10800 CONTINUES TO BE IMMEDIATE HURDLE; 10583 IMMEDIATE SUPPORT

10800 CONTINUES TO BE IMMEDIATE HURDLE; 10583 IMMEDIATE SUPPORT

WORLD MARKETS

US indices soared 1.6%-2.2% after the Federal Reserve kept interest rates unchanged and said it will be "patient" with raising rates moving forward. Strong earnings from Boeing and Apple also boosted the sentiment.

In a statement, the central bank said: "The Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate." The statement also dropped the word "gradual." In a separate statement, Fed said it "is prepared to adjust any of the details for completing balance sheet normalization in light of economic and financial developments."

In a news conference, Fed Chair Powell said that the case for hiking rates "has weakened," noting he would "need to see a need for further rate hikes."

Boeing shares jumped 6% after its quarterly earnings easily beat expectations and it gave strong earnings guidance for 2019. Apple climbed 7% after reporting a quarterly profit that barely beat estimates. AMD shares surged 20% after releasing earnings that matched expectations.

Data from ADP and Moody's Analytics showed U.S. private payrolls grew by 213,000 in January, beating expected gain of 178,000.

US oil rose 92 cents or 1.7% to $54.23 a barrel, its highest level in 2 months while Brent rose 43 cents to $61.75.

In Europe, FTSE and CAC climbed 1.6% and 1% respectively but DAX fell 0.3%. Data from European Commission showed economic sentiment in the euro zone slipped to 106.2 points in January, down from 107.4 in December.

AT HOME

Benchmark indices ended absolutely flat after a choppy session. Sensex settled at 35591, down 1 point while Nifty was unchanged at 10651. BSE mid-cap and small-cap indices however managed to gain 0.2% and 0.8% respectively. BSE Metal index and Bankex climbed 1.9% and 1.4% respectively, becoming top gainers among the sectoral indices while Telecom index was the top loser, down 1.3%, followed by 1% lower Energy and FMCG indices.

FIIs net bought stocks and stock futures worth Rs 130 cr and 864 cr respectively but net sold index futures worth Rs 1667 cr. DIIs were net buyers to the tune of Rs 502 cr.

Rupee depreciated 1 paise to end at 71.12/$.

ICICI Bank's net profit came below expectation but NII was a beat and asset quality improved. Net profit fell 2.7% to Rs 1605 cr while NII rose 20.5% to Rs 6875 cr.

Slippages, at Rs. 2019 cr, were at 14 quarter low.

Bajaj Auto reported better-than-expected net profit but operational performance was a miss. Revenue rose 16% to Rs 7409 cr, EBITDA was down 7.5% at Rs 1156 cr, margin dipped 400 bps to 15.6% and net profit rose 15.7% to Rs 1102 cr.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.9% and SGX Nifty is suggesting about 50 points higher start for our market.

After achieving downside target of 10612 on Tuesday, yesterday was a day of consolidation as Nifty, after a choppy session, ended absolutely flat at 10652.

The benchmark is slated to open around 10700 today. 10800 continues to be immediate hurdle on the way up, upon crossover of which 10987, the top made last week, would be the bigger resistance to eye.

10583, the bottom made on Tuesday, continues to be immediate support. 

Bharti Airtel, Indiabulls Housing, Hero Motocorp, UPL, Powergrid and VEDL will report their quarterly earnings today.

NIFTY REBOUNDS AFTER ACHIEVING 10612 TARGET; 10800 IS IMMEDIATE HURDLE

NIFTY REBOUNDS AFTER ACHIEVING 10612 TARGET; 10800 IS IMMEDIATE HURDLE

WORLD MARKETS

Dow gained 0.2% but S & P 500 and Nasdaq lost 0.2% and 0.8% respectively ahead of Apple earnings and resumption of US-China trade talks.

Chinese Vice Premier Liu He is set to meet U.S. officials on Wednesday and Thursday.

US oil rose 2.5% to $53.31 a barrel and Brent added $1.29, or 2.2% to reach $61.22 after Washington imposed sanctions on Venezuelan state-owned oil firm PDVSA in a move that may curb the country's crude exports.

In Europe, DAX was flat while other markets gained 0.5%-1.3% with FTSE on the top.

Apple reported earnings after market hours, which were largely in line with expectations.

AT HOME

After falling nearly three fourth of a percent, benchmark indices recouped most of the losses in late noon surge to end just marginally lower. Sensex settled at 35592, down 64 points while Nifty lost 9 points to finish at 10652. BSE mid-cap index gained 0.4% but small-cap index fell 0.1%. BSE FMCG and Capital Goods indices tumbled 1.2% and 1% respectively, becoming top gainers among the sectoral indices while Telecom and Healthcare indices were the top gainers, up 1% and 0.8% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 354 cr, 466 cr and 165 cr respectively. DIIs were net buyers to the tune of Rs 81 cr.

Rupee depreciated 1 paise to end at 71.11/$.

HCL Tech was a beat on revenue and net profit while margins were in-line. Constant currency revenue growth was strong at 5.6% q-o-q and 13% y-o-y. Rupee revenue rose 5.6% to Rs 15699 cr, EBIT was up 4% at Rs 3086 cr, margin fel 24 bps to 19.66% and net profit rose 2.8% to Rs 2611 cr. The company maintained its FY19 revenue and margin guidance.

Axis Bank posted good set of earnings with improvement in asset quality. NII rose 18.4% to Rs 5604 cr while Net profit surged 130% to Rs 1680 cr. Gross NPA ratio improved 19 bps to 5.75% and net NPA ratio fell 18 bps to 2.36%. Net interest margin improved to 3.47% from 3.36%. Slippages stood at Rs 3746 cr as against Rs 2777 cr.  98% of corporate slippages came from the BB and below pool.

HDFC reported in-line with estimate net profit while NII was a beat. NII rose 16.6% to Rs 3191 cr while Net profit fell 60% y-o-y to Rs 2114 cr. Net interest margin remained unchanged at 3.5% q-o-q. Gross NPA ratio rose 9 bps to 1.22% q-o-q.

Bajaj Finance posted slight beat on net profit and NII front while asset quality deteriorated slightly. NII rose 42% to Rs 3094 cr while Net profit surged 47.8% to Rs 1023 cr. Gross NPA ratio rose 6 bps q-o-q to 1.55% while Net NPA ratio rose 9 bps to 0.62%.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.3%-0.6% and SGX Nifty is suggesting about 15 points higher start for our market.

After Nifty broke the immediate support of 34-DMA placed around 10800, we had given downside target of 10700 followed by 10612. Nifty yesterday touched a low of 10583 before closing at 10652, achieving the targets mentioned above and vindicating our view.

10583, the bottom made yesterday, is the immediate support to eye below which 10500, the 50% retracement level of the entire 10004-10987 upmove, would be the next support.

Immediate hurdle on the hourly chart is placed around 10800 above which 10987, the top made last week, would be the major resistance to eye.

The U.S. Federal Reserve is set to announce its monetary policy decision following a two day meeting of the Federal Open Market Committee and is expected to leave interest rate unchanged.

10612 IS NEXT SUPPORT; 10815 IMMEDIATE HURDLE

10612 IS NEXT SUPPORT; 10815 IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 0.8% each while Nasdaq slipped 1.1% on the back of weak guidance from Caterpillar and Nvidia, which stoked fears about the Chinese economy slowing.

Caterpillar nosedived 9% after posting weaker-than-expected earnings for the fourth quarter because of lower demand in China. The company also issued disappointing guidance. Nvidia, meanwhile, tumbled 14% after slashing its fourth-quarter revenue guidance citing "deteriorating macroeconomic conditions, particularly in China,".

In another development, the U.S. Department of Justice yesterday filed criminal charges to officially request the extradition of Meng Wanzhou, the chief financial officer of Chinese telecommunications giant Huawei. The Justice Department also announced charges against Huawei for allegedly stealing trade secrets from T-Mobile.

US oil slipped $1.70, or 3.2% to $51.99 a barrel, its lowest closing price in two weeks. Brent fell $1.71, or 2.8%, to $59.93.

European markets fell 0.6%-1.3%.

AT HOME

Benchmark indices tumbled 1%, extending the losing streak to second straight day. Sensex settled at 35656, down 368 points while Nifty lost 119 points to finish at 10661. BSE mid-cap and small-cap indices nosedived 1.8% and 2% respectively. Except 0.8% and 0.4% higher Teck and IT indices respectively, all the BSE sectoral indices ended in red with Basic Material and Healthcare indices leading the losses, down 2.1%, followed by 2% lower Finance index.

FIIs net bought stocks and index futures worth Rs 223 cr and 417 cr respectively but net sold stock futures worth Rs 460 cr. DIIs were net buyers to the tune of Rs 92 cr.

Rupee appreciated 7 paise to end at 71.70/$.

ZEEL soared after lenders and creditors of the company gave debt-ridden Subhash Chandra's Essel Group a three-month time till April to find a buyer for half his stake in the flagship Zee Entertainment Enterprises to repay dues.

Congress president Rahul Gandhi announced that his party would ensure "minimum income guarantee" for every poor person in the country if it is voted to power in the coming Lok Sabha polls.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.9% and SGX Nifty is suggesting about 15 points lower start for our market.

After Nifty broke the 34-DMA support placed around 10800, we had given downside target of 10700 in yesterday's report. Nifty yesterday plunged all the way to 10630 before closing at 10661 and is set to open around 10650 today.

10612, the 38.2% retracement level of the entire 10004-10987 upmove, is the next support to eye.

34-DMA, now placed around 10815, will act as immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

Axis Bank, HDFC, HCL Tech, Bajaj Finance and Bajaj Finserve will report their quarterly earnings today.

NIFTY RETREATS FROM THE VICINITY OF 10945 HURDLE

NIFTY RETREATS FROM THE VICINITY OF 10945 HURDLE

WORLD MARKETS

Dow and S & P 500 rose 0.8% each while Nasdaq climbed 1.3% on Friday.

President Trump reached a temporary deal with Congress which will fund the government for three weeks until Feb. 15.

A report from The Wall Street Journal that the Fed is closer than expected to ending its balance sheet unwind, also boosted the sentiment.

U.S. Treasury Secretary Steven Mnuchin said he thought the two countries were "making a lot of progress" in trade talks and that he looked forward to discussions with China's Vice Premier Liu.

Intel plunged 7% after the company's 2019 forecast showed revenue growth of just 1%. Starbucks gained on strong sales and earnings growth.

US oil rose 1.1% to $53.69 a barrel and Brent added 61 cents, or 1%, to $61.70 as political turmoil in Venezuela threatened to tighten crude supply, but concerns over surging U.S. fuel stocks and global economic woes weighed on sentiment

European markets, except 0.1% lower FTSE, gained 1.1%-1.4%.

For the week Dow and Nasdaq rose 0.1% each, their fifth straight positive week, but S & P 500 fell 0.2%. In Europe, FTSE tumbled 2.3% but DAX and CAC rose 0.7% and 1% respectively. In Asia, Hang Seng climbed 1.8% while Nikkei and Shanghai rose 0.5% and 0.2% respectively. WTI fell about 0.2% for the week, the first weekly decline in four weeks.

AT HOME

After rising more than half a percent at the open, Sensex and Nifty nosedived more than a percent from the top of the day to end lower by 0.5% and 0.6% respectively. Sensex settled at 36025, down 170 points while Nifty finished at 10780, down 69 points. BSE mid-cap and small-cap indices tumbled 1.2% and 1.6% respectively. BSE Realty index tumbled 4.1%, becoming top loser among the sectoral indices, followed by 3.1% lower Auto and Consumer Discretionary Goods & Services indices. Telecom index climbed 1.7%, becoming top gainer, followed by 0.2% higher IT and Oil & Gas indices.

FIIs net bought stocks and index futures worth Rs 689 cr and 1208 cr respectively but net sold stock futures worth Rs 294 cr. DIIs were net sellers to the tune of Rs 147 cr.

Rupee depreciated 10 paise to end at 71.17/$.

For the week, Sensex and Nifty fell 1% and 1.2% respectively, breaking two-week winning streak.

L & T reported beat on topline and bottomline and maintained FY19 order inflow guidance at 10-12%. Order book stood at 2.84 lac cr. as on 31st December. Revenue rose 24% to Rs 35709 cr, EBITDA was up 27% at Rs 3997 cr, margin rose 30 bps to 11.2% and net profit climbed 37% to Rs 2042 cr.

Maruti, except in-line revenue, was a miss on all the counts. Revenue rose 2% y-o-y to Rs 19668 cr, EBITDA tumbled 36.4% to Rs 1931 cr, margin nosedived 600 bps to 9.8% and net profit fell 17.2% to Rs 1489 cr.

Shares of ZEE Limited and other group companies tumbled after a report said that its controlling shareholder Essel Group’s name had emerged in a probe linked to large deposits made after demonetisation.

OUTLOOK

Today morning, Nikkei is down 0.4% but Hang Seng and Shaghai are up about half a percent. SGX Nifty is suggesting about 30 points higher start for our market.

In Friday's report we had said that 10945, the top made on Wednesday, was the immediate hurdle. Nifty, after making a high of 10931 in the first half hour, plunged sharply to end at 10780 and is set to open around 10800 today.

10931, the top made Friday, is now the immediate hurdle to eye above which 10987, the top made last week, would be next resistance.

10700, where a trendline adjoining bottoms made in October and December is placed, is the downside support to eye.

NIFTY REBOUNDS FROM 34-DMA SUPPORT; 10945 IS IMMEDIATE HURDLE

NIFTY REBOUNDS FROM 34-DMA SUPPORT; 10945 IS IMMEDIATE HURDLE

WORLD MARKETS

Dow ended marginally in the red while S & P 500 and Nasdaq gained 0.1% and 0.7% respectively amid lingering concern over U.S.-China trade negotiations.

U.S. Commerce Secretary Wilbur, in a media interaction, said that the U.S. is "miles and miles" from a trade deal with China, adding the two countries have "lots and lots of issues."

Corporate earnings were good. American Airlines, JetBlue and Texas Instrument, all posted better-than-expected earnings.

Weekly jobless claims fell to 199,000 last week, their lowest in 49 years.

US crude rose 1% to $53.13 a barrel but Brent was down 2 cents at $61.12.

European markets, except 0.4% lowr FTSE, gained 0.5%-0.8%. European Central Bank left key rates unchanged at its policy meeting.

AT HOME

Benchmark indices gained a fifth of a percent, breaking two-day losing streak. Sensex added 86 points to settle at 36195 while Nifty finished at 10849, up 18 points. BSE mid-cap and small-cap indices fell 0.2% and 0.6% respectively.  BSE Realty index soared 2%, becoming top gainer among the sectoral indices, followed by 0.9% higher Energy index. Telecom index tumbled 2%, becoming top loser, followed by 1% lower Industrial index.

FIIs net sold stocks and index futures worth Rs 94 cr and 511 cr respectively but net bought stock futures worth Rs 571 cr. DIIs were net buyers to the tune of Rs 390 cr.

Rupee appreciated 26 paise to end at 71.07/$.

Yes Bank's net profit missed estimates and asset quality deteriorated while NII was a beat. Net profit fell 7% y-o-y to Rs 1001 cr while NII surged 41% to Rs 2667 cr Gross NPA ratio rose 50 bps q-o-q to 2.1% net NPA ratio rose 34 bps to 1.18%. The bank named Ravneet Gill as new MD & CEO.

Ultratech's revenue met estimate while operational performance and bottomline was a miss. Net profit rose 6.5% y-o-y to Rs 449 cr. Revenue rose 18% to Rs 8812 cr, EBITDA was up 9.5% at Rs 1391 cr while margins dipped 170 bps to 15.8%.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.7% and SGX Nifty is suggesting about 50 points higher start for our market.

In yesterday's report we had said that "34-DMA, placed around 10800, is the next downside support to eye". Nifty, after touching a low of 10799, rebounded to end at 10850 and is set to open near 10900 today.

10945, the top made on Wednesday, continues to be immediate hurdle above which 10987, the top made on Monday, would be the next resistance to eye.

10800 continues to be immediate support, below which, 10700, where a trendline adjoining bottoms made in October and December is placed, would be the next support to eye

L & T and Maruti will report their quarterly earnings today.

10700 BELOW 10800; 10945 IS IMMEDIATE HURDLE

10700 BELOW 10800; 10945 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 0.1%-0.7% on the back of strong quarterly earnings from companies like IBM, United Technologies and Procter & Gamble.

United Technologies and Procter & Gamble rose 5% each after reporting better-than-expected earnings. IBM jumped 8.5% in its best session since Oct. 18, 2017.

Officials from the Chinese finance ministry said yesterday that Beijing will boost fiscal expenditure in 2019 to bolster the country's economy.

US oil fell 39 cents to $52.62 a barrel and Brent slipped 35 cents to $61.15.

European markets fell 0.2%-0.8%.

AT HOME

After a lackluster first half, benchmark indices saw a steep fall in second half to end lower by just under a percent, extending the losing streak to second consecutive day. Sensex settled at 36108, down 336 points while Nifty lost 91 points to finish at 10831. BSE mid-cap and small-cap indices fell 0.3% and 0.2% respectively. Except 0.6% and 0.4% higher Metal and Healthcare indices respectively, all the BSE sectoral indices ended in red with FMCG index leading the losses, down 1.4%, followed by 1.2% lower Power and Consumer Durable indices.

FIIs net sold stocks and index futures worth Rs 776 cr and 315 cr respectively but net bought stock futures worth Rs 538 cr. DIIs were net buyers to the tune of Rs 584 cr.

Rupee appreciated 10 paise to end at 71.33/$.

ITC reported better-than-expected topline and bottomline but margin was a miss. Revenue rose 14.9% y-o-y to Rs 11228 cr, EBITDA was up 11.2% at Rs 4326 cr, margin fell 130 bps to 38.5% and profit was up 3.8% at Rs 3209 cr. Cigarette business revenue rose 9.6%, EBIT was up 8.8% while margin dipped 50 bps to 70.1%.

Piyush Goyal has been named interim finance minister in the absence of Arun Jaitley who is away in the US for medical treatment. Goyal is also likely to present vote on account on 1st February.

OUTLOOK

Today morning, Asian markets are trading little changed and SGX Nifty is suggesting about 10 points higher start for our market.

After getting resisted at 10985 hurdle on Monday, Nifty yesterday broke immediate support of 10860 by plunging all the way to 10811 before closing at 10831.

34-DMA, placed around 10800, is the next downside support to eye. Below 10800, 10700, where a trendline adjoining bottoms made in October and December is placed, would be the next support to eye.

10945, the top made yesterday, is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

Yes Bank and Ultratech Cement will report their quarterly earnings today.

NIFTY REBOUNDS FROM 10860 SUPPORT; 10985 CONTINUES TO BE HURDLE

NIFTY REBOUNDS FROM 10860 SUPPORT; 10985 CONTINUES TO BE HURDLE

WORLD MARKETS

US indices tumbled 1.2%-1.9%, breaking 4-day winning streak, as weak data out of China and lower global growth estimates from the IMF renewed fears of the global economy slowing down.

Beijing announced Monday that the Chinese economy grew 6.6% in 2018, the slowest pace since 1990.

IMF yesterday trimmed its 2019 global growth forecast to 3.5% from 3.7% and also cut its 2020 growth outlook to 3.6% from 3.7%.

Economic data showed U.S. existing housing sales fell to their lowest level in three years.

US crude tumbled $1.23, or 2.3%, to $52.57 while Brent dropped $1.20, or 1.9%, to $61.54.

European markets fell 0.4%-1%.

AT HOME

Benchmark indices ended lower by about four tenth of a percent, breaking 5-day winning streak. Sensex settled at 36444, down 134 points while Nifty lost 39 points to finish at 10922. BSE mid-cap and small-cap indices fell 0.1% and 0.5% respectively. BSE Metal and Basic Materials indices tumbled 2.3% and 1.2% respectively, becoming top losers among the sectoral indices while Healthcare index rose 1.2%, becoming top gainer, followed by 0.9% higher Realty and Consumer Durable indices.

FIIs net sold stocks and index futures worth Rs 79 cr and 460 cr respectively but net bought stock futures worth Rs 764 cr. DIIs were net sellers to the tune of Rs 84 cr.

Rupee depreciated 16 paise to end at 71.43/$.

Asian Paints reported better-than-expected topline and bottomline but margins slid. Revenue rose 24.3% y-o-y to Rs 5294 cr, EBITDA was up 17.1% at Rs 1043 cr, margins fell 120 bps to 19.7% and Net profit was up 14.1% at Rs 647 cr.

OUTLOOK

Today morning, Nikkei and Hang Seng are modestly lower while Shanghai is marginally higher. SGX Nifty is suggesting a flattish start for our market.

After Nifty got resisted at our indicated 10985 hurdle, in yesterday's report we had said that immediate support on the hourly chart has moved up to 10860, which should now serve as the stop-loss for trading longs.

Nifty, after touching a low of 10864, rebounded to end at 10922, holding on to the support mentioned above.

10860 continues to be immediate support, a breach of which will generate a sell on the hourly chart and would pave the way for further fall.

10985, the top made in December, continues to be immediate hurdle, a decisive crossover of which is required for a further upmove.

ITC will report its quarterly earnings today.

NIFTY ACHIEVES 10985 TARGET; TRAIL STOP-LOSS TO 10860

NIFTY ACHIEVES 10985 TARGET; TRAIL STOP-LOSS TO 10860

WORLD MARKETS

US markets were shut yesterday for Martin Luther King Jr. Day holiday.

European markets, except a flat FTSE, fell 0.2%-0.6%, after fresh data from China showed its economy grew at its slowest pace since 1990.

Official data published yesterday said China's gross domestic product (GDP) in 2018 grew 6.6% from the previous year, in line with analyst expectations but at its most sluggish rate in almost three decades.

The IMF cut global growth forecast for 2019 to 3.5% from 3.7% and for 2020 to 3.6% from 3.7% projected in October — making it the second downturn revision in three months.

U.S. crude rose 19 cents to $53.99 a barrel while Brent was up 12 cents at $62.83.

Over the weekend, US President Trump said a trade deal with China "could very well happen," but denied what he called "false reports" that the U.S. was considering lifting duties on Chinese imports.

AT HOME

Benchmark indices ended higher by half a percent, extending the winning streak to fifth consecutive day. Sensex settled at 36578, up 192 points while Nifty added 55 points to finish at 10961. BSE mid-cap and small-cap indices however, fell 0.6% and 0.7% respectively. BSE Energy index climbed 2.7%, becoming top gainer among the sectoral indices, followed by 0.7% higher Oil & Gas index. Realty and Auto indices were the top losers, down 1.2% and 1.1% respectively.

FIIs net sold stock worth Rs 300 cr but net bought index futures and stock futures worth Rs 485 cr and 389 cr respectively. DIIs were net buyers to the tune of Rs 521 cr.

Rupee depreciated 9 paise to end at 71.27/$.

Kotak Mahindra Bank reported better-than-expected net profit and NII figures along with improvement in asset quality. Net profit rose 23% y-o-y to Rs 1291 cr while NII was up 27% at Rs 2939 cr. Net interest margin expanded to 4.33% from 4.2%.  Total advances grew 23%. Gross NPA ratio improved to 2.07% from 2.15% q-o-q and net NPA ratio fell to 0.71% from 0.81%.

IMF said it expects India's GDP to grow at 7.5% in FY2020, up from an earlier forecast of 7.4% and at 7.7% in FY2021. For FY19, GDP growth is expected at 7.3%.

OUTLOOK

Today morning, Asian markets are trading flat to modestly lower and SGX Nifty is suggesting a flattish start for our market.

For past couple of sessions, we had been working with upside target of 10985. Nifty yesterday touched a high of 10987 before closing at 10961, vindicating our view.

Above 10987, next upside target to eye would be 11090, which is the 61.8% retracement level of the entire 11760-10004 fall.

Immediate support on the hourly chart has moved up to 10860, with the stop-loss of which, trading longs can be held on to.

Asian Paints and TVS Motors will report their quarterly earnings today.

10985 CONTINUES TO BE UPSIDE TARGET; SAY LONG WITH THE STOP-LOSS OF 10800

10985 CONTINUES TO BE UPSIDE TARGET; SAY LONG WITH THE STOP-LOSS OF 10800

WORLD MARKETS

US indices soared 1%-1.4% on Friday on the back of progress in trade negotiations between China and the U.S and strong manufacturing data.

News reports suggested that China had offered a six-year increase in U.S. imports during recent trade talks with an aim to reduce the annual U.S. deficit to zero by 2024.

Manufacturing data released by the Fed showed the sector's biggest gain in 10 months in December.

Netflix fell 4% on the back of disappointing guidance for the first quarter of 2019. American Express also fell after reporting disappointing earnings.

US crude surged $1.73 or 3.3% to $53.80, its higest level in 2-months and Brent rose $1.50, or 2.5% to $62.68 per barrel.

European markets climbed 1.2%-2.6%.

For the week, US indices gained 1.5%-1.6%, extending the winning streak to fourth straight week. In Europe, FTSE was down 1.2%, DAX was flat while CAC gained 0.3%. In Asia, Nikkei and Shanghai gained 0.2% each and Hang Seng was up 0.3%.

AT HOME

It was yet another day of consolidation as benchmark indices ended marginally higher after a rangebound but choppy session. Sensex settled at 36386, up 12 points while Nifty added 2 points to finish at 10906. BSE mid-cap and small-cap indices however underperformed significantly, giving away 0.8% and 0.7% respectively. BSE Energy index soared 2.7%, becoming top gainer among the sectoral indices, followed by 0.4% higher Oil & Gas index. Telecom and Healthcare indices were the top losers, down 3.8% and 2% respectively.

FIIs net sold stocks and index futures worth Rs 125 cr and 398 cr respectively but net bought stock futures worth Rs 538 cr. DIIs were net sellers to the tune of Rs 1 cr.

Rupee depreciated 13 paise to end at 71.18/$.

For the week, Sensex and Nifty gained 1% each.

Sun Pharma nosedived after a media report of a new whistle-blower complaint sent to SEBI alleging corporate governance lapses.

OUTLOOK

Today morning, Asian markets are trading with gains of upto 0.4% and SGX Nifty is suggesting about 25 points higher start for our market.

Readers would recall that we have been working with target of 10985 after 10870 level was achieved.

Nifty, on Friday, closed at 10906 and is set to open higher today.

10985, the top made in December, continues to be immediate upside target/resistance to eye.

10800 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

Kotak Mahindra Bank will report its quarterly earnings today.