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.