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.