22500 ABOVE 22126; 21625 IS IMMEDIATE SUPPORT

 

22500 ABOVE 22126; 21625 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.4%-1.7% on Friday as quarterly results from technology companies including Meta topped expectations and the January jobs report came in much better than expected.

 

Meta surged more than 20% after earnings topped estimates and company announced its maiden dividend and also authorized a $50 billion share buyback program. Amazon shares jumped 8% on a fourth-quarter earnings beat.

 

U.S. economy added 353,000 jobs in January, well above the estimate of 185,000. Wages expanded by 4.5% y-o-y, more than a 4.1% forecast. Average hourly earnings increased 0.6%, double what economists expected and after rising 0.4% in December.

 

U.S. 10-year treasury yield surged 14 bps to 4.024%. Dollar index jumped 0.9% to 103.96, it's highest level in seven-week. Gold fell 0.7% to $2040 per ounce.

 

Brent crude futures settled at $77.33 a barrel, shedding 1.7%. WTI crude futures fell 2% to $72.28 a barrel.

 

In Europe, FTSE fell 0.1%, CAC was little changed while DAX rose 0.4%.

 

For the week, Dow and S & P 500 gained 1.4% each while Nasdaq rose 1.1%, all extending the winning streak to fourth straight week. Both oil benchmarks lost roughly 7% on the week.

 

AT HOME

 

After climbing 2%, benchmark indices gave away two-third of the gains in noon plunge to end higher by around two-third of a percent. Sensex added 440 points to settle at 72085, up 440 points while Nifty, after hitting a record high of 22126, slipped to end at 21853, a gain of 156 points compared to previous close. Nifty mid-cap and small-cap indices gained 0.4% and 0.9% respectively. Nifty Oil & Gas and Metal indices surged 3.6% and 2.4% respectively, becoming top gainers among the sectoral indices while Bank and Financial Services indices were the losers, down 0.5% and 0.4% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 71 cr, 597 cr and 7218 cr respectively. DIIs were net buyers to the tune of Rs 2463 cr.

 

Rupee appreciated 5 paise to end at 82.92/$.

 

For the week, Sensex and Nifty gained 2% and 2.3% respectively, snapping a 2-week losing streak.

 

SBI's quarterly numbers missed estimate as deposit growth weakens in operationally weak quarter. Tata Motors delivered strong beat on estimates as JLR margins expand. The company also raised margin guidance for the JLR business for the second consecutive quarter.

 

OUTLOOK

 

Today morning, Nikkei is up 0.4% but Hang Seng and Shanghai are down 0.8% and 1.6% respectively. GIFT Nifty is suggesting a modestly lower start for our market.

 

In Friday's report we had said that 21912 continued to be next upside target, upon crossover of which, 22124, the top made in January, would be next upside level to eye and that 21449 continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty crossed 21912 and surged all the way to 22126 from where it reversed to end at 21853.

 

22126, the record high made on Friday, which roughly coincided with the earlier top made in mid-January, is the immediate hurdle, upon crossover of which, 22450-22500 would be next target area. On the way down, a trendline adjoining recent bottoms on the hourly chart, lands support around 21625, upon breach of which, 21448, the low made on Wednesday, would be next downside level to eye. Meanwhile, trading longs can be held on to with the stop-loss of 21625.

 

For Banknifty, 34-DMA, placed around 47000, is the immediate hurdle, a decisive crossover of which is required for a fresh upmove. If that happens, 47736, the 78.6% retracement level of the 48636-44429 fall, would be next upside level to eye. 45700 is the immediate support on the hourly chart, upon breach of which, 45071, the low made during the week, would be next downside level to eye.

 

Bharti Airtel will report its quarterly earnings today.

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