12700 IS THE NEXT UPSIDE TARGET; 12367-12280 IS THE SUPPORT ZONE

 

12700 IS THE NEXT UPSIDE TARGET; 12367-12280 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

Dow and S & P 500 climbed 3% and 1.2% respectively to hit new intraday record highs but Nasdaq fell 1.5%, as promising vaccine news sent stocks benefiting from economic reopening soaring while stay-at-home plays plunged.

 

Pfizer and BioNTech announced their coronavirus vaccine was more than 90% effective in preventing Covid-19.

 

Airline stocks jumped more than 15%, while shares of Cruise operators surged more than 25% each. On the flip side, some of the popular stay-at-home plays such as Zoom Video and Netflix nosedived.

 

Brent crude surged $3.11, or 7.9%, to $42.56 a barrel, while WTI crude settled up $3.15, or 8.5%, at $40.29 for their biggest daily gain in more than six months.

 

European markets soared 4.7%-7.7%.

 

AT HOME

 

After solid last week, it was a spectacular start to the new week as benchmark indices soared 1.6% each to hit record highs. Sensex settled at 42597, up 704 points while Nifty finished at 12461, up 197 points. BSE mid-cap and small-cap indices rose 1% and 0.6% respectively. Except 0.1% lower Healthcare index, all the BSE sectoral indices ended in green with Telecom index and Bankex being the top gainers, up 3.8% and 2.8% respectively.

 

FIIs net bought stocks and index futures worth Rs 4548 cr and 905 cr respectively but net sold stock futures worth Rs 755 cr. DIIs were net sellers to the tune of Rs 3036 cr.

 

Rupee appreciated 4 paise to end at 74.16/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up a percent while Shanghai is little changed. SGX Nifty is suggesting around 200 points higher start for our market.

 

In yesterday's report we had said that 12430, the top made in January, was the next upside target above which 12500 would be the next level to eye. We had added that once 12500 is taken out, 12700, where a rising trendline adjoining tops made in August 2018 and June 2019 is placed, would be the next major target/resistance to eye.

 

Nifty surged all the way to 12474 before closing at 12461 and is set to open near 12650 today.

 

12700, where a rising trendline adjoining tops made in August 2018 and June 2019 is placed, is the next major target/resistance to eye.

 

12367-12280, the gap created by yesterday’s gap-up opening, would work as the support zone.

 

Trail stop-loss in long positions to 12280.

 

12500, 12700 ABOVE 12430; TRAIL STOP-LOSS TO 12027

 

12500, 12700 ABOVE 12430; TRAIL STOP-LOSS TO 12027

 

WORLD MARKETS

 

Dow fell 0.2% while S & P 500 and Nasdaq ended little changed on Friday, looking for clarity around election results.

 

While, according projections, democratic nominee Joe Biden was leading votes were still being counted in several key states including Nevada, Arizona, Pennsylvania and Georgia.

 

The U.S. economy added 638,000 jobs last month, topping an estimate of 530,000. Unemployment rate fell to 6.9% in October from 7.9% in September.

 

In Europe, FTSE inched up 0.1% while DAX and CAC fell 0.7% and 0.5% respectively.  Italy recorded its highest daily death toll since April on Thursday and Italian regions entered partial lockdowns under the government’s new tiered system. Greece also announced a national lockdown. Germany’s industrial output grew by 1.6%, below a forecast of 2.7%.

 

US indices notched their best weekly performance since April, rising 6.9%-9%. European markets surged 6-8%. Asian equities climbed 2.7%-6.7%.

 

Later, on Saturday, Biden was projected to win Pennsylvania as well as Nevada, taking his tally to 290 and making him the winner of the elction. However, Trump refused to concede and said that as soon as Monday his team will start “prosecuting our case in court to ensure election laws are fully upheld.”

 

Meanwhile, U.S. reported more than 126,000 new cases of the coronavirus two days in a row and has reported a new record daily spike in cases every day over the past four days.

 

AT HOME

 

It was a strong finish to solid week as Sensex and Nifty climbed 1.3% and 1.2% respectively, extending the winning streak to fifth straight day and closing at the highest level since 17th January. Sensex settled at 41893, up 552 points while Nifty added 143 points to finish at 12263. BSE mid-cap and small-cap indices rose 0.4% and 0.5% respectively. BSE Energy index climbed 3.2%, becoming top gainer among the sectoral indices, followed by 1.8% higher Bankex and Finance indices. Telecom and Healthcare indices were the top losers, down 0.9% and 0.6% respectively.

 

FIIs net bought stocks and index futures worth Rs 4870 cr and 521 cr respectively but net sold stock futures worth Rs 23 cr. DIIs were net sellers to the tune of Rs 2939 cr.

 

Rupee appreciated 19 paise to end at 74.20/$.

 

For the week, Sensex and Nifty soared 5.8% and 5.3% respectively, registering the biggest weekly gain in 5 months and closing at the highest level since the week ended 17th January.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 1%-2% and SGX Nifty is suggesting around 160 points higher start for our market. US futures are up 1.2%-2%.

 

Readers would recall that we had turned our view on Nifty bullish after 11770 hurdle was taken out and have been advising holding on to long positions with the trailing stop-loss. Afer 12025 hurdle was taken out, we had given next target of 12246, which was achieved on Friday as Nifty soared to close at 12263. The benchmark is set to open above 12400 today.

 

12430, the top made in January, is the next upside target above which 12500 would be the next level to eye. Once 12500 is taken out, 12700, where a rising trendline adjoining tops made in August 2018 and June 2019 is placed, would be the next major target/resistance to eye.

 

On the way down, 12027-11930, the gap created by gap-up opening on Thursday, would be the support zone. Meanwhile, long positions can be held on to with the stop-loss of 12027.

 

12246 IS THE NEXT UPSIDE TARGET;TRAIL STOP-LOSS TO 11930

 

12246 IS THE NEXT UPSIDE TARGET;TRAIL STOP-LOSS TO 11930

 

WORLD MARKETS

 

Dow and S & P 500 climbed 2% each while Nasdaq surged 2.6%, extending the winning streak to fourth straight day and closely monitoring vote-counting in key battleground U.S. states that will decide the election.

 

Votes are still being counted in several states including Arizona, Pennsylvania, Nevada and Georgia. Meanwhile, Republicans have filed a flurry of legal challenges in several states related to the ongoing vote counts, and the Trump campaign said it will request a recount in Wisconsin.

 

Fed kept interest rates unchanged near zero, noting in its post-meeting statement that economic activity remains “well below” levels prior to the coronavirus pandemic.

 

Brent crude fell 38 cents, or 0.9%, to $40.85 a barrel and WTI crude settled 36 cents, or 0.9%, lower at $38.79.

 

European markets rose 0.4%-2%. The Bank of England’s (BOE) Monetary Policy Committee (MPC), along with maintaining its main lending rate at 0.1%, also voted to expand its target stock of asset purchases to £895 billion.

 

AT HOME

 

Sensex and Nifty soared 1.8%, extending the winning streak to fourth straight day and closing at the highest level since 13th February and 19th February respectively. This was the biggest daily gain for both the indices after 25th September. Sensex settled at 41340, up 724 points while Nifty added 211 points to finish at 12120. BSE mid-cap and small-cap indices climbed 1.7% each. Except 0.6% lower Realty index, all the BSE sectoral indices ended higher with Metal and Power indices leading the tally, up 4.4% and 3.2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 5368 cr, 3441 cr and 588 cr respectively. DIIs were net sellers to the tune of Rs 2208 cr.

 

Rupee appreciated 35 paise to end at 74.39/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1% and 0.3% respectively while Shanghai is off 0.2%. SGX Nifty is suggesting around 25 points higher start for our market.

 

Just to reiterate, we had turned our view on Nifty bullish after 11770 hurdle was taken out and have been advising holding on to long positions with the trailing stop-loss. In yesterday's report we had said that 12025, the top made last month, was the next upside target above which, 12246, the top made in February this year, would be the next target.

 

Nifty soared to touch a high fo 12131 before closing at 12120.

 

12246, the top made in February this year, continues to be next upside target.

 

11930, the lower end of the gap created by yesterday's gap-up opening, would work as the immediate support and with the stop-loss of which trading longs can be held on to.

 

ITC, Cipla and Ashok Leyland will report their quarterly earnings today.

 

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.

 

11864, 11942 ARE UPSIDE LEVELS TO EYE; 11700 IS IMMEDIATE SUPPORT

 

11864, 11942 ARE UPSIDE LEVELS TO EYE; 11700 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices rose 1.8%-2.1%, hoping for a clear winner to emerge from the Presidential election.

 

In the polls leading up to election, Joe Biden was ahead of Trump. Market is also watching some key Senate races, which could lead to Democrats taking control of Congress. Markets are betting that a so-called blue wave — a scenario in which Democrats win the White House, obtain a Senate majority and keep control of the House — could facilitate the passing of new fiscal stimulus.

 

Brent futures rose 84 cents, or 2.2%, to $39.81 a barrel, while WTI crude settled 85 cents, or 2.3%, higher at $37.66 per barrel.

 

European markets climbed 2.3%-3.2%.

 

AT HOME

 

Benchmark indices climbed a percent and fourth, registering biggest gain in nearly a month and extending the winning streak to second straight day. Sensex settled at 40261, up 503 points while Nifty added 144 points to finish at 11813. BSE mid-cap and small-cap indices rose 0.4% each. BSE Bankex and Finance indices soared 3.2% and 2.9% respectively, becoming top gainers among the sectoral indices while Realty and FMCG indices were the top losers, down 2.2% and 1.1% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2274 cr, 480 cr and 745 cr respectively. DIIs were net sellers to the tune of Rs 1101 cr.

 

Rupee appreciated 2 paise to end at 74.40/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.5% and 0.4% respectively while Shanghai is little changed. SGX Nifty is suggesting around 25 points lower start for our market.

 

In yesterday's report we had reiterated the view that 11770 continued to be immediate hurdle on the hourly chart, upon crossover of which, 11942, the top made last week, would be the next resistance.

 

Nifty crossed 11770 hurdle in the initial trade and surged all the way to 11836 before closing at 11813.

 

11864, the two-third retracement level of the recent 12025-11535 fall, is the immediate hurdle to eye, upon crossover of which, 11942, the top made last week, would be the next target.

 

11700 is the immediate support on the hourly chart, upon breach of which, 11535, the bottom made last week, would be the crucial support.

 

NIFTY HOLDS 11535 SUPPORT; 11770 IS IMMEDIATE HURDLE

 

NIFTY HOLDS 11535 SUPPORT; 11770 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices gained 0.4%-1.6%, rebounding from the steep October sell-off, ahead of Tuesday's Presidential election between incumbent Donald Trump and former Vice President Joe Biden.

 

According to the U.S. Elections Project, more than 94 million votes have already been cast, already exceeding or nearing total levels in 2016.

 

Various polls are putting Biden ahead of Trump.  According to a NBC News/Wall Street Journal poll from Sunday, Biden earned 52% of support from registered voters compared to 42% for Trump.

 

October ISM Manufacturing PMI rose to 59.3 in October, its highest level in more than two years.

 

Earlier data showed China's October Caixin/Markit PMI came in at 53.6, its highest in nearly a decade in October.

 

After falling more than $2 initially, oil rebounded to end higher. Brent crude rose $1.14, or 3%, to $39.08 per barrel while WTI settled $1.02, or 2.8%, higher at $36.81 per barrel.

 

European markets climbed 1.4%-2.6%. October’s final manufacturing PMI for the euro zone came in at 54.8, up from 53.7 in September and outstripping expectations.

 

AT HOME

 

After falling about three fourth of a percent in the initial trade, benchmark indices climbed nearly a percent from the bottom of the day to end higher by around three tenth of a percent, snapping three-day losing streak. Sensex settled at 39757, up 143 points while Nifty added 26 points to finish at 11669. BSE mid-cap index rose 0.4% but the small-cap index fell 0.7%. BSE Bankex and Telecom indices soared 4.2% and 3.8% respectively, becoming top gainers among the sectoral indices while Energy index nosedived 7.1%, followed by 2.5% lower Oil & Gas index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 741 cr, 1227 cr and 734 cr respectively. DIIs were net sellers to the tune of Rs 544 cr.

 

Rupee depreciated 33 paise to end at 74.73/$.

 

India's IHS Markit Manufacturing PMI rose from 56.8 in September to 58.9 in October, which is the best reading in since mid 2008.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.7%-1.6% and SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 11535, the weekly low made on Friday, also coincided with the 50-Day Moving Average, 38.2% retracement level of the entire 10790-12025 upmove as well as the lower band of bollinger on the daily chart and hence was the important support to eye. We had also said that 11770 was the immediate hurdle on the hourly chart.

 

Nifty, after touching a low of 11557 in the initial trade, rebounded to touch a high of 11725 before closing at 11669. The benchmark is set to open near 11750 today.

 

11770 continues to be immediate hurdle on the hourly chart, upon crossover of which, 11942, the top made last week, would be the next resistance.

 

11535 continues to be important immediate support.

 

11535 IS THE SUPPORT; 11770 IS IMMEDIATE HURDLE

 

11535 IS THE SUPPORT; 11770 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.6% and 1.2% respectively while Nasdaq nosedived 2.4% on Friday as big tech shares fell following release of quarterly and election uncertainty and rising covid cases weighed on the sentiment.

 

Apple fell 5.6% after reporting a 20% decline in iPhone sales and failing to offer any guidance for the quarter ahead. Amazon dropped 5.5% even after reporting blowout third-quarter results with a big beat on the top line. Twitter plunged more than 21% after reporting user growth that fell short of expectations. Facebook was off by 6.3% amid a surprise decline in active users in Canada and the U.S. Alphabet however rose 3.8% after posting quarterly results that topped estimates.

 

Senate Majority Leader Mitch McConnell adjourned the Senate until Nov. 9, making it highly unlikely for Democrats and Republicans to reach a deal on new fiscal stimulus before the election on Tuesday. Treasury Secretary Steven Mnuchin, meanwhile, accused House Speaker Nancy Pelosi of miscasting the state of the stalled negotiations, calling it a “political stunt.”

 

Brent crude slipped for a third day and settled 19 cents, or 0.5%, lower at $37.46 per barrel. WTI crude settled 38 cents, or 1.1%, lower at a five month low of $35.79 per barrel.

 

In Europe, FTSE and DAX fell 0.1% and 0.4% respectively while CAC rose 0.5%. Euro zone GDP jumped by 12.7% in the third quarter. Eurozone October inflation came in at -0.3%, unchanged from the previous month.

 

For the week, US indices nosedived 5.5%-6.5%, posting their biggest weekly losses since March. They also posted their first back-to-back monthly losses since March. The Dow lost more than 6% this month while the S&P 500 and Nasdaq each declined by more than 5% in October.

 

US reported a record 99,321 new Covid-19 cases on Friday. U.K. Prime Minister announced Saturday that England will adopt a second national four week lockdown starting Thursday following a surge in virus cases. Data on Saturday showed China's official manufacturing PMI fell to 51.4 in October from 51.5 in the preceding month. Data today showed Caixin/HIS Markit manufacturing PMI rose to 53.6 from 53.

 

AT HOME

 

Sensex and Nifty ended lower by 0.3% and 0.2% respectively after a roller coaster session, extending the losing streak to third straight day. Sensex settled at 39614, down 135 points while Nifty lost 28 points to finish at 11642. BSE mid-cap index gained 0.6% while small-cap index closed flat. BSE Telecom index tumbled 2.4%, becoming top loser among the sectoral indices, followed by 1.2% lower Auto index. Realty index was the top gainer, up 2.2%, followed by 1.5% higher Metal and Energy indices.

 

FIIs net sold stocks and index futures worth Rs 871 cr and 966 cr respectively but net bought stock futures worth Rs 759 cr. DIIs were net buyers to the tune of Rs 631 cr.

 

For the week, Sensex and Nifty fell 2.6% and 2.4% respectively. For the month, Sensex and Nifty rose 4% and 3.5% respectively.

 

Maruti and Hero MotoCorp registered record sales in October while Escorts posted highest October sales. Maruti sales rose 18.9% to 1.82 lk units. Hero Motocorp sales surged 35% to 8.06 lk units. Escorts sales rose 2.3% to 13664 units. Eicher Motor's Royal Enfield sales fell 7% to 66891 units while VECV sales rose 11.9% to 4200 units.

 

GST collections in October stood at over ₹1.05 lakh crore, crossing for the first time ₹1 lakh crore mark since February this year.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.5% and 0.8% respectively while Shanghai is marginally higher. SGX Nifty is suggesting a marginally higher start for our market.

 

In Friday's report we had said that 11590, where 34-DMA was placed, continues to be important immediate support. Nifty broke this level to touch a low of 11535, but rebounded from there to end at 11642, holding on to 34-DMA support on closing basis.

 

11535, the weekly low made on Friday, also coincides with the 50-Day Moving Average, 38.2% retracement level of the entire 10790-12025 upmove as well as the lower band of bollinger on the daily chart. This makes 11535 an important support to eye. If this level breaks, 11407 the 50% retracement levels of the 10790-12025 upmove, would be the next supports.

 

On the way up, 11770 is the immediate hurdle on the hourly chart, upon crossover of which, 11942, the top made during the week, would be the next hurdle.