12272 NEXT UPSIDE TARGET; 12040 IS THE IMMEDIATE SUPPORT

12272 NEXT UPSIDE TARGET; 12040 IS THE IMMEDIATE SUPPORT

WORLD MARKETS

US indices rose 0.4%-0.9%, with the S & P 500 and Nasdaq hitting record highs as tech shares outperformed.

China’s National Health Commission yesterday reported an additional 1,749 cases of the coronavirus nationwide which is the lowest number of newly confirmed cases since late January.

US producer price index (PPI) rose by 0.5% in January, marking its biggest one-month increase since October 2018. Minutes of the latest Fed meeting showed central bank officials think rates will remain at current levels for the time being.  The minutes also reflected the coronavirus was being monitored by the Fed.

Brent crude climbed $1.58, or 2.7%, to $59.33 per barrel, while WTI gained $1.24, or 2.38%, to settle at $53.29 per barrel.

European markets climbed 0.8%-1%. U.K. inflation unexpectedly hit a six-month high in January, with consumer prices rising at an annual rate of 1.8% versus 1.3% in December.

AT HOME

Bulls made a spectacular come back as benchmark indices soared 1.1% each, breaking 4-day losing streak. Sensex settled at 41323, up 428 points while Nifty added 133 points to finish at 12125. NSE Mid-cap and Small-cap indices soared 1.5% and 1.3% respectively, breaking 5-day losing streak. All the BSE sectoral indices ended in green with Energy and Healthcare indices leading the tally, up 2.4% and 2.1% respectively.

FIIs net sold stocks worth Rs 191 cr but net bought index futures and stock futures worth Rs 994 cr and 768 cr respectively. DIIs were net buyers to the tune of Rs 590 cr.

OUTLOOK

Today morning, Nikkei is up nearly a percent and half while Shanghai and Hang seng are little changed. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 12115 was the immediate hurdle on the hourly chart, a crossover of which is required for a fresh upmove.

Nifty crossed 12115 hurdle and went all the way to 12135 before closing at 12125.

12247, the top made last week, is the next upside target/resistance to eye.

12042-12030, the gap created by yesterday's gap-up opening, would now act as the immediate support zone.