12246 ABOVE 12022; 11740 IS THE IMMEDIATE SUPPORT

 

12246 ABOVE 12022; 11740 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices climbed 0.9%-2.6%, with Nasdaq on the top, as Apple shares surged.

 

Apple soared 6.4% ahead of Tuesday's event, where the company is expected to launch its first ever 5G iPhone. 

 

Trump administration, over the weekend, called on Congress to pass a smaller $1.8 billion coronavirus relief bill as negotiations on a bigger package continue to run into roadblocks. However, House Speaker Nancy Pelosi said the proposition has insufficient offers on healthcare issues.

 

Brent crude fell $1.21, or 2.8%, to $41.64 a barrel while WTI fell 2.9%, or $1.17, to settle at $39.43 per barrel.

 

In Europe, except 0.2% lower FTSE, other markets gained 0.6%-0.7%. UK announced a three-tier system of restriction, closing pubs and bars in 'very high' tiers.

 

AT HOME

 

After rising nearly a percent at the open, benchmark indices gave away most of the gains through the session to end just marginally higher. Sensex settled at 40593, up 84 points while Nifty added 16 points to finish at 11930. BSE mid-cap and small-cap indices fell 0.5% and 0.4% respectively, extending their underperformance. BSE Metal index nosedived 3.7%, becoming top loser among the sectoral indices followed by 1.8% lower Telecom index. IT and Teck indices were the top gainers, up 1.5% and 1% respectively.

 

FIIs net bought stocks worth Rs 615 cr but net sold index futures and stock futures worth Rs 701 cr and 948 cr respectively. DIIs were net sellers to the tune of Rs 1029 cr.

 

Rupee depreciated 14 paise to end at 73.27/$.

 

Finance Minister Nirmala Sitharaman announced measures to boost demand and capital expenditure.

 

Measure announced to boost demand included interest free festival adavance of Rs 10,000 to all central government employees and LTC Cash Voucher Scheme, under which, government employees can opt to receive cash amounting to leave encashment and 3 times ticket fare, to buy items which attract GST of 12% or more.

 

For boosting Capex, the FM announced 50-year interest free loan of Rs 12,000 cr to states, which can be used for expenditure on roads, defence, infrastructure, water supply, urban development, defence infrastructure and domestically produced capital equipment.

 

September CPI rose to 7.34% from 6.69% in August. August IIP showed a contraction of 8% as against contraction of 10.4% in July.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are down 0.2% and 0.5% respectively while trading in Hong Kong markets is paused due to typhoon. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 12000 continued to be immediate upside target, upon crossover of which 12246, the top made in February, would be the next target to eye.

 

Nifty, after touching a high of 12022 in the initial trade, achieving 12000 target, from where it slipped to end at 11930.

 

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

 

Immediate support on the hourly chart has moved up to 11740, with the stop-loss of which, long positions can be held on to.