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.