NIFTY REBOUNDS FROM 34-DMA SUPPORT; 11850 IS THE IMMEDIATE HURDLE

 

NIFTY REBOUNDS FROM 34-DMA SUPPORT; 11850 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices gained 0.5%-1.6% on the back of better-than-expected U.S. gross domestic product and jobless claim data.

 

US economy grew at a record 33.1% annualized rate in the third quarter, exceeding the 32% estimate. Weekly jobless claims stood at 751000, declining for a second straight week and touching its lowest level since March.

 

Apple fell more than 4% in extended trading after the company reported a 16% decline in iPhone sales and failed to offer any guidance for the quarter ahead. Amazon dipped 1.5% even after reporting blowout results with a big beat on the top line. Twitter dropped more than 14% after reporting user growth that fell short of expectations. On the other hand, Google parent Alphabet soared more than 7% after posting quarterly results that topped expectations.

 

Moderna said it is prepping for the global launch of its potential coronavirus vaccine.

 

Brent crude settled 3.8% lower at $37.65 per barrel while WTI crude futures fell 3.3% to settle at $36.17 per barrel.

 

In Europe, FTSE and CAC were little changed while DAX rose 0.3%.  ECB held interest rates steady and kept its broader monetary policy environment unchanged, but suggested that additional policy action could come as soon as December. Euro zone economic sentiment for October came in at 90.6, unchanged from the previous month but slightly exceeding expectations.

 

AT HOME

 

Benchmark indices ended lower by half a percent after a choppy expiry session, extending the losing streak to second straight day. Sensex settled at 39749, down 173 points while Nifty lost 59 points to finish at 11670. BSE mid-cap index ended flat while small-cap index fell 0.6%. BSE Capital Goods and Industrials indices fell 2.1% and 1.3% respectively, becoming top losers among the sectoral indices while Energy index was the top gainer, up 0.6%, followed by 0.2% higher IT and Teck indices.

 

FIIs net sold stocks and index futures worth Rs 421 cr and 1659 cr respectively but net bought stock futures worth Rs 1468 cr. DIIs were net sellers to the tune of Rs 253 cr.

 

Rupee depreciated 22 paise to close at 74.10/$.

For the October derivative series, Sensex and Nifty gained 8.7% and 8% respectively.

Output of eight core industries contracted 0.8% in September, much better than the revised contraction of 7.3% seen in August.

 

OUTLOOK

 

Today morning, Shanghai is little changed while Hang Seng and Nikkei are down 0.3% and 0.6% respectively. SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 11661, the bottom made on 15th October, continued to be immediate support, upon breach of which, 34-DMA, placed around 11590, would be the important support to eye.

 

Nifty opened below 11661 support and touched a low of 11606, from where it rebounded to end at 11670.

 

11590, where 34-DMA is placed, continues to be important immediate support to eye. If this level breaks, next meaningful support will come only at 11407, which is the 50% retracement level of the entire 10790-12025 upmove.

 

11850 is the immediate hurdle on the hourly chart, above which 11929, the top made on Wednesday, would be the next resistance.

 

Reliance Industries, UPL, IOC and Indusind Bank will report their quarterly earnings today.

11590 BELOW 11661; 11929 IS THE IMMEDIATE HURDLE

 

11590 BELOW 11661; 11929 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices nosedived 3.4%-3.7% on worries over sustained increase in coronavirus cases, with the Dow and S & P 500 suffering their worst fall since June 11 and extending the losing streak to fourth and third day respectively.

 

New Covid-19 cases, hospitalizations and deaths continue to surge across US and Europe and reports suggested that Germany and France are preparing new lockdown restrictions. Mainland China also reported its highest number of daily new cases for more than two months on Wednesday.

 

Earlier, U.S. President Trump on Tuesday acknowledged that there will be no coronavirus relief bill before election day.

 

Brent futures fell $2.12, or 5.2%, to $39.08 a barrel, while WTI crude settled 5.5%, or $2.18, lower at $37.39 per barrel, its lowest level in three weeks.

 

The safe-haven U.S. dollar rose 0.5%. Gold fell as much as 2% and silver nearly 6%.

 

European markets slipped 2.5%-4.2% with DAX leading the losses.

 

AT HOME

 

Sensex and Nifty tumbled 1.5% and 1.3% respectively, giving away more than they had gained in yesterday's rebound and closing at nearly two-week low. Sensex settled at 39922, down 600 points while Nifty lost 160 points to finish at 11729. BSE mid-cap and small-cap indices fell 0.9% and 0.8% respectively. Except 2.9% and 0.3% higher Telecom and Capital Goods indices respectively, all the BSE sectoral indices ended in red with Bankex and Finance indices leading the losses, down 2.3% each.

 

FIIs net sold stocks and index futures worth Rs 1131 cr and 1905 cr respectively but net bought stock futures worth Rs 1350 cr. DIIs were net buyers to the tune of Rs 1 cr.

 

Rupee depreciated 17 paise to end at 73.87/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.7%-1.2% and SGX Nifty is suggesting around 60 points lower start for our market.

 

In yesterday's report we had said that 11905 continued to be immediate hurdle while 11661, the bottom made on 15th October, continued to be the support to eye.

 

Nifty touched a high of 11929 in the initial trade but could not sustain there and plunged all the way to 11684 before closing at 11730. The benchmark is set to open below 11700 today.

 

11661, the bottom made on 15th October, continues to be immediate support to eye, upon breach of which, 34-DMA, placed around 11590, would be the important support to eye.

 

11929, the top made yesterday, would work as immediate hurdle upon crossover of which, 12025, the top made on 15^th October, would be the next resistance to eye.

 

Maruti and BPCL will report their quarterly earnings today.

 

11905 CONTINUES TO BE IMMEDIATE HURDLE; 11661 IS THE SUPPORT

 

11905 CONTINUES TO BE IMMEDIATE HURDLE; 11661 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.8% and 0.3% respectively while Nasdaq rose 0.6% as technology stocks rose while stocks dependent on the economy reopening declined due to rise in covid cases.

 

Microsoft reported better-than-expected earnings and revenue as sales from its cloud business grew sharply.

 

Brent crude rose 58 cents, or 1.4%, to $41.03 per barrel while U.S. oil gained $1.01, or 2.6%, to settle at $39.57 per barrel.

 

European markets fell 0.9%-2.1% with Spain leading the losses. Owing to rising covid cases, U.K. is set to extend its highest category alert to more cities and German Chancellor Angela Merkel has warned that Germany is on the verge of losing control of the virus.

 

AT HOME

 

Benchmark indices climbed a percent, recouping three fourth of the losses incurred yesterday. Sensex settled at 40522, up 376 points while Nifty added 121 points to finish at 11889. BSE mid-cap and small-cap indices gained 1.6% and 0.6% respectively. BSE Bankex surged 3.5%, becoming top gainer among the sectoral indices, followed by 2% higher Power and Capital Goods indices. IT and Teck indices were the top losers, down 1.5% and 1.2% respectively.

 

FIIs net bought stocks and stock futures worth Rs 3515 cr and 2442 cr respectively but net sold index futures worth Rs 1116 cr. DIIs were net sellers to the tune of Rs 1571 cr.

 

Rupee appreciated 14 paise to end at 73.70/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-0.6% and SGX Nifty is suggesting around 35 points lower start for our market.

 

In yesterday's report we had said that 11661, the bottom made on 15th October, was the next important support to eye while 11905 was the immediate hurdle on the hourly chart.

 

Nifty surged to touch a high of 11899 before closing at 11889 and is set to open near 11850 today.

 

11905 continues to be immediate hurdle, upon crossover of which, 12025, the top made on 15th October, would be the next resistance to eye.

 

11661, the bottom made on 15th October, continues to be the support to eye.

 

Axis Bank, L & T, Hero Motocorp, Titan and Dr Reddy will report their quarterly earnings today.

 

11661 IS THE NEXT SUPPORT; 11905 IMMEDIATE HURDLE

 

11661 IS THE NEXT SUPPORT; 11905 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices slipped 1.6%-2.3%, suffering their worst fall since September, on worries over surging Coronavirus cases, compounded with little hope of a stimulus package from Washington.

 

Friday and Saturday saw cases spike above 83,000, in the US. Data on Sunday also showed the country has reported a record average of 68,767 cases per day over the past seven days.

 

Brent crude dropped $1.31, or 3.1%, to settle at $40.46 a barrel while WTI fell $1.29, or 3.2%, to settle at $38.56 a barrel.

 

European markets fell 1.2%-3.7% with the DAX leading the losses. France reported a record daily rise in new infections on Sunday. Italy ordered bars to close early and shutting public gyms and Spain issued a nationwide curfew to stem a worsening outbreak.  Meanwhile, Technology stocks plunged after Germany’s SAP abandoned its medium-term profitability targets and warned that its business would take longer than expected to recover from the damage of the coronavirus pandemic.  Germany’s Ifo business climate index for October slipped lower on Monday for the first time in six months, indicating that the recovery for Europe’s largest economy could be losing momentum.

 

AT HOME

 

Benchmark indices tumbled a percent and third, starting the week on a weak note. Sensex settled at 40145, down 540 points while Nifty lost 162 points to finish at 11767. BSE mid-cap and small-cap indices fell 1.8% and 0.9% respectively. Except 0.1% higher FMCG index all the BSE sectoral indices ended in red with Energy, Metal and Auto indices leading the losses, down 3.5%, 3.4% and 3.3% respectively.

 

FIIs net sold stocks and index futures worth Rs 119 cr and 600 cr respectively but net bought stock futures worth Rs 713 cr. DIIs were net sellers to the tune of Rs 979 cr.

 

Rupee depreciated 23 paise to end at 73.85/$.

 

Auto stocks, especially those of two-wheeler companies, fell sharply on concerns of festive season failing to boost vehicle demand.

 

Kotak Mahindra Bank reported better-than-expected earnings along with improvement in asset quality. NII rose 17% y-o-y to Rs 3913 cr while Net profit rose 26.7% to Rs 2184 cr. Gross NPA ratio improved to 2.55% from 2.7% q-o-q while net NPA ratio improved to 0.6% from 0.87%. Slippages improved to Rs 264 cr from Rs 796 cr and provisions fell to Rs 369 cr from Rs 962 cr.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are trading with modest cuts while Shanghai is flat. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 12025 continued to be immediate hurdle while 11775, the low made last week, continued to be immediate support, below which 11661, the bottom made on 15th October, would be the important support to eye.

 

Nifty broke 11775 support and plunged all the way to 11711 before closing at 11767 and is set to open near 11800 today.

 

11661, the bottom made on 15th October, is the next important support to eye.

 

11905 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

Tata Motors and Bharti Airtel will report their quarterly earnings today.

 

ENGLISH VERSION OF MY ARTICLE IN TODAY'S SANDESH NEWSPAPER

 

After last week's correction, benchmark indices resumed their northward journey. Nifty gained 1.4% for the week to close at 11930, which is the highest weekly close since the week ended 20th February, 2020, making it an eight month high. Broader market outperformed, with Nifty mid-cap and small-cap indices rising 3.1% and 2.6% respectively. Except 2.6% lower Pharma index and 0.1% cut in IT index, all the sectoral indices of NSE closed higher for the week. Realty index was the best performer, up 9.3%, followed by 4.9% higher Metal index.

Coming back to Nifty, 12025, the top made last week, which roughly coincides with the 12018 top made this week, continues to be immediate hurdle to eye. A crossover of this hurdle would mark a breakout from an ascending triangle formation. The target of this pattern breakout will be around 12400. Before 12400, 12246, the top made in February 2020, would be the intermediate target. On the way down, 11775, the low made during the week, is the immediate support. If this support breaks, 11661, the bottom made last week, would be the crucial support to eye. Meanwhile, trading longs should be held on to with the stop-loss of 11775.

Banknifty (CMP: 24478): 25232, the top made in August, is the upside target as well as resistance to eye. 23900 is the immediate support on the hourly chart, upon breach of which, 22970, the bottom made in mid-October, would be the next important support to eye. Meanwhile, long positions can be held on to with the stop-loss of 23900.

NIIT LIMITED (CMP: 137.40): After making a top of 147.90 in mid-September, NIIT has been in a consolidation mode for more than a month.  After this consolidation, the stock has broken out from an ascending triangle formation on its daily chart. The stock can be bought at current rate for the target of 147.90. The stop-loss should be placed at 130.80.

ZYDUS WELLNESS (CMP: 1851.40) ZYDUS WELLNESS, on Friday, broke out of a downward sloping trendline resistance on its daily chart with good volumes. The stock should be bought at current rate for the target of 1950. The stop-loss should be placed at 1807.

BLUE DART (CMP: 3250): BLUE Dart broke out on its hourly chart on Friday with good volumes. The stock can be bought at current rate for the target of 3450. The stop-loss should be place at 3115.

ASAHI INDIA (CMP: 231.25): The stock, after a consolidation of two months, is on the verge of a breakout from a trendline resistance on its daily chart. The stock can be bought above Friday's high of 233.65 for the target of 250. The stop-loss should be placed at 222.

12025-11775 CONTINUES TO BE IMMEDIATE RANGE

 

12025-11775 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow fell 0.1% while S & P 500 and Nasdaq rose a third of a percent each, monitoring developments over the much awaited stimulus deal. 

 

President Donald Trump said that he does not want the aid deal to bail out Democratic states. Meanwhile, treasury Secretary Steven Mnuchin said "we’ve made lots of progress in lots of areas, but there’s still some significant areas that we’re working through.”

 

Intel shares fell 10.6% following the release of mixed quarterly numbers.

 

Brent crude fell 69 cents, or 1.6%, to settle at $41.77 a barrel. WTI crude shed 79 cents, or 1.9%, to settle at $39.85 per barrel.

 

European markets gained 0.8%-1.3%. The flash euro zone PMI composite PMI dropped to a four-month low in October to 49.4, versus 50.4 in September.

 

For the week, US indices fell 0.5%-1.1% with the Dow and S&P 500 snapping a three-week winning streak and the Nasdaq posted its first weekly loss in five weeks.

 

AT HOME

 

It was a day of consolidation as benchmark indices ended higher by three tenth of a percent after a rangebound session. Sensex settled at 40685, up 127 points while Nifty finished at 11930, up 34 points. BSE mid-cap and small-cap indices outperformed yet again, rising 0.6% and 0.7% respectively. BSE Auto and Consumer Discretionary Goods & Services indices rose 2.8% and 1.8% respectively, becoming top gainers among the sectoral indices while Realty index was the top loser, down 0.9%, followed by 0.3% lower Basic Material index.

 

FIIs net bought stocks and stock futures worth Rs 907 cr and 315 cr respectively but net sold index futures worth Rs 601 cr. DIIs were net sellers to the tune of Rs 892 cr.

Rupee depreciated 9 paise to end at 73.62/$.

 

For the week, Sensex and Nifty rose 1.8% and 1.4% respectively and closed at the highest level since the week ended 20th February, marking an eight month high.

 

Nestle, Tech Mahindra and JSW Steel reported quarterly results which beat market estimates. For Nestle, revenue growth stood at 10.2% while EBI. Tech Mahindra's dollar revenue grew 4.8% while constant currency revenue growth stood at 2.9%. EBITDA margin expanded 220 bps. JSW Steel posted revenue of Rs 19200 cr and EBIDTA/tonne of Rs 10141.

 

OUTLOOK

 

Hang Seng is shut today while Nikkei is little changed and Shanghai is off more than a percent. SGX Nifty is suggesting a flattish start for our market.

 

In Friday's report we had said that 11775, the low made Wednesday, continued to be immediate support to eye while 12025, the top made the previous week, continued to be immediate hurdle.

 

Nifty ended marginally higher at 11930.

 

12025, the top made on 15th October, continues to be immediate hurdle, upon crossover of which, 12246, the top made in February, would be the next target to eye.

 

11775, the low made last week, continues to be immediate support, below which 11661, the bottom made on 15th October, would be the important support to eye.

 Kotak Mahindra Bank will report its quarterly results today.

11775 CONTINUES TO BE IMMEDIATE SUPPORT; 12025 IMMEDIATE HURDLE

 

11775 CONTINUES TO BE IMMEDIATE SUPPORT; 12025 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 rose 0.5% each while Nasdaq inched up 0.2% following better-than-expected jobs data and after House Speaker Nancy Pelosi signaled progress in fiscal stimulus negotiations.

 

Pelosi said a deal on new coronavirus stimulus was “just about there” though she warned that passing it into law will take time as she and the Trump administration attempt to iron out remaining issues.

 

Weekly jobless claims fell to 787,000 for the week ending Oct. 17, marking the first time since March that claims come in below 800,000.

 

The U.S. Food and Drug Administration approved Gilead Sciences’ antiviral drug remdesivir for coronavirus treatment.

 

Brent crude futures rose 91 cents, or 2.2%, to $42.64 per barrel. WTI futures settled 63 cents, or 1.4%, higher at $40.64 per barrel.

 

In Europe, except 0.2% higher FTSE, other market ended modestly lower. Germany's GfK consumer confidence index for November came in at -3.1 points, down from 1.7 points in October. Flash euro zone consumer confidence fell 1.6 points in October, to -15.5.

 

Intel plunged more than 9% in after-hours trading following the release of mixed quarterly numbers.

 

AT HOME

 

Benchmark indices ended lower by four tenth of a percent each after a rangebound but choppy session, snapping four-day winning streak. Sensex settled at 40558, down 148 points while Nifty lost 41 points to finish at 11896. BSE mid-cap and small-cap indices however gained 0.5% and 0.8% respectively, extending the winning streak to fifth straight day. BSE Telecom and Power indices climbed 2.5% and 2% respectively, becoming top gainers among the sectoral indices while IT index and Bankex were the top losers, down 0.7% and 0.6% respectively.

 

FIIs net bought stocks worth Rs 1118 cr but net sold index futures and stock futures worth Rs 319 cr and 30 cr respectively. DIIs were net sellers to the tune of Rs 2020 cr.

 

Rupee appreciated 5 paise to end at 73.53/$.

 

Asian Paints Q2 numbers beat estimates on all fronts. Revenue rose 5.9% to Rs 5350 cr, EBITDA surged 32.5% to Rs 1265 cr, margin expanded 470 bps to 23.6% and net profit rose 1.2% to Rs 852 cr. Decorative business volume saw double digit growth.

 

Bajaj Auto's Q2 revenue and profit missed estimate while operational performance beat estimates. Revenue fell 7.2% y-o-y to Rs 7156 cr, EBITDA fell 0.9% to Rs 1266 cr, margin rose 110 bps to 17.7% and net profit fell 18.8% to Rs 1138 cr.

 

OUTLOOK

 

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting 15-20 points lower start for our market.

 

In yesterday's report we had said that 11775, the low made Wednesday, was the immediate support while 12025 was the upside hurdle.

 

Nifty ended lower at 11896 after a choppy session.

 

11775, the low made Wednesday, which also coincided with the 67% retracement level of the recent 11661-12018 upmove, continues to be immediate support to eye. If 11775 breaks, 11661, the low made last week, would be the next important support.

 

12025, the top made last week, continues to be immediate hurdle, upon crossover of which, 12246, the top made in February, would be the next target to eye.

 

Nestle, Tech Mahindra and JSW Steel will report their quarterly earnings today.

NIFTY RETREATS FROM 12025 HURDLE; 11775 IS THE IMMEDIATE SUPPORT

 

NIFTY RETREATS FROM 12025 HURDLE; 11775 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.2%-0.4%, awaiting for a breakthrough from coronavirus stimulus negotiations.

 

Tesla rose 3% in after-hours trading as the company posted its fifth straight quarter of profits, reporting per-share earnings of 76 cents versus the consensus estimate of 57 cents.

 

Brent crude futures fell $1.51 or 3.5% to $41.64 a barrel, while WTI crude futures settled 4%, or $1.67, lower at $40.03 after U.S. inventory figures showed demand weakening for refined products.

 

European markets slipped 1.4%-2%. Sterling jumped 1.6% against the U.S. dollar after the EU’s top negotiator Michel Barnier suggested that a trade deal with the U.K. is within reach.

 

US futures are down around half a percent as U.S. officials said Iran is taking steps to interfere in the U.S. presidential election, and Russia has obtained American voter information.

 

AT HOME

 

After rising a percent in the morning, benchmark indices nosedived 2% from the top and again climbed a percent and third from the bottom to finally end higher by nearly a third of a percent. Sensex settled at 40707, up 162 points while Nifty added 40 points to finish at 11937. BSE mid-cap index rose 0.2% while small-cap index ended flat.  BSE Realty and Telecom indices climbed 4.4% and 2.5% respectively, becoming top gainers among the sectoral indices while Energy and FMCG indices were the top losers, down 1% and 0.9% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2108 cr, 151 cr and 137 cr respectively. DIIs were net sellers to the tune of Rs 1634 cr.

 

Rupee depreciated 12 paise to end at 73.58/$.

 

Ultratech Cement posted strong set of numbers with volume growth at 19%. Revenue rose 7.6% y-o-y to Rs 10354 cr, EBITDA climbed 30% to Rs 2695 cr, margin improved 480 bps to 26% and net profit surged 113% to Rs 1235 cr.

 

Bajaj Finance posted better-than-expected NII but net profit missed estimate. NII rose 4% y-o-y to Rs 4165 cr while Net profit fell 36% to Rs 965 cr. Gross NPA ratio improved to 1.03% from 1.4% q-o-q and net NPA ratio fell to 0.37% from 0.50%.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.6%-0.8% and SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 12025, the top made last week, was the next target/resistance to eye and that 11820-11790, the gap created by Monday's gap-up opening, was the support zone.

 

Nifty, after touching a high of 12018, plunged to 11775 and finally closed at 11937.

 

11775, the low made yesterday, also coincided with the 67% retracement level of the recent 11661-12018 upmove and hence is the immediate support to eye. If 11775 breaks, 11661, the low made last week, would be the important support to eye.

 

12025 is the upside hurdle, upon crossover of which, 12246, the top made in February, would be the next target to eye.

 

Ambuja Cements, Asian Paints, and Bajaj Auto will report their quarterly results today.