NIFTY NEARS 12017 HURDLE; 11783-11750 IS THE IMMEDIATE SUPPORT ZONE

NIFTY NEARS 12017 HURDLE; 11783-11750 IS THE IMMEDIATE SUPPORT ZONE

WORLD MARKETS

US indices soared 1.4%-2.1%, building on solid gains from the previous session and recouping all the losses suffered on Friday due to worries over the coronavirus outbreak. Nasdaq hit a record, helped by 13% surge in Tesla.

Media reports suggested that China’s central bank could cut its key lending rate as well as banks’ reserve requirement ratios (RRRs) in the coming weeks to support economic growth. The report came after the People’s Bank of China unveiled liquidity injection measures to the tune of more than 1 trillion yuan on Monday. The PBOC also injected another 400 billion yuan in liquidity. The Shanghai Composite closed 1.3% higher yesterday after a massive slump on Monday.

Brent crude lost 44 cents to trade at $54.01 per barrel, while WTI shed 1% to settle at $49.61 per barrel.

European markets rose 1.6%-1.8%

AT HOME

Benchmark indices soared 2.3% each, notching highest single day gain in 4-1/2 months and recouping all the losses made on the budget day. Sesnex settled at 40789, up 917 points while Nifty added 271 points to finish at 11979. BSE mid-cap and small-cap indices climbed 1.4% and 1.3% respectively. All the BSE sectoral indices ended in green with Consumer Durables and Realty indices leading the tally, up 3.5% and 3.2% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 366 cr, 680 cr and 1677 cr respectively. DIIs were net buyers to the tune of Rs 602 cr.

Rupee appreciated 7 paise to end at 71.25/$.

Bharti Airtel reported a strong set of numbers for Q3, despite a loss of around Rs 1100 cr. Margin beat estimate and Indian arm's average revenue per user grew. Total revenue rose 3.9% to Rs 21947 cr, EBITDA was up 4.6% at Rs 9350 cr, margin improved 30 bps to 42.6%.

Titan reported largely in-line numbers. Revenue rose 9.4% y-o-y to Rs 6206 cr, EBITDA surged 25.9% to Rs 735 cr, margin improved 155 bps to 11.85% and profit rose 12.9% to Rs 470 cr.

Adani Ports' topline and bottomline beat estimates but operational performance was a miss. Revenue rose 2.8% to Rs 3336 cr, EBITDA fell 23% to Rs 1707 cr, margins contracted 1980 bps to 58.8% and net profit fell 4% to Rs 1352 cr.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.9% and SGX Nifty is suggesting about 15 points lower start for our market.

In yesterday's report we had said that 11550, the 50% retracement level of the entire 10670-12430 upmove, continued to be next support while  12017, the top made on the budget day, continued to be immediate hurdle.

Nifty soared 271 points to close at 11979 and is set to open near 11950 today.

12017, the top made on the budget day, continues to be immediate hurdle, upon crossover of which, 34-DMA, placed around  12160, would be the next target.

11783-11750, the gap created by yesterday's gap up opening, would now act as immediate support. Below 11750, 11614, the bottom made on Monday, would be the crucial support to eye.

HPCL and Cipla will report their quarterly earnings today.