NIFTY SET TO CHALLENGE 11695 HURDLE AGAIN; 11490 CONTINUES TO BE NEAREST SUPPORT

NIFTY SET TO CHALLENGE 11695 HURDLE AGAIN; 11490 CONTINUES TO BE NEAREST SUPPORT

WORLD MARKETS

US indices climbed 0.5%-1%, with the S & P 500 hitting a record high as markets cheered strong earnings and progress on U.S.-China trade.

U.S. and Chinese officials said they were “close to finalizing” some parts of a trade agreement. Chinese state-run news agency Xinhua also pointed to progress being made on trade.

Microsoft rose 2.5% on news the company won a $10 billion cloud contract from the Defense Department. AT&T gained more than 4% after announcing a three-year plan that includes the addition of two new board members and the sale of up to $10 billion worth of non-core businesses in 2020. Alphabet climbed nearly 2% ahead of earnings.

Brent futures fell 40 cents, or 0.6% to settle at $61.62, while WTI fell 85 cents, or 1.5%, to $55.81 a barrel, breaking four day winning streak on the back of weak Chinese industrial data.

European markets rose upto 0.4%.

AT HOME

Friday was yet another day of consolidation as benchmark indices ended little changed after wild intraday moves. Sensex added 37 points to settle at 39058 while Nifty finished at 11583, up 1 point. BSE mid-cap index ended falt while small-cap index fell 0.4%. BSE Bankex and IT indices gained 1.1% and 1% respectively, becoming top gainers among the sectoral indices while Consumer Durables and Telecom indices tumbled 1.8% and 1.7% respectively, becoming top losers.

On Muhurat trading on Sunday, Sensex and Nifty gained 0.5% and 0.4% respectively, extending the winning streak to second straight day. Sensex settled at 39250, up 192 points while Nifty added 43 points to finish at 11627. BSE mid-cap and small-cap indices climbed 0.7% and 1.2% respectively.

For the week, Sensex and Nifty fell 0.1% and 0.3% respectively.

Tata Motors soared 18% after reporting better-than-expected earnings due to rebound in JLR performance. JLR EBIDTA margin, at 13.8%, hit 16-quarter high. JLR reported PBT of 621 cr as against loss of Rs Rs 823 cr.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.5% and 0.1% respectively while Shanghai is off 0.3%. SGX Nifty is suggesting about 50 points higher start for our market.

After achieving 11695 target on 22nd October, Nifty has been in a consolidation mode over past five sessions. We have been mentioning through this phase that 11490 is the immediate support, with the stop-loss of which, trading longs can be held on to. The benchmark, after testing 11490 support on Friday, has rebounded to 11627 and is set to open above 11650 today.

11695 continues to be immediate hurdle, a decisive crossover of which is required for a fresh upmove. If that happens, 11772-11798, the gap created by a gap down opening on 8th July, would be the next target.

11490 continues to be immediate support, with the stop-loss of which, existing longs can be held on to.

Bharti Airtel will report its quarterly earnings today.