10987 CONTINUES TO BE IMMEDIATE HURDLE; 10813 NEAREST SUPPORT

10987 CONTINUES TO BE IMMEDIATE HURDLE; 10813 NEAREST SUPPORT

WORLD MARKETS

Dow and S & P 500 gained 0.7% each while Nasdaq climbed 1.2%. Tech shares led the gains with Facebook, Apple, Netflix and Google-parent Alphabet all closing at least 2% higher.

US crude fell 1.3% to $54.56 a barrel after data showed new orders for U.S.-made goods unexpectedly fell in November, with sharp declines in demand for machinery and electrical equipment. Brent fell 24 cents to $62.51.

European markets ended mixed with modest changes. U.K. construction PMI fell to 50.6 in January, down from 52.8 in December and its lowest since March 2018.

Alphabet shares fell 2% after hours following the company's release of quarterly earnings.

AT HOME

After falling about seven tenth of a percent, benchmark indices rebounded nearly a percent from the bottom of the day in late noon trade to end with modest gains, extending the winning streak to third consecutive day. Sensex settled at 36582, up 113 points while Nifty added 18 points to finish at 10912. BSE mid-cap and small-cap indices however fell 0.8% and 1.2% respectively. BSE Energy index soared 2.2%, becoming top gainer among the sectoral indices, followed by 0.8% higher Consumer Durable index. Utilities and Power indices were the top losers, down 2.3% and 2.1% respectively.

FIIs net sold stocks and index futures worth Rs 112 cr and 185 cr respectively but net bought stock futures worth Rs 111 cr. DIIs were net sellers to the tune of Rs 65 cr.

Rupee depreciated 56 paise to end at 71.80/$.

Fiscal deficit for the April-December period hit 7.01 lk cr, 112% of the full year target of 6.2 lk cr. fiscal deficit target. Tax receipts stood at 9.36 lk cr, 60% of the full year's target of 14.84 lk cr.

OUTLOOK

Most of the Asian markets are shut today due to Lunar New Year holiday. Nikkei is marginally lower while SGX Nifty is suggesting a marginally higher start for our market.

After nearly achieving the upside target of 10987 target on the interim budget day, Nifty retreated to close at 10893 and gained further to end at 10912 in yesterday's session.

10987 continues to be important immediate hurdle to eye, a decisive crossover of which is required for a fresh upmove. If that happens, 11090, the 61.8% retracement level of the entire 11760-10004 fall, would be the next upside target.

10813, the low made on the budget day, from where Nifty rebounded from yesterday as well, is the immediate support to eye below which 10715 would be the next support.

Tech Mahindra, GAIL and HPCL will report their quarterly earnings today.