NIFTY NEARS 34-DMA TARGET; 11900 IS IMMEDIATE SUPPORT

NIFTY NEARS 34-DMA TARGET; 11900 IS IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 climbed 1.7% and 1.1% respectively while Nasdaq rose 0.4%, extending the winning streak to third straight day and S & P 500 hitting a record closing high.

News reports suggested that a research team at Zhejiang University had found a drug to treat people infected by the new coronavirus. The World Health Organization, however, said in a statement: “There are no known effective therapeutics against this 2019-nCoV.” Meanwhile, a scientist leading the U.K.’s research into a coronavirus vaccine told Sky News on Wednesday that his team had made a “significant breakthrough” by cutting a portion of the normal development time to 14 days from two to three years.

ADP and Moody’s Analytics said U.S. private payrolls rose by 291,000 in January, the biggest monthly payrolls gain in nearly five years.

Brent futures rose $1.40, or 2.6%, to $55.36 a barrel while WTI gained $1.14, or 2.3%, to settle at $50.75 per barrel, breaking 5-day losing streak.

European markets rose 0.6%-1.5%. Eurozone final PMI rose to a five-month high of 51.3 in January from December’s 50.9. Germany's service sector grew at its strongest pace in five months to rise to 54.2 from 52.9 in December.

AT HOME

Bull march continued as benchmark indices climbed 0.9%, extending the winning streak to third straight day. Sensex settled at 41142, up 353 points while Nifty added 109 points to finish at 12089. BSE mid-cap and small-cap indices gained 1.2% and 0.6% respectively. Except 0.1% lower Consumer Discretionary Goods & Services index, all the BSE sectoral indices ended in green with Metal and Telecom indices leading the tally, up 2.5% and 2.3% respectively.

FIIs net bought stocks and stock futures worth Rs 249 cr and 482 cr respectively but net sold index futures worth Rs 320 cr. DIIs were net buyers to the tune of Rs 263 cr.

Rupee appreciated 6 paise to end at 71.18/$.

India's January Markit Services PMI rose to 55.5 from 53.3 in December. Composite PMI improved to 56.3 from 53.7.

Tata Motors climbed after unveiling a series of cars and commercial vehicles at the Auto Expo 2020.

Yes Bank gained on reports that the company has roped in veteran banker Anshu Jain to assist in raising funds.

ZEEL tumbled on reports that Corporate Affairs Ministry has ordered an inspection of financials of the company following allegations of corporate governance lapses and after some independent directors quit recently.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 2% and 1.3% respectively while Shanghai is flat. SGX Nifty is suggesting about 15 points lower start for our market.

In yesterday's report we had said that 12017, the top made on the budget day, continued to be immediate hurdle, upon crossover of which, 34-DMA, placed around  12160, would be the next target.

Nifty crossed 12017 hurdle and surged all the way to 12098 before closing at 12089.

34-DMA, placed around 12150, continues to upside target/resistance to eye. Above 12150, 12272, the top made on 24th January, would be the next target.

Immediate support on the hourly chart is placed around 11900, with the stop-loss of which, trading longs can be held on to.

RBI's Monetary Policy Committee is widely expected to keep interest rate unchanged when it announces its decision today. The stance of the policy is also likely to be maintained "Accomodative".

Eicher Motors, Hero MotoCorp, Sun Pharma, Lupin and Aurobindo Pharma will report their quarterly earnings today.