NIFTY REBOUNDS FROM 11850 SUPPORT

NIFTY REBOUNDS FROM 11850 SUPPORT

WORLD MARKETS

Dow ended flat while S & P 500 and Nasdaq gained 0.2% and 0.3% respectively,  led by strong gains in Disney and Facebook shares.

Disney rose more than 1% after launching its Disney+ streaming service. Facebook gained 2.6% after announcing a new payments tool that can be used through its applications.

Trump told the Economic Club of New York that China wants to make a trade deal, but offered little details on how negotiations were progressing. That came following recent conflicting comments over the possibility of scaling back tariffs as part of a potential deal between the two economic powerhouses.

European markets gained  0.5%-1.2% amid hopes that U.S. President Donald Trump will delay a decision on whether to impose tariffs on EU autos. U.K. unemployment fell to 3.8% in September, but wage growth came in weaker than expected at 3.6%. German ZEW survey indicating that economic sentiment jumped from -22.8 in October to -2.1 in November.

AT HOME

After falling about half a percent in morning session, benchmark indices recouped all the losses in noon to end little changed. Sensex settled at 40345, up 21 points while Nifty added 5 points to finish at 11913. BSE mid-cap and small-cap indices gained 0.3% and 0.2% respectively. BSE Bankex and Oil & Gas indices climbed 1.2% and 1% respectively, becoming top gainers among the sectoral indices while IT and FMCG indices were the top losers, down 0.7% and 0.6% respectively.

FIIs net bought stocks worth Rs 664 cr but net sold index futures and stock futures worth Rs 491 cr and 141 cr respectively. DIIs were net sellers to the tune of Rs 245 cr.

Rupee depreciated 16 paise to end at 71.45/$.

Inudstrial production contracted for the 2nd month in a row as IIP in September shrank by -4.3 after falling 1.1% in October, marking 8 year low.

Coal India reported better-than-expected numbers with net profit rising 14.2% y-o-y to Rs 3523 cr. Revenue fell 6.9% to Rs 20383 cr, EBITDA was down 16.5% at Rs 3611 cr and margin fell 210 bps to 17.7%.

Hindalco reported mixed set of numbers with Aluminium business missing estimates while Copper segment was better-than-expected.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-1.4% while SGX Nifty is suggesting about 20 points lower start for our market.

In Monday's report we has said that that 11850 continued to be immediate support while 12103 continued to be immediate hurdle.

Nifty, after touching a low of 11853, rebounded to end at 11913, holding on to 11850 support and vindicating our view.

11850 continues to be important immediate support, a breach of which will confirm a "sell" on the hourly chart and would pave the way for further weakness. If that happens, 11700 would be the next support to eye.

12103 continues to be upside hurdle.