15000 ABOVE 14753; TRAIL STOP-LOSS TO 14336
WORLD MARKETS
US indices rose nearly a
percent and half each, extending Monday's rebound, helped by gains in
Amazon.com and Google-parent Alphabet ahead of their results and by optimism
over progress on a U.S. pandemic relief package.
Senate Majority Leader
Chuck Schumer and House Speaker Nancy Pelosi introduced a budget resolution on
Monday, the first step to getting a coronavirus relief package passed without
Republican support. Meanwhile, President Joe Biden met with the 10 Republican
senators on Monday that wrote to him over the weekend to put forward their
alternative, smaller aid proposal to his $1.9 trillion package.
Amazon reported earnings
nearly double the estimates; however, the stock move was tempered by news that
Jeff Bezos would step down as CEO. Shares of Alphabet gained 6% in after hours
trading after the reporting 23% revenue growth and topping estimates for
earning.
Social media-driven
trading frenzy or the short squeeze trade by the samller retail traders
continued to unwind. GameStop, fresh off a 400% rise last week, slid 30% on
Monday and fell another 50% Tuesday.
Silver, which had surged 7.3% on Monday, fell 8.2% yesterday to $26.59
an ounce. Spot gold, meanwhile, fell 1.4% to $1,835.11 per ounce.
Amazon reported earnings
nearly double the estimates; however, the stock move was tempered by news that
Jeff Bezos would step down as CEO. Shares of Alphabet gained 6% in after hours
trading after the reporting 23% revenue growth and topping estimates for
earning.
Brent crude rose $1.22,
or 2.2%, to $57.57 a barrel for its third straight day of gains and U.S. oil
gained 2.3%, or $1.21, to settle at $54.76 per barrel. Both hit their highest
level in a year.
The yield on the
benchmark 10-year Treasury note climbed to 1.11% while the yield on the 30-year
Treasury bond advanced to 1.88%.
European markets gained
0.8%-1.9%. Euro zone economy dropped by 0.7% in the final quarter of 2020 as
governments stepped up social restrictions, while a preliminary reading points
to an annual GDP contraction of 6.8%.
AT HOME
Budget celebration
continued as benchmark indices surged another two and a half percent to hit
record highs on closing basis. Sensex settled at 49797, up 1197 points while
Nifty added 366 points to finish at 14647. Nifty mid-cap and small-cap indices
rose 2.4% and 1.2% respectively. All the BSE sectoral indices ended in green,
with Industrials and Auto indices leading the tally, up 4.2% and 4%
respectively.
FIIs net bought stocks
worth Rs 6182 cr but net sold index futures and stock futures worth Rs 975 cr
and 921 cr respectively. DIIs were net sellers to the tune of Rs 2035 cr.
Rupee appreciated 6 paise
to end at 72.96/$.
OUTLOOK
Today morning, Nikkei is
up 0.7% while Hang Seng and Shanghai are down half a percent each. SGX Nifty is
suggesting around 80 points higher start for our market.
In yesterday's report we
had said that 14753, the top made last week, was the next target/resistance to
eye and had advised holding on to long positions with the stop-loss of 14000.
Nifty surged to touch a
high of 14731 before closing at 14647, nearly achieving 14753 target and
vindicating our view. The benchmark is set to open near 14700 today.
14753 continues to be upside resistance to eye, upon crossover of which 15000 would be the next target.
14336, the lower end of
the gap created by yesterday's gap-up opening, will now act as immediate
support, upon breach of which 14000 would be the next support.
Bharti Airtel will report
their quarterly earnings today.
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