NIFTY ACHIEVES 13700 TARGET; 14300 IS IMMEDIATE HURDLE

 

NIFTY ACHIEVES 13700 TARGET; 14300 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 gained 1% each while Nasdaq rose half a percent, rebounding from worst sell-off in 3 months in Wednesday's session on concerns over heightened speculative trading.

 

Several e-brokers took steps to curb the deliberate buying of heavily shorted names such as GameStop. Concerns are that if GameStop continues to rise, it may force bigger losses at hedge funds, which in turn could cause ripples in the market as these funds are forced to sell other securities to raise cash.

 

Data showed that the U.S. economy contracted 3.5% in 2020, its sharpest pace since World War Two in 2020. Weekly jobless claims fell by 67000 to 847,000.

 

Biotech firm Novavax said that its vaccine was more than 89% effective in protecting against Covid-19.

 

Visa, Mondelez, Western Digital and Skyworks Solutions all rose in extended trading after reporting better-than-expected profits and sales for their quarterly results.

 

Brent crude for March delivery fell 27 cents, or 0.5%, to $55.54 per barrel while WTI crude settled 51 cents, or 1%, lower at $52.34 per barrel.

 

Dollar index fell 0.2% to 90.45. Spot gold fell 0.2% to $1841.40 an ounce.

 

In Europe, except 0.6% lower FTSE, other markets rose 0.3%-1.2%.

 

AT HOME

 

After plunging 1.8%, benchmark indices recouped nearly a third of the losses in late noon trade to end lower by 1.1%, extending the losing streak to fifth consecutive day and closing at the lowest level in more than a month. Sesnex settled at 46874, down 535 points while Nifty lost 150 points to finish at 13817. Nifty mid-cap and small-cap indices fell 0.6% and 0.7% respectively. BSE Realty and IT indices slipped 2.1% and 1.9% respectively, becoming top losers among the sectoral indices while Oil & Gas and Telecom indices were the top gainers, up 0.8% and 0.4% respectively.

 

FIIs net sold stocks and index futures worth Rs 3713 cr and 1389 cr respectively but net bought stock futures worth Rs 920 cr. DIIs were net buyers to the tune of Rs 1737 cr.

 

Rupee depreciated 12 paise to end at 75.04/$.

 

OUTLOOK

 

Today morning Asian markets are trading with gains of 0.2%-0.7% and SGX Nifty is suggesting around 125 points higher start for our market.

 

At the risk of repeating, we had turned our view on Nifty negative after 14490 support was breached and have been advising holding on to short positions with a trailing stop-loss.

 

In yesterday's report we had said that 13700-13800 was the next support zone to eye.

 

Nifty touched a low of 13713 before closing at 13821, nearly achieving 13700 target and vindicating our view. The benchmark is set to open near 13950 today.

 

13700 continues to be important immediate support, a breach of which would be required to initiate fresh bearish view.

 

Immediate resistance on the hourly chart has moved to 14300, a crossover of which is required to turn the near term view positive.

 

Meanwhile, positional shorts can be held on to with the stop-loss of 14300.

 

Tata Motors, Cipla, Dr Reddy, Indusind Bank, IOC, Sun Pharma, Tech Mahindra and UPL will report their quarterly earnings today.

13700-13800 IS THE NEXT SUPPORT ZONE; 14450 IMMEDIATE HURDLE

 

13700-13800 IS THE NEXT SUPPORT ZONE; 14450 IMMEDIATE HURDLE

 

WORLD MARKETS

 

S & P 500 and Nasdaq plunged 2.6% each while Dow fell 2% amid caution about the eventual size of and delays to President Joe Biden’s $1.9 trillion fiscal stimulus plan. The speculative buying frenzy in heavily shorted stocks also kept markets on edge. S&P 500 and the Dow posted their worst day since October and S&P 500 wiped out its 2021 gains.

 

The U.S. Federal Reserve left its benchmark interest rate anchored near zero and said it will keep buying at least $120 billion of bonds a month. In his post-meeting news conference, Fed Chair Powell said: “The economy is a long way from our monetary policy and inflation goals, and it’s likely to take some time for substantial further progress to be achieved.”

 

Apple fell 3% despite reporting its largest quarter by revenue of all time at $111.4 billion. Tesla dropped more than 3% in extended trading after posting worse-than-expected earnings.

 

Brent crude gained 34 cents to $56.25 a barrel while WTI crude settled 24 cents, or 0.5%, higher at $52.85 per barrel.

 

Dollar index rose 0.5% to 90.61. Spot gold fell 0.4% to $1,844.61 per ounce.

 

European markets fell 1.2%-1.8%

 

AT HOME

 

Benchmark indices nosedived 1.9% each, suffering biggest cut after 21st December 2020 and extending the losing streak to fourth straight day. Sensex settled at 47410, down 937 points while Nifty lost 271 points to finish at 13967. Nifty mid-cap index fell 1.6%. However, small-cap index managed to gain 0.2%. Except 0.3% higher FMCG index, all the BSE sectoral indices ended in red, with Bankex and Finance indices leading the losses, down 2.9% and 2.7% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1688 cr, 1328 cr and 183 cr respectively. DIIs were net sellers to the tune of Rs 3 cr.

 

Rupee appreciated 1 paise to end at 72.92/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-1.1% and SGX Nifty is suggesting around 80 points lower start for our market.

 

Readers would recall that we had turned our view on Nifty negative after 14490 support was breached and have been advising holding on to short positions with a trailing stop-loss.

 

After the benchmark achieved 14222 target on Monday, in yesterday's report we had said that 34-DMA, placed around 14050, was the next important support to eye.

 

Nifty plunged all the way to 13929 before closing at 13967 and is set to open near 13900 today.

 

13700-13800 is the next support zone to eye.

 

Immediate hurdle on the hourly chart has moved lower to 14450, with the stop-loss of which, trading shorts can be held on to.

 

NIFTY ACHIEVES 14222 TARGET; STAY SHORT WITH THE STOP-LOSS OF 14525

 

NIFTY ACHIEVES 14222 TARGET; STAY SHORT WITH THE STOP-LOSS OF 14525

 

WORLD MARKETS

 

US indices ended marginally lower yesterday, digesting a batch of corporate earnings and ahead of policy announcement from the Federal Reserve on Wednesday. Nasdaq snapped 5-session winning streak.

 

American Express fell 4.1% after posting 15% drop in quarterly profits and Verizon lost 3.2% after prepaid phone subscriber number missed estimates. On the flip side, 3M and Jhonson & Jhonson rose 3.3% and 2.7% respectively.

 

U.S. consumer confidence rose moderately in January amid lingering concerns about the COVID-19 pandemic. Data from S&P CoreLogic Case-Shiller showed home prices rose 9.5% y-o-y in November, the strongest annual pace in more than six years.

 

Brent crude fell 11 cents, or 0.2%, tot $55.77, while U.S. crude fell 30 cents, or 0.6%, to $52.47.

 

Dollar Index fell 0.2% to 90.173. Spot gold fell 0.2% to $1,851.26 per ounce

 

European markets rose 0.2%-1.7% with DAX on the top.

 

AT HOME

 

After opening with gains of nearly eight tenth of a percent, Sensex and Nifty nosedived more a percent and half to end with cuts of 1.1% and 0.9% respectively, extending the losing streak to third straight day. Sensex settled at 48347, down 530 points while Nifty lost 133 points to finish at 14238. Nifty mid-cap and small-cap indices too fell nearly a percent. BSE Energy index plunged 4.4%, becoming top loser among the sectoral indices, followed by 2.2% lower Oil & Gas index. Healthcare and Metal indices were the top gainers, up 0.9% and 0.2% respectively.

 

FIIs net sold stocks worth Rs 765 cr but net bought index futures and stock futures worth Rs 1861 cr and 672 cr respectively. DIIs were net sellers to the tune of Rs 388 cr.

 

Rupee appreciated 4 paise to end at 72.93/$.

 

OUTLOOK

 

IMF raised its global economic growth forecast for this year to 5.5%, up by 0.3% from October’s forecasts.

 

Today morning, Nikkei and Hang Seng are up 0.3% each while Shanghai is off 0.1%. SGX Nifty is trading around 14160, suggesting around 90 points lower start when compared to Monday's close of Nifty futures.

 

In Monday's report we had said that 20-DMA, placed around 14320, was the immediate support, upon breach of which, 14222, the bottom made last week, would be the next important level to eye.

 

Nifty broke 14320 support and plunged all the way to 14218 before closing at 14251, achieving 14222 target and vindicating our view. The benchmark is set to open below 14200 today.

 

34-DMA, placed around 14050, is the next important support to eye.

 

Immediate hurdle on the hourly chart is placed around 14525, with the stop-loss of which, trading shorts can be held on to.

 

HUL and Axis Bank will report their quarterly earnings today.

 

14620 IS THE IMMEDIATE HURDLE; 14320 IMMEDIATE SUPPORT

 

14620 IS THE IMMEDIATE HURDLE; 14320 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

On Friday, Dow and S & P 500 fell 0.6% and 0.3% respectively while Nasdaq inched up 0.1% on uncertainty over Biden's $1.9 trillion stimulus plan.

 

Moderate Republican senators critiqued Biden’s plan, while another Democrat lawmaker said he would oppose another coronavirus relief check to Americans. Meanwhile, Biden warned on Thursday that the U.S. would likely top 500,000 Covid-19 deaths in February.

 

IBM nosedived 10% after fourth-quarter sales missed estimates. Apple rose 1.6%, extending Thursday's upmove.

 

January PMI data from Markit and figures for existing home sales in December both beat expectations.

 

A Senate committee overwhelmingly supported former Fed Chair Janet Yellen as Biden’s Treasury secretary. If confirmed, she would be the first woman to lead the department.

 

Brent crude futures declined 60 cents, or 1.1%, to $55.50 a barrel while WTI crude futures settled 86 cents, or 1.6%, lower at $52.27 per barrel. U.S. crude inventories surprisingly rose by 4.4 million barrels in the most recent week, versus expectations for a draw of 1.2 million barrels.

 

Dollar index rose 0.1% to 90.209.  Spot gold fell 1% to $1,851.50 per ounce. 10-year Treasury yield fell to 1.086%, while that on 30-year note dipped to 1.847%.

 

Main European markets fell 0.2%-0.6%. Italy and Spain slipped 1.5% and 1.1% respectively. Eurozone flash composite PMI dropped to 47.5 January from 49.1 in December, on the back of stricter coronavirus-related lockdowns. UK's composite PMI fell to 40.6 in January from 50.4 in December and December retail sales came in at +0.3% month on month, lower than the +1.2% expected.

 

AT HOME

 

Benchmark indices nosedived 1.5% each, suffering the worst fall in a month and extending the losing streak to second straight day. Sensex settled at 48878, down 746 points while Nifty lost 218 points to finish at 14371. Nifty mid-cap and small-cap indices fell 1.2% and 0.6% respectively.  BSE Metal index and Bankex tumbled 3.8% and 3% respectively, becoming top losers among the sectoral indices while Auto index climbed 1.5%, becoming top gainer, followed by marginally higher IT and Consumer Discretionary Goods & Services indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 636 cr, 1471 cr and 467 cr respectively. DIIs were net sellers to the tune of Rs 1290 cr.

 

Rupee appreciated 2 paise to end at 72.97/$.

 

Bajaj Auto surged as various brokerages upgraded stock's target price post third quarter results, citing better outlook for exports, increased traction for premium motorcycles and attractive valuations.

 

For the week, Sensex and Nifty fell 0.4% and 0.3% respectively, with Sensex snapping 11-week winning streak.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 1% and 0.4% respectively while Shanghai is off 0.3%. SGX Nifty is suggesting around 90 points higher start for our market.

 

In Friday's report we had said that 14490 continued to be immediate support, upon breach of which, 14222, the bottom made Monday, would be the crucial support to eye.

 

Nifty broke 14490 support and plunged all the way to 14357 before closing at 14372. However, the benchmark is set to open near 14450 today.

 

14620 is the immediate resistance on the hourly chart, above which, 14753, the top made during the week, would be the next hurdle.

 

20-DMA, placed around 14320, is the immediate support, upon breach of which, 14222, the bottom made during last week, would be the next important level to eye.

 

Kotak Mahindra Bank and L & T will report their quarterly earnings today.

 

STAY LONG WITH THE STOP-LOSS OF 14490

 

STAY LONG WITH THE STOP-LOSS OF 14490

 

WORLD MARKETS

 

Nasdaq, helped by 3.7% climb in Apple, rose 0.6% while S & P 500 and Dow ended little changed.

 

Joe Biden signed a number of executive orders on his first day in office and is expected to start working on his proposed $1.9 trillion economic stimulus plan right away.

 

Weekly jobless claims totaled 900,000 for the week ended Jan. 16, lower than the estimate of 925,000. December Housing starts data also came in better than expected.

 

Shares of IBM fell more than 6% in the extended session after fourth-quarter revenue fell 6% on an annualized basis, the fourth consecutive quarter of declines.

 

Brent crude futures fell 3 cents to $56.05 a barrel while WTI crude futures settled 18 cents, or 0.3%, lower at $53.13 per barrel. U.S. crude oil inventories rose 2.6 million barrels last week, as against expectation  of a 1.2 million-barrel fall.

 

Among his first actions as president, Joe Biden announced America’s return to the Paris climate accord to combat climate change and revoked a permit for the Keystone XL oil pipeline project from Canada.

 

The dollar index fell 0.3% to 90.103. Spot gold fell 0.2% to $1,867.56 per ounce.

 

European markets fell 0.1%-1%. The European Central Bank kept interest rates unchanged but said it stands ready to act as coronavirus infection rates rise across the euro zone, leading to renewed lockdown measures.

 

AT HOME

 

After rising nearly seven tenth of a percent and hitting fresh record highs, benchmark indices nosedived more than a percent to end lower by a third of a percent. Sensex, after hitting a milestone of 50000 and touching a high of 50184, ended at 49624, down 167 points. Nifty settled at 14590, down 54 points. Nifty mid-cap and small-cap indices fell 1.2% and 0.6% respectively. BSE Telecom and Realty indices tumbled 2.6% each, becoming top losers among the sectoral indices while Consumer Durables and Energy indices were the top gainers, up 1.5% and 1.1% respectively.

 

FIIs net bought stocks and index futures worth Rs 1615 cr and 1102 cr respectively but net sold stock futures worth Rs 195 cr. DIIs were net sellers to the tune of Rs 1039 cr.

 

Rupee appreciated 4 paise to end at 72.99/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-0.5%. SGX Nifty is trading around 14620, suggesting around 20 points higher start for our market when compared to yesterday's close of Nifty future.

 

In yesterday's report we had said that 14900-15000 was the next major target as well as resistance zone to eye and had advised holding on to long positions with the stop-loss of 14490.

 

Nifty, after touching a high of 14753, plunged to 14517 before closing at 14590.

 

14900-15000, around which an upward sloping trendline adjoining tops made in 2010 and 2015 is placed, continues to be next major target as well as resistance zone to eye.

 

14490 continues to be immediate support, upon breach of which, 14222, the bottom made Monday, would be the crucial support to eye.

 

Meanwhile, trading longs can be held on to with the stop-loss of 14490.

 

Reliance Industries will report their quarterly earnings today.

 

14900-15000 IS THE NEXT TARGET ZONE; 14490 IS IMMEDIATE SUPPORT

 14900-15000 IS THE NEXT TARGET ZONE; 14490 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices climbed 0.8%-2% to hit record highs as the latest batch of strong corporate earnings rolled in and Joe Biden was sworn in as commander in chief.

 

Netflix soared 16% after the company reported strong subscriber growth and said it’s considering share buybacks.

 

Brent crude rose 40 cents to $56.30 a barrel while WTI crude settled 26 cents, or 0.5%, higher at $53.24 per barrel.

 

Dollar index ended little changed at 90.475. Spot gold rose 1.3% to $1,863.48 per ounce.

 

European markets rose 0.4%-0.9%. UK Consumer Price Index (CPI) inflation climbed to 0.6% in December from 0.3% in November. Italian Prime Minister Giuseppe Conte won a confidence vote in the upper house Senate on Tuesday, following a similar vote in the lower house of parliament on Monday.

 

AT HOME

 

Yesterday's mammoth upmove got extended as benchmark indices rose eight tenth of a percent to hit fresh record intraday as well as closing highs. Sensex settled at 49792, up 393 points while Nifty added 123 points to finish at 14644. Nifty mid-cap and small-cap indices rose 1% and 0.6% respectively. BSE Auto and IT indices rose 2.2% and 1.8% respectively, becoming top gainers among the sectoral indices while Utilities and FMCG indices were the top losers, down 0.3% and 0.2% respectively.

 

FIIs net bought stocks worth Rs 2289 cr but net sold index futures and stock futures worth Rs 1313 cr and 333 cr respectively. DIIs were net sellers to the tune of Rs 865 cr.

 

Rupee appreciated 13 paise to end at 73.03/$.

 

OUTLOOK

 

Today morning, except 0.2% lower Hang Seng, other Asian markets are trading with gains of 0.2%-0.8%. SGX Nifty is suggesting around 55 points higher start for our market.

 

In yesterday's report we had said that 14546, the top Tuesday was the immediate hurdle, upon crossover of which, 14653, the top made last week, would be the next target/resistance to eye.

 

Nifty crossed 14546 hurdle and surged all the way to 14666 before closing at 14644. The benchmark is set to open near 14700 today.

 

14900-15000, around which an upward sloping trendline adjoining tops made in 2010 and 2015 is placed, would be next major target as well as resistance zone to eye.

 

Immediate support on the hourly chart is placed at 14490, with the stop-loss of which, trading longs should be held on to.

 

Asian Paints and Bajaj Auto will report their quarterly earnings today.

 

14550 IS THE IMMEDIATE HURDLE; 14222 IMMEDIATE SUPPORT

 

14550 IS THE IMMEDIATE HURDLE; 14222 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices rose 0.4%-1.5% with the Nasdaq on the top on the back of comments from U.S. Treasury Secretary nominee Janet Yellen ahead of Biden’s inauguration on Wednesday. Big technology stocks rebounded from last week’s sharp losses.

 

Janet Yellen, President-elect Joe Biden’s designated nominee for Treasury Secretary and a former chair of the Federal Reserve, appearing before the Senate Finance Committee, urged lawmakers to “act big” on the next coronavirus relief package, adding that the benefits outweigh the costs of a higher debt burden.

 

Biden will succeed President Donald Trump as the 46th president of the United States today. Markets will be on the lookout for any further information about his $1.9 trillion Covid-19 relief plan unveiled last week.

 

In Corporate earnings, Goldman Sachs beat while Bank of American missed expectations.

 

Brent crude futures rose $1.15, or 2.1%, to settle at $55.90 per barrel, while WTI crude settled 62 cents, or 1.2%, higher at $52.98 per barrel.

 

Dollar index dropped 0.3% to 90.531. Spot gold rose 0.2% to $1,840.38 per ounce. The yield on the benchmark 10-year Treasury note was flat at 1.090%.

 

Netflix soared 10% in extended trading after the company reported strong subscriber growth and said it’s considering share buybacks.

 

European markets fell 0.1%-0.3%. Germany's ZEW economic sentiment index rose to 61.8 in January, up from 55.0 in the previous month and beating estimate of 60.

 

AT HOME

 

Bulls came back with a vengeance as benchmark indices soared 1.7% each, recouping three-fourth of the losses suffered in previous two sessions put together. Sensex settled at 49398, up 834 points while Nifty added 240 points to finish at 14521. Nifty mid-cap and small-cap indices surged 2.3% and 1.7% respectively. All the BSE sectoral indices ended in green, with Realty and Metal indices leading the tally, up 4% and 3% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 258 cr, 509 cr and 977 cr respectively. DIIs were net sellers to the tune of Rs 199 cr.

 

Rupee appreciated 11 paise to end at 73.16/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.6% and 0.1% respectively while Nikkei is down 0.4%.  SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 14490 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

Nifty crossed 14490 hurdle and surged all the way to 14546 before closing at 14521. The benchmark is set to open near 14450 today.

 

14546, the top made yesterday, also coincided with a trendline resistance adjoining recent tops on the hourly chart. A crossover of this hurdle is required for a fresh upmove. If that happens, 14653, the top made last week, would be the next target/resistance to eye.

 

14222, the bottom made Monday, is now the important immediate support to eye.

 

Bajaj Finance and Bajaj Finserve will report their quarterly earnings today.