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.