12246 ABVOE 12025; 11725 IS THE IMMEDIATE SUPPORT

 

12246 ABVOE 12025; 11725 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices climbed 1.3%-3.8%, with Nasdaq on the top, hoping that the winner of the U.S. presidential election would soon be determined.

 

Latest tally stands at 264 for Biden Vs 214 for Trump after the former is projected to win Wiconsin and Michigan. However, Trump side said it would seek a recount in Wisconsin, while earlier announcing that it was suing to halt ballot counting in Michigan and Pennsylvania. Also, several states could take until later this week to complete official tallies, which would delay a call in the presidential race.

 

Technology stocks soared as hopes for a blue wave in Congress dwindled, which markets believes rules out any substantial activity on taxes, as well as limiting any actions to control the major tech firms. 

 

WTI settled 4%, or $1.49, higher at $39.15 per barrel while Brent crude was up by 92 cents, or 2.3%, at $40.63 a barrel.

 

European markets rose 1.7%-2.4%. Final euro zone PMI for October came in at 50.0, down from 50.4 in September.

 

AT HOME

 

Benchmark indices ended higher by eight tenth of a percent after a choppy session owing to unfolding US election results, extending the winning streak to third straight day. Sensex added 355 points to settle at 40616 while Nifty finished at 11908, up 95 points. BSE mid-cap and small-cap indices rose 0.4% and 0.3% respectively. BSE Energy and IT indices were the top gainers among the sectoral indices, rising 2.7% and 1.8% respectively while Realty index was the top loser, down 1.9%, followed by 0.7% lower Utilities and Telecom indices.

 

FIIs net bought stocks and stock futures worth Rs 146 cr and 764 cr respectively but net sold index futures worth Rs 290 cr. DIIs were net sellers to the tune of 8 cr.

 

Rupee depreciated 33 paise to close at 74.74/$.

 

India IHS Markit October Services PMI jumped to 54.1 from 49.8 in September.

 

SBI reported better-than-expected numbers. NII rose 14.6% y-o-y to Rs 28182 cr and Net profit surged 52% to Rs 4574 cr. Gross NPA ratio improved 10 bps to 5.3% while net NPA ratio fell 30 bps to 1.6%. Net interest margin improved to 3.34% from 3% q-o-q. Fresh slippages stood at Rs 2756 cr Vs Rs 3637 cr.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.8%-2% and SGX Nifty is suggesting around 150 points higher start for our market.

 

Readers would recall that after the crossover of 11770 hurdle, we have been working with upside target of 11942 for Nifty.

 

Yesterday, Nifty touched a high of 11930 before closing at 11908 and is set to open above 12000 today.

 

12025, the top made last month, is the next upside target to eye. Above 12025, 12246, the top made in February this year, would be the next target.

 

Immediate support on the hourly chart is placed at 11725, with the stop-loss of which, trading longs should be held on to.