12170-12200 CONTINUES TO BE RESISTANCE ZONE; 11900 BELOW 12010

12170-12200 CONTINUES TO BE RESISTANCE ZONE; 11900 BELOW 12010

WORLD MARKETS

After falling more than half a percent in the first half on concerns around the coronavirus, US indices rebounded sharply in second half to end with gains of 0.3%-0.4%.

World Health Organization declared a global health emergency over the the coronavirus outbreak, but at the same time, did not recommend travel to China be restricted and said the country had the situation under control.

The death toll in China from the coronavirus hit 171, with confirmed cases of the virus surpassing 8,000. The Centers for Disease Control and Prevention later confirmed the first human-to-human transmission of the virus in the U.S.

Microsoft rose 2.8% after reporting better-than-expected quarterly result. Tesla soared 10.3% after reporting second consecutive quarterly profit on record vehicle deliveries and vowed to produce over 500,000 units this yea. Facebook plunged more than 6% after reporting sharp rise in expenses and narrowing margins.

Brent fell $1.52, or 2.5%, to settle at $58.29 per barrel. WTI crude fell $1.19, or 2.2%, to $52.14 per barrel.

Main European markets tumbled 1.4% each. Euro zone sentiment jumped in January as manufacturing confidence rose to its highest level since August. Bank of England voted 7-2 to keep the base rate at 0.75%.

AT HOME

Sensex and Nifty slipped 0.7% and 0.8% respectively to close at the lowest level since 8th January, marking a 3-week low. Sensex settled at 40913, down 284 points while Nifty lost 93 points to finish at 12035. Nifty mid-cap and small-cap indices tumbled 0.8% and 1.6% respectively, the biggest fall since 6^th January. All the BSE sectoral indices ended in red with Energy and Oil & Gas indices leading the losses, down 2.3% and 1.8% respectively.

FIIs net sold stocks and index futures worth Rs 962 cr and 1534 cr respectively but net bought stock futures worth Rs 175 cr. DIIs were net buyers to the tune of Rs 292 cr.

Rupee depreciated 23 paise to end at 71.48/$.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 1.4% and 0.7% respectively. SGX Nifty is suggesting about 35 points higher start for our market.

Readers would recall that we had said that below 12088, 12000, where an upward sloping trendline adjoining recent bottoms on the daily chart is placed, would be the next important support.

Yesterday, Nifty, after touching a low of 12010, closed at 12035 and is set to open above 12050 today.

12010, the bottom made yesterday, which coincides with the upward sloping trendline adjoining recent bottoms on the daily chart, continues to be immediate support. Below 12010, 11890, where 20-week moving average is placed, would be the next important support.

12170, the top made on Wednesday, is the immediate hurdle on the hourly chart. Moreover, 20 and 34 DMAs are placed at 12190 and 12200 respectively, making 12170-1200 an important resistance zone, a crossover of which is required for a fresh upmove. If that happens, 12300 and 12430 would be next upside targets to eye.

SBI, ITC, HUL,Tech Mahindra and Powergrid will report their quarterly earnings today.

Budget Session of the Parliament starts today. Economic Survey will be tabled today while Union Budget will be presented tomorrow.

12170-12200 IS THE RESISTANCE ZONE; 12024 IMMEDIATE SUPPORT

12170-12200 IS THE RESISTANCE ZONE; 12024 IMMEDIATE SUPPORT

WORLD MARKETS

US indices ended little changed after the Federal Reserve kept interest rates steady and struck an upbeat tone on the health of the U.S. economy.

Fed held the overnight benchmark rate in a range between 1.5% and 1.75%, as expected. In a statement, it said the direction of rate policy is predicated on whether inflation can return to their 2% objective. The central bank also remarked the labor market remains “strong” while the economy is growing at a “moderate rate.”

The benchmark 10-year Treasury yield fell to 1.59%, lifting bond prices. The 2-year rate slipped to 1.42%.

Apple gained 2.1% to hit a record after its quarterly results easily beat expectations. McDonald’s, Dow Inc, ADP and General Electric also reported profits that beat estimates. AMD shares, however, dropped 6% after the semiconductor company issued weaker-than-forecast revenue guidance for the first quarter.

Brent crude gained 30 cents to settle at $59.81 per barrel while WTI crude slid 15 cents, or 0.3%, to settle at $53.33 per barrel.

European markets ended with gains of upto 0.7%. Morale among Italian manufacturers climbed from 99.3 in December to 99.9 in January while consumer confidence rose to 111.8 from 110.8 in December, surpassing expectations. French consumer confidence index rose from 102 in December to 104, having been expected to remain flat.

AT HOME

Benchmark indices rose six tenth of a percent, snapping two-day losing streak and recouping all the losses made yesterday. Sensex settled at 41198, up 231 points while Nifty added 73 points to finish at 12129. BSE mid-cap and small-cap indices rose 0.5% and 0.1% respectively. Except 0.5% lower Consumer Durables index, all the BSE sectoal indices ended in green with FMCG and Industrials indices leading the tally, up 1.4% and 1.2% respectively.

FIIs net sold stocks worth Rs 1014 cr but net bought index futures and stock futures worth Rs 440 cr and 891 cr respectively. DIIs were net buyers to the tune of Rs 1521 cr.

Rupee appreciated 7 paise to end at 71.25/$.

Bajaj Finance reported better-than-expected quarterly numbers with largely stable asset quality. NII rose 42% y-o-y to Rs 4537 cr and Net profit surged 52% to Rs 1614 cr. Gross NPA ratio remained unchanged q-o-q at 1.61% while net NPA ratio rose 5 bps to 0.70%. Slippages rose to Rs 936 cr from Rs 786 cr. Assets Under Management rose 35% y-o-y to Rs 1.45 lakh cr.

OUTLOOK

Shanghai continues to remain shut while Nikkei and Hang Seng are trading with cuts of 0.9% and 0.2% in today's trade. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 12000 continued to be important support while immediate hurdle on the hourly chart was placed around 12165.

Nifty, after touching a high of 12170, eased to close at 12130.

12170, the top made yesterday, also coincides with a trendline resistance adjoining recent tops on the daily chart. Moreover, 20 and 34 DMAs are placed at 12190 and 12200 respectively, making 12170-12200 important resistance zone, a crossover of which is required for a fresh upmove. If that happens, 12300 and 12430 would be next upside targets to eye.

12024, the low made Tuesday, is the immediate support, below which, 20-week moving average, placed around 11900, would be the next support.

Bajaj Auto, Tata Motors, Colgate, Dabur, IOC and Bharti Infratel will report their quarterly earnings today.

12000 CONTINUES TO BE IMMEDIATE SUPPORT; 12165 IMMEDIATE HURDLE

12000 CONTINUES TO BE IMMEDIATE SUPPORT; 12165  IMMEDIATE HURDLE

WORLD MARKETS

US indices rose 0.7%-1.4%, recovered from their biggest sell-off in more than three months amid coronavirus fears.

Pfizer and 3M posted disappointing quarterly earnings, sending their shares down 5.1% and 5.7%, respectively. Harley-Davidson’s earnings per share beat expectations, but a disappointing revenue figure made the stock fall 3%.

On the data front, U.S. consumer confidence rose more than expected in January as sentiment around the labor market improved.

After market hours, Apple posted earnings and iPhone sales that smashed expectations.

Brent crude futures rose 13 cents, or 0.2%, to $59.43 a barrel, while U.S. WTI crude gained 34 cents, or 0.6%, to settle at $53.48 per barrel.

Main European markets gained 0.9%-1.1%.

AT HOME

Benchmark indices fell half a percent, extending the losing streak to second straight day and closing at the lowest level in 3-weeks. Sensex settled at 40966, down 188 points while Nifty lost 63 points to finish at 12055. BSE mid-cap and small-cap indices fell 0.5% and 0.2% respectively. BSE Telecom index tumbled 4.1%, becoming top loser among the sectoral indices, followed by 2.6% lower Metal index. Oil & Gas , IT and Finance indices were the only gainers, rising 0.2% each.

FIIs net sold stocks, index futures and stock futures worth Rs 1358 cr, 541 cr and 1011 cr respectively. DIIs were net buyers to the tune of Rs 712 cr.

Rupee appreciated 11 paise to end at 71.32/$.

Maruti's Q3 numbers came in below estimates. Revenue rose 5% y-o-y to Rs 20707 cr, EBITDA rose 9% to Rs 2103 cr, margin rose to 10.2% from 9.82% and net profit rose 5% to Rs 1565 cr. Realisation fell 5.7% to Rs 4.7 lakh/unit q-o-q.

OUTLOOK

Markets in China remain shut while Hong Kong, after Lunar New Year holidays, has opened today and is trading with cut of nearly 3%. Nikkei is up 0.3% and SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had said that 12088, the low made last week, was the next support below which, 12000, where an upward sloping trendline adjoining recent bottoms on the daily chart is placed, would be the next important support.

Nifty broke 12088 support and fell all the way to 12024 before closing at 12055.

12000, where an upward sloping trendline adjoining recent bottoms on the daily chart is placed, continues to be the next important support. Below 12000, 20-week moving average, placed around 11900, would be the next support.

Immediate hurdle on the hourly chart is placed around 12165, with the stop-loss of which, trading shorts can be held on to.

Bajaj Finance and Bajaj Finserve will report their quarterly earnings today.

12000 BELOW 12088; 12272 IS IMMEDIATE HURDLE

12000 BELOW 12088; 12272 IS IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 1.6% each while Nasdaq plunged 1.9% after more cases of the coronavirus were confirmed over the weekend, intensifying worries over the virus’ impact on the world economy.

Chinese officials have now confirmed more than 2,800 cases of the new strain of coronavirus, with the death toll rising to 81 and 461 people in critical condition. The virus has now been detected in a host of other countries in Asia and beyond, including the U.S., France, Australia and Canada. In the U.S., a fifth case of coronavirus was confirmed over the weekend.

Traditional safe havens such as Treasurys and gold got a lift. The 10-year U.S. Treasury yield fell to 1.61% and hit its lowest level since October while gold futures climbed about 0.6%.

US crude fell 1.9%, or $1.05, to settle at $53.14 per barrel, for the fifth straight session of losses, and the lowest closing price since Oct. 15. Brent crude fell 2.5%, or $1.53, to $59.16.

European markets nosedived 2%-2.7%. Germany's Ifo business sentiment index fell from 96.3 in December to 95.9, missing the forecast of 97.0. The Ifo Institute also projected that Germany will likely grow by 0.2% in the first three months of 2020 as demand in the ailing industrial sector slowly returns.

AT HOME

It was a weak start to the week as Sensex and Nifty tumbled 1.1% each on rising concerns over the economic fallout from the Chinese coronavirus outbreak. Sesnex settled at 41155, down 458 points while Nifty lost 129 points to finish at 12119. BSE mid-cap index fell 0.4% while Small-cap index ended flat. Except 1.4% higher Healthcare index, all the BSE sectoal indices ended in red with Metal index leading the tally, down 3.2%, followed by 1.8% lower Telecom index.

FIIs net sold stocks, index futures and stock futures worth Rs 439 cr, 2269 cr and 482 cr respectively. DIIs were net buyers to the tune of Rs 11 cr.

Rupee depreciated 11 paise to end at 71.44/$.

HDFC was a strong showing as NII and net profit beat estimates and AUM showed the best growth in three quarters while the individual loan book surged over 16%. Gross NPAs though rose for the 5th straight quarter.

Dr Reddy soared 5.6% after reporting operationally strong quarter. Revenue rose 13.9% y-o-y to Rs 4384 cr, EBITDA surged 24.1% to Rs 1073 cr, margin improved 200 bps to 24.5%. Due to an impairment charge of Rs 1110 cr., the company reported a net loss of Rs 570 cr.

OUTLOOK

Markets in China and Hong Kong are closed on Tuesday for holidays. Nikkei is trading down 0.8% and SGX Nifty is suggesting about 25 points lower start for our market.

In yesterday's report we had said that 12150, the 67% retracement level of the recent 12088-12272 upmove, was the immediate support, upon breach of which, 12088, the low made last week, would be the next important support.

Nifty broke 12150 support and plunged all the way to 12107 before closing at 12119 and is set to open near 12100 today.

12088, the low made last week, is the next support to eye. Below 12088, 12000, where an upward sloping trendline adjoining recent bottoms on the daily chart is placed, would be the next important support.

12272, the top made on Friday, continues to be immediate hurdle.

Maruti will report its quarterly earnings today.

12150 IS THE IMMEDIATE SUPPORT; 12272 IMMEDIATE HURDLE

12150 IS THE IMMEDIATE SUPPORT; 12272 IMMEDIATE HURDLE

WORLD MARKETS

Dow fell 0.6% while S & P 500 and Nasdaq slipped 0.9% each on Friday after the second U.S. case of the deadly coronavirus was confirmed, stoking concerns over the sickness’ impact on the global economy.

Shares of United Airlines and American both fell more than 5%. Las Vegas Sands and Wynn Resorts also dropped more than 3% each. Treasury yields fell, pushing bank shares lower.

WTI futures fell 2.5%, or $1.40, to settle at $54.19 a barrel while Brent crude dropped 2.2% to settle at $60.69

Meanwhile, American Express and Intel shares climbed after fourth-quarter numbers topped estimates.

European markets gained 0.9%-1.4%. IHS Markit’s euro zone composite flash PMI stayed at 50.9 in January, missing the 51.2 estimate. Manufacturing PMI reading came in at 47.8, representing a marked improvement on December’s 46.3 and the January expectation of 46.8.  Optimism about the 2020 outlook increased, with the composite future output index advancing from 59.4 in December to 61.2, its highest since September 2018.

In the U.K., January data came in above forecast with the flash composite PMI hitting 52.4 against an expectation of 50.6, with both manufacturing and services exceeding expectations.

The Dow, S&P 500 and Nasdaq all posted their first weekly loss of 2020. The Dow and S&P 500 both fell at least 1% week to date while the Nasdaq slid 0.8%. For the week, WTI and Brent plunged 7.4% and 6.4% respectively.

AT HOME

Benchmark indices rose six tenth of a percent, extending the winning streak to second straight day. Sensex settled at 41613, up 226 points while Nifty added 68 points to finish at 12248. BSE mid-cap and small-cap indices rose 0.8% and 0.5% respectively. Except marginally lower Energy and Oil & Gas indices, all the BSE sectoral indices ended higher with Capital Goods and Consumer Durables indices leading the tally, up 1.5% and 1.3% respectively.

FIIs net bought stocks and stock futures worth Rs 659 cr and 26 cr respectively but net sold index futures worth Rs 581 cr. DIIs were net buyers to the tune of Rs 418 cr.

Rupee depreciated 6 paise to end at 71.32/$.

For the week, Sensex and Nifty lost 0.8% each, breaking two-week winning streak.

ICICI Bank's Q3 earnings met estimates. Gross NPA ratio improved 42 bps q-o-q to 5.95% while net NPA ratio fell 11 bps to 1.49%. Slippages rose to Rs 4363 cr from Rs 2482 cr.

OUTLOOK

Markets in Australia, China, Hong Kong, Singapore, South Korea, and Taiwan are closed for public holidays. However, Nikkei is down more than a percent and half and US futures are down nearly a percent on concerns over deadly and contagious coronavirus, which continues to spread. More than 2,000 people, mostly in China, have been affected by the new respiratory illness and 56 are reported to have died from the disease.

Meanwhile, SGX Nifty is suggesting about 80 points lower start for our market.

In Friday's report we had said that 12088, the low made on Wednesday, continued to be immediate support while 12265 continued to be immediate hurdle.

Nifty, on Friday, touched a high of 12272 before closing at 12248 and is set to open below 12200 today.

12150, the 67% retracement level of the recent 12088-12272 upmove, is the immediate support on the way down, upon breach of which, 12088, the low made last week, would be the next important support.

12272, the top made on Friday, is the immediate hurdle, upon crossover of which, 12430, the top made last week, would be the next target/hurdle.

HDFC and Dr Reddy's will report their quarterly earnings today.

12088 IS THE IMMEDIATE SUPPORT; 12265 IMMEDIATE HURDLE

12088 IS THE IMMEDIATE SUPPORT; 12265 IMMEDIATE HURDLE

WORLD MARKETS

Dow fell 0.1% while S & P 500 and Nasdaq rose 0.1% and 0.2% respectively, recovering most of their losses from earlier in the session, after the World Health Organization (WHO) declined for a second day to formally designate a new coronavirus as a global health emergency.

The WHO said it was a “bit too early to consider this event is a public health emergency of international concern.”

Meanwhile, NBCUniversal-parent Comcast and Travelers both reported better-than-expected quarterly figures.

Brent crude futures lost $1.20, or 1.9%, to trade at $62.00 per barrel while WTI futures fell $1.15, or 2%, to settle at $55.59 a barrel. 

European markets fell 0.6%-0.9%.The ECB held its interest rates steady. ECB President Christine Lagarde’s "risks were still tiled to the downside” on the economic outlook for the euro zone weighed on the sentiment.

AT HOME

Sensex and Nifty gained 0.6% each, snapping four day and three-day losing streak respectively. Sensex added 271 points to settle at 41386 while Nifty finished at 12179, up 73 points. BSE mid-cap and small-cap indices climbed 1% and 0.9% respectively. All the BSE sectoral indices ended in green with Capital Goods and Realty indices leading the tally, up 2.3% and 2% respectively.

FIIs net bought stocks worth Rs 1352 cr but net sold index futures and stock futures worth Rs 417 cr and 66 cr respectively. DIIs were net sellers to the tune of Rs 985 cr.

Rupee depreciated 7 paise to end at 71.26/$.

OUTLOOK

Today Shanghai is shut while Nikkei is little changed and Hang Seng is off 0.2%. SGX Nifty is suggesting about 25 points lower start for our market.

Readers would recall that we had turned our view on Nifty negative below 12278 and had given downside targets of 12150 and 12095.

After achieving 12095 target on Wednesday, Nifty yesterday rebounded to close at 12180 and is set to open near 12150 today.

12088, the low made on Wednesday, continues to be immediate support. If that gets violated 12000, where an upward sloping trendline adjoining recent bottoms on the daily chart is placed, would be the next support.

12265 continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 12430, the top made on Monday, would be the next major hurdle.

Ultratech Cement, JSW Steel and BoB will report their quarterly earnings today.

NIFTY ACHIEVES 12095 TARGET; 12265 IS IMMEDIATE HURDLE

NIFTY ACHIEVES 12095 TARGET; 12265 IS IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 ended little changed while Nasdaq rose 0.1% as IBM shares surged while worries over the spreading of the deadly coronavirus dampened sentiment.

IBM climbed 3% after quarterly numbers and 2020 earnings guidance  beat expectations.

Brent crude fell $1.39, or 2.2% to $63.20 per barrel while WTI fell 2.8%, or $1.64, to settle at $56.74 per barrel as a market surplus forecast by the International Energy Agency (IEA) and demand worries outweighed concern over disruptions to Libya’s crude output.

European markets fell 0.3%-0.6%. Germany's ZEW economic sentiment survey logged the highest “expectations” reading since July 2015, while the “current situation” gauge saw double-digit improvement.

AT HOME

After a positive start, benchmark indices saw a sustained downward move through the session to end lower by half a percent, with Sensex and Nifty extending the losing streak to third and fourth day respectively. Sensex settled at 41115, down 208 points while Nifty lost 63 points to finish at 12107. BSE mid-cap and small-cap indices fell 0.3% and 0.1% respectively. BSE Metal and Oil & Gas indices tumbled 1.6% and 1.5% respectively, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 1.1% each.

FIIs net sold stocks, index futures and stock futures worth Rs 176 cr, 927 cr and 1739 cr respectively. DIIs were net sellers to the tune of Rs 326 cr.

Rupee appreciated 1 paise to end at 71.19/$.

L & T reported weak performance for the third quarter but maintained FY20 revenue growth guidance at 12-15% and order inflow guidance at 10-12%.

Axis Bank's net profit missed estimate but loan growth, at 15.8% hit 7-quarter high and non watch list slippages, at Rs 2290 cr,  were best in 3 quarters. Net interest margin, at 3.57%, was a 10-quarter high.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.7%-1.1% as the death toll in China due to a mysterious pneumonia-like virus has risen to 17. SGX Nifty is suggesting a flattish start for our market.

Readers would recall that we had turned our view on Nifty negative below 12278 and have been advising holding on to short position with a trailing stop-loss.

After the benchmark achieved 34-DMA target of 12150, we had given next target of 12095 in yesterday's report.

Nifty yesterday touched a low of 12088 before closing at 12108, achieving this target and vindicating our view.

12088, the low made yesterday, which also coincides with the 67% retracement level of the recent 12930-12430 upmove, is the immediate support to eye upon breach of which 12000, where an upward sloping trendline adjoining recent bottoms on the daily chart is placed, would be the next support.

Immediate hurdle on the hourly chart has moved lower to 12265, with the stop-loss of which, trading shorts can be held on to.

NIFTY NEARLY ACHIEVES 34-DMA TARGET; 12300 IS IMMEDIATE HURDLE

NIFTY NEARLY ACHIEVES 34-DMA TARGET; 12300 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices fell 0.2%-0.5% after the Centers for Disease Control confirmed the first U.S. case of a mysterious coronavirus that has infected hundreds in China and killed 6 so far.

Shares of airline, casino and hotel companies tumbled amid fears that the coronavirus outbreak would dent international travel.

Sentiment also soured after Treasury Secretary Steven Mnuchin said that a phase two trade deal between China and the U.S. may not remove all existing tariffs. Also, Trump said he is “absolutely serious” about imposing tariffs on European cars if a trade deal with the region cannot be struck.

Brent crude fell 65 cents to $64.55 a barrel while WTI crude settled down 20 cents at $58.34.

In Europe, DAX was flat while FTSE and CAC fell 0.5% each. UBS shares fell by 4.5% after the Swiss lender missed its key 2019 profit targets and cut its midterm guidance.

AT HOME

Benchmark indices fell half a percent, extending the losing streak to second straight day and closing at the lowest level since 8th January. Sensex settled at 41323, down 205 points while Nifty lost 54 points to finish at 12169. BSE mid-cap index fell 0.2% while small-cap index ended flat. BSE Power and Realty indices tumbled 1.5% and 1.4% respectively, becoming top losers among the sectoral indices while Telecom index soared 2.1%, becoming top gainer, followed by 0.1% higher Teck and Energy indices.

FIIs net sold stocks, index futures and stock futures worth Rs 50 cr, 552 cr and 1018 cr respectively. DIIs were net sellers to the tune of Rs 308 cr.

Rupee depreciated 10 paise to end at 71.20/$.

ZEE Entertainment's Q3 numbers slip on all fronts. Revenue fell 5.5% y-o-y to Rs 2048 cr, EBITDA slipped 25% to Rs 565 cr, Margin fell 720 bps to 27.6% and net profit plunged 38% to Rs 349 cr.

OUTLOOK

Today morning, Nikkei is up 0.2%, Hang Seng is flat while Shanghai is off 1.3%. SGX Nifty is suggesting a marginally higher start for our market.

Readers would recall that we had turned our view on Nifty negative after 12278 was broken and had given target of 34-DMA placed around 12150 in yesterday's report.

Nifty touched a low of 12162 before closing at 12169, nearly achieving 12150 target and vindicating our view.

12162, the low made yesterday, which also coincides with the 34-DMA, continues to be immediate support, upon breach of which, 12095, the 67% retracement level of the recent 11930-12430 upmove, would be the next support to eye.

Immediate hurdle on the hourly chart has moved lower to 12300, with the stop-loss of which, trading shorts can be held on to.

L&T, Asian Paints and Axis Bank will report their quarterly earnings today.

STAY SHORT WITH THE STOP-LOSS OF 12325

STAY SHORT WITH THE STOP-LOSS OF 12325

WORLD MARKETS

US markets were shut yesterday for Martin Luther King Jr. Day.

The International Monetary Fund (IMF) said that the global economic outlook “remains sluggish” as it trimmed its growth forecasts for 2019 and 2020 to 2.9% and 3.3%, respectively.

Brent crude rose 37 cents, or 0.6%, to $65.22 a barrel while WTI added 24 cents, or 0.4%, to settle at $58.78.

In Europe, except 0.2% higher DAX, other markets ended with cuts of upto 0.6%.

AT HOME

After making a fresh record highs at the open, benchmark indices saw a sustained downward move through the session to end with deep cuts of a percent. Sensex plunged 416 points to settle at 41528 while Nifty finished at 12224, down 127 points. BSE mid-cap and small-cap indices fell 0.6% and 0.4% respectively, breaking 9-day winning streak. BSE Energy index and Bankex tumbled 2.7% and 1.6% respectively, becoming top losers among the sectoral indices while Telecom index climbed 1.9%, becoming top gainer, followed by 0.7% higher Really index.

FIIs net bought stocks and index futures worth Rs 6 cr and 134 cr respectively but net sold stock futures worth Rs 647 cr. DIIs were net sellers to the tune of Rs 1420 cr.

Rupee depreciated 2 paise to end at 71.10/$.

IMF cut India's FY20 GDP growth projection by 130 bps to 4.8%.

Kotak Mahindra Bank slipped after Net profit and NII came in below estimates and asset quality worsened.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.5%-1.5% with Hang Seng leading the losses while SGX Nifty is suggesting about 50 points lower start for our market.

In yesterday's report we had said that 12278, the low made last week, was the immediate support, with the stop-loss of which, trading longs can be held on to.

Nifty broke 12278 support and plunged all the way to 12216 before closing at 12224 and is set to open below 12200 today.

34-DMA, placed around 12150, is the next important support to eye. Below 12150, 12095, the 67% retracement level of the recent 11930-12430 upmove, would be the next support to eye.

12325 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

STAY LONG WITH THE STOP-LOSS OF 12278

STAY LONG WITH THE STOP-LOSS OF 12278

WORLD MARKETS

US indices gained 0.2%-0.4% on Friday to hit fresh record highs on the back of strong economic data from China and the US.

China's industrial production rose 6.9% on a y-o-y in December. The overall Chinese economy grew by 6.1% in 2019, matching expectations, but marking the slowest growth rate since 1990.

In the U.S., housing starts soared nearly 17% in December and reached a 13-year high.

Brent futures gained 23 cents to settle at $64.85 per barrel while  WTI futures rose 2 cents to $58.54.

European markets climbed 0.7%-1%. Euro zone inflation picked up slightly in December, with headline inflation coming in at 1.3% from 1.0% in November.

For the week, US indices soared 1.8%-2.3%. The S&P 500 notched its best one-week performance since the final week of August along with the Dow and Nasdaq. Brent fell 0.2%, while WTI lost 0.8%.

AT HOME

It was a day of consolidation as benchmark indices ended little changed after trading in a narrow range through the session. Sensex settled at 41945, up 12 points while Nifty lost 3 points to finish at 12352. BSE mid-cap and small-cap indices gained 0.5% and 0.4% respectively, extending the winning streak to ninth straight day. BSE Energy and Telecom indices climbed 1.8% and 1.5% respectively, becoming top gainers among the sectoral indices while Bankex was the top loser, down 0.8%, followed by 0.7% lower Metal and Finance indices.

FIIs net bought stocks and index futures worth Rs 264 cr and 130 cr respectively but net sold stock futures worth Rs 464 cr. DIIs were net sellers to the tune of Rs 500 cr.

Rupee depreciated 16 paise to end at 71.08/$.

For the week, Sensex and Nifty gained 0.8% each, extending the winning streak to second consecutive week.

HDFC Bank reported 12.7% y-o-y rise in NII at Rs 14173 cr while net profit surged 32.8% to Rs 7416 cr. Gross NPA ratio rose 4 bps q-o-q to 1.42% and net NPA ratio rose 6 bps to 0.48%. Slippages rose to Rs 5339 cr from Rs 3774 cr.

TCS reported a slower revenue growth in Q3 but net profit met street estimates and margins topped expectations.

Reliance Industries reported the highest ever quarterly profit for any Indian company in Q3. Refining business delivered while petchem disappointed. Gross Refining margins met expectations. Revenue rose 2.4% q-o-q to Rs 1.53 lk cr, EBITDA was up 1.1% at Rs 22386 cr, Margin fell 20 bps to 14.6% and net profit rose 3.4% to Rs 11640 cr. Reliance Jio reported a mixed bag as average revenue per user beat estimates but the pace of subscriber addition was slower than expectations.

OUTLOOK

Today morning, Asian markets are trading flat to modestly higher and SGX Nifty is suggesting about 20 points higher start for our market.

For past couple of days we have been mentioning that 12400, where an upward sloping trendline adjoining tops made in August 2018 and June 2019 is place, is the immediate resistance, a crossover of which is required for a fresh upmove.

Nifty, after making a high of 12389 on Thursday, ended at 12346 on Friday and is set to open modestly higher today.

12389, the top made last week, is the immediate hurdle, upon crossover of which, 12470, where upward sloping trendline adjoining tops made in November and December 2019 is placed, would be the next target/resistance to eye.

12278, the low made last week, is the immediate support, with the stop-loss of which, trading longs can be held on to.

NIFTY RETREATS AFTER NEARLY ACHIEVING 12400 TARGET; 12278 IS IMMEDIATE SUPPORT

NIFTY RETREATS AFTER NEARLY ACHIEVING 12400 TARGET; 12278 IS IMMEDIATE SUPPORT

WORLD MARKETS

US indices soared 0.8%-1.1% to hit fresh record highs on the back of strong economic data and earnings from Morgan Stanley.

Weekly jobless claims unexpectedly dropped by 10,000 to 204,000 — lower than the 216,000 expected. Retail sales climbed by 0.3% in December, matching expectations. The Philadelphia Federal Reserve business index also jumped to 17 in January from 2.4 in December.

Morgan Stanley jumped more than 6.5% after company's three main businesses — investment management, wealth management and trading — all produced more revenue than expected in the previous quarter.

Brent crude rose 95 cents to $64.95 a barrel while WTI crude surged 1.2%, or 71 cents, to settle at $58.52 per barrel.

In Europe, FTSE fell 0.4%, DAX was flat while CAC rose 0.1%.

AT HOME

Benchmark indices ended marginally higher after yo-yoing between positive and negative territory. Sesnex settled at 41932, up 59 points while Nifty added 12 points to finish at 12356. BSE mid-cap and small-cap indices climbed 0.8% each, extending the winning streak to eighth straight day. BSE Realty and Consumer Durables indices were the top gainers among the sectoral indices, rising 1% and 0.7% respectively while Metal index slipped 1.4%, becoming top loser, followed by 0.5% lower Oil & Gas index.

FIIs net sold stocks, index futures and stock futures worth Rs 395 cr, 586 cr and 216 cr respectively. DIIs were net sellers to the tune of Rs 185 cr.

Rupee depreciated 10 paise to end at 70.91/$.

In a setback for telecom companies, Supreme Court refused to review its order on Adjusted Gross Revenue dues worth nearly Rs 1.5 lakh cr. The deadline for payments ends in 7 days.

OUTLOOK

Today morning, Nikkei and Shanghai are up 0.4% and 0.2% respectively while Hang Seng is off 0.2%. SGX Nifty is suggesting about 15 points lower start for our market.

In yesterday's report we had reiterated the view that 12400, where an upward sloping trendline adjoining tops made in August 2018 and June 2019 is placed, continued to be the next target/resistance to eye. Above 12400, 12450, where an upward sloping trendline adjoining recent tops on daily chart is placed, would be the next target.

Nifty, after touching a high of 12389, slipped to end at 12356 and is set to open modestly lower today.

12400, where an upward sloping trendline adjoining tops made in August 2018 and June 2019 is placed, continues to be the immediate resistance, a crossover of which is required for a fresh upmove.

12278, the bottom made on Wednesday, would now act as immediate support, with the stop-loss of which, trading longs can be held on to.

Reliance Industries, TCS and HCL Tech will report their quarterly earnings today.