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.