futures worth Rs 1804 cr. DIIs were net sellers to the tune of Rs 462 cr.

Rupee depreciated 2 paise to end at 63.87/$.

IMF raise global growth forecast this year and next to 3.9%, up 0.2% from its previous forecast. For India, forecasts were unchanged at 7.4% and 7.8% for 2018 and 2019 respectively.

Asian Paints reported less-than-expected revenue and volume growth but strong operational performance. Consolidated net profit rose 16% to Rs 567 cr while revenue remained flat at Rs 4267 cr. Volume growth was 7%.  

Axis Bank earnings beat expectations, with improvement in asset quality performance. Profit in December quarter grew by 25.3% year-on-year to Rs 726.4 cr. NII grew by 9.2% to Rs 4732 cr. Asset quality improved during the quarter as gross non-performing assets (as a percentage of gross advances) declined to 5.28% from 5.90% in previous quarter and net NPAs were lower at 2.56% from 3.12% QoQ. Slippages declined 50% q-o-q.

OUTLOOK

Today morning Asian markets are trading with gains of 0.3%-0.7% and SGX Nifty is suggesting about 35 points higher start for our market.

Nifty yesterday touched a high of 10975 before closing at 10966, achieving the 10950 target we had given when 10490 hurdle was taken out on 22nd December.

A higher start today would see Nifty achieving our next big target of 11000, which we had projected way back in April 2017 when 9119 resistance was taken out after a consolidation of two years. 11030 would be the next intraday level if Nifty sustains above 11000.

Immediate support on the hourly chart has moved up to 10820, with the stop-loss of which, existing longs should be held on to.

Indiabulls Housing and United Spirits will report their quarterly earnings today.