NIFTY REBOUNDS FROM 20-DMA SUPPORT; 12000 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM 20-DMA SUPPORT; 12000 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

US indices rose 0.4%-0.6% on the back of strong gains in Disney and energy share.

Disney rose 4.4% after Morgan Stanley raised his price target on the stock to $160 per share from $135.

Energy shares gained as US crude rose $1.14 or 2.2% to $52.22 a barrel and Brent gained $1.34 or 2.2% to $61.31 a barrel following attacks on two tanker ships off the coast of Iran that renewed fears of conflict in the Middle East after a series of strikes last month.

In Europe, FTSE and CAC were flat while DAX rose 0.4%. Germany raised 6.55 billion euros ($7.4 billion) in its auction of spectrum for 5G mobile services.

AT HOME

After falling about three fourth of a percent in the morning, benchmark indices recouped all the losses in noon trade to end little changed. Sensex settled at 39741, down 15 points while Nifty added 7 points to finish at 11914. BSE mid-cap and small-cap indices however ended with cuts of 0.3% and 0.5% respectively. BSE Realty and Power indices gained 0.6% each, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 0.8% and 0.6% respectively.

FIIs net bought stocks worth Rs 172 cr but net sold index futures and stock futures worth Rs 278 cr and 98 cr respectively. DIIs were net sellers to the tune of Rs 445 cr.

Rupee depreciated 17 paise to end at 69.51/$.

Indiabulls Housing soared after Abhay Yadav, who had filed a petition against promoter Sameer Gehlaut and the company over alleged fund misappropriation, withdrew his case in the Supreme Court.

Yes Bank nosedived after global brokerage house UBS slashed price target sharply by 47%, citing weak earnings going ahead.

OUTLOOK

Today morning, Nikkei and Shanghai are marginally higher while Hang Seng is off 0.4%. SGX Nifty is suggesting about 25 points lower start for our market.

In yesterday's report we had said that 11866, the low made on Wednesday, was the immediate support, below which, 11770, the bottom made last week, would be the important support.

Nifty broke 11866 support and went all the way to 11817, which roughly coincided with 20-DMA, from where it rebounded to end at 11914.

11819, the low made yesterday, is the immediate support to eye below which 11770, the low made last week, would be important support.

12000, the top made on Tuesday, continues to be immediate hurdle, upon crossover of which 12103, the top made last week, would be the next target.