10985 IS THE NEXT UPSIDE TARGET; 10800 IMMEDIATE SUPPORT

10985 IS THE NEXT UPSIDE TARGET; 10800 IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.6%-1.7%, with Nasdaq on the top.

Netflix jumped 6.5% after a report said the company would hike prices to its monthly memberships by 13 to 18 percent. J P Morgan fell after reporting lower-than-expected profit for the fourth quarter. Stock however rose nearly 1%, erasing earlier losses. Wells Fargo posted earnings that topped expectations but sales fell short of estimates.

US crude rose 3.2% to $52.11 a barrel and Brent added 2.4% to reach $60.38, supported by cuts by OPEC and Russia, signs of lower U.S. oil stocks and possible fiscal stimulus in China.

In the UK, Prime Minister Theresa May's plan on how Britain should exit the European Union was overwhelmingly voted down by 432 to 202 votes in the House of Commons, which is the U.K.'s lower house of parliament. May now faces no-confidence motion moved by the oppot tomorrow. May later said that she would now make a statement to the Commons on Monday 21 where she is due to present a "plan B" for the exit agreement.

European markets, except a flat Italy, gained 0.3%-0.6%. Economic output in Germany increased 1.5% in 2018, compared to 2.2% in 2017 and marking the weakest rate in five years.

AT HOME

Benchmark indices soared a percent and third, registering biggest daily gain in more than a month and broke three-day losing streak. Sensex settled at 36318, up 464 points while Nifty added 149 points to finish at 10886. BSE mid-cap and small-cap indices gained 0.6% and 0.7% respectively. All the BSE sectoral indices ended in green, with IT and Teck indices leading the tally, up 3% and 2.8% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 160 cr, 1153 cr and 595 cr respectively. DIIs were net buyers to the tune of Rs 417 cr.

Rupee depreciated 10 paise to end at 71.03/$.

ZEE Entertainment was a beat on all counts. Total revenue rose 2150 17.9% to Rs 2150 cr. Ad revenue rose 22% while subscription revenue surged 28%. EBIDTA was up 27% at Rs 754 cr and margin rose 250 bps to 34.8%. Net profit climbed 50% to Rs 562 cr.

OUTLOOK

Today morning, Shanghai is flat while Nikkei and Hang Seng are down 1% and 0.5% respectively. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that "10800 is the immediate hurdle on the hourly chart above which 10870, the top made last week, would be the bigger hurdle to eye".

Nifty crossed 10800 in first half an hour itself and surged all the way to 10896 before closing at 10886, crossing even 10870 hurdle decisively.

10985, the top made on 19th December, is now the next upside target/resistance to eye.

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