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.