11740 CONTINUES TO BE IMMEDIATE SUPPORT; 12022 IMMEDIATE HURDLE

 

11740 CONTINUES TO BE IMMEDIATE SUPPORT; 12022 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.6% each while Nasdaq eased 0.1%, all snapping four-day winning streak, on the back of negative coronavirus treatment developments.

 

U.S. regulators paused Eli Lilly’s trial of a coronavirus antibody treatment due to safety concerns. That came after Johnson & Johnson’s coronavirus vaccine trial was paused after a participant had an unexplained illness.

 

Senate Majority Leader Mitch McConnell said the Senate will vote on a limited stimulus bill later this month, which will be “targeted relief for American workers, including new funding” for Paycheck Protection Program small business loans.

 

Meanwhile, earnings season kicked off with both JPMorgan Chase and Citigroup reporting better-than-expected results.

 

Brent crude futures rose 72 cents, or 1.7%, to $42.44 a barrel while WTI crude futures settled 77 cents, or 2%, higher at $40.20 per barrel.

 

Earlier, data from China showed that the country’s exports and imports of goods hit a record in yuan-denominated terms in September.

 

European markets fell 0.5%-1%. Germany’s ZEW survey of economic sentiment fell by more than expected in October.

 

The IMF revised its forecasts for the global economy slightly upward to -4.4% from -4.9% made in June,  after advanced economies performed above expectations in the second and third quarters. However, the Fund also warned that the recovery would likely be a long and uneven process.

 

AT HOME

 

It was a day of consolidation as benchmark indices ended little changed after a rangebound but choppy session. Sensex settled at 40625, up 31 points while Nifty added 3 points to finish at 11934. BSE mid-cap and small-cap indices fell 0.3% and 0.1% respectively, extending the losing streak to third and fifth day respectively. BSE Energy and IT indices climbed 1.5% each, becoming top gainers among the sectoral indices while Healthcare and Consumer Durables indices were the top losers, down 1.2% each.

 

FIIs net bought stocks worth Rs 832 cr but net sold index futures and stock futures worth Rs 59 cr and 931 cr respectively. DIIs were net sellers to the tune of Rs 1674 cr.

 

Rupee depreciated 8 paise to end at 73.35/$.

 

Wipro's July-September quarter dollar revenue and margin came in better-than-expectation. IT services dollar revenue rose 3.7% q-o-q to $1992 mn, constant currency revenue was up 2%, rupee revenue rose 1.2% to Rs 14768 cr, EBIT rose 1.9% to Rs 2835 cr and margin rose 20 bps to 19.2%. The company also announced Rs 9500 cr buyback at Rs 400 per share. The company guided for 1.5%-3.5% revenue growth for Q3.

 

The Supreme Court yesterday rescheduled the hearing of interest on interest case to Wednesday.

 

IMF pegged India's FY21 GDP contraction at 10.3%, up from 4.5% contraction projected in June and sharper than the 9.5% degrowth projected by the RBI.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-0.5% and SGX Nifty is suggesting around 60 points lower start for our market.

 

In yesterday's report we had said that 12022, the top made Monday, was the immediate hurdle and had advised trailing stop-loss in long positions to 11740.

 

Nifty, after touching a high of 11988, slipped to end at 11934 and is set to open below 11900 today.

 

12022, the top made Monday, continues to be immediate hurdle, upon crossover of which, 12246, the top made in February, would be the next target to eye.

 

11740 continues to be immediate support, with the stop-loss of which, long positions should be held on to.

 

Infosys will report its quarterly earnings today.