12000 CONTINUES TO BE IMMEDIATE SUPPORT; 12165 IMMEDIATE HURDLE

12000 CONTINUES TO BE IMMEDIATE SUPPORT; 12165  IMMEDIATE HURDLE

WORLD MARKETS

US indices rose 0.7%-1.4%, recovered from their biggest sell-off in more than three months amid coronavirus fears.

Pfizer and 3M posted disappointing quarterly earnings, sending their shares down 5.1% and 5.7%, respectively. Harley-Davidson’s earnings per share beat expectations, but a disappointing revenue figure made the stock fall 3%.

On the data front, U.S. consumer confidence rose more than expected in January as sentiment around the labor market improved.

After market hours, Apple posted earnings and iPhone sales that smashed expectations.

Brent crude futures rose 13 cents, or 0.2%, to $59.43 a barrel, while U.S. WTI crude gained 34 cents, or 0.6%, to settle at $53.48 per barrel.

Main European markets gained 0.9%-1.1%.

AT HOME

Benchmark indices fell half a percent, extending the losing streak to second straight day and closing at the lowest level in 3-weeks. Sensex settled at 40966, down 188 points while Nifty lost 63 points to finish at 12055. BSE mid-cap and small-cap indices fell 0.5% and 0.2% respectively. BSE Telecom index tumbled 4.1%, becoming top loser among the sectoral indices, followed by 2.6% lower Metal index. Oil & Gas , IT and Finance indices were the only gainers, rising 0.2% each.

FIIs net sold stocks, index futures and stock futures worth Rs 1358 cr, 541 cr and 1011 cr respectively. DIIs were net buyers to the tune of Rs 712 cr.

Rupee appreciated 11 paise to end at 71.32/$.

Maruti's Q3 numbers came in below estimates. Revenue rose 5% y-o-y to Rs 20707 cr, EBITDA rose 9% to Rs 2103 cr, margin rose to 10.2% from 9.82% and net profit rose 5% to Rs 1565 cr. Realisation fell 5.7% to Rs 4.7 lakh/unit q-o-q.

OUTLOOK

Markets in China remain shut while Hong Kong, after Lunar New Year holidays, has opened today and is trading with cut of nearly 3%. Nikkei is up 0.3% and SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had said that 12088, the low made last week, was the next support below which, 12000, where an upward sloping trendline adjoining recent bottoms on the daily chart is placed, would be the next important support.

Nifty broke 12088 support and fell all the way to 12024 before closing at 12055.

12000, where an upward sloping trendline adjoining recent bottoms on the daily chart is placed, continues to be the next important support. Below 12000, 20-week moving average, placed around 11900, would be the next support.

Immediate hurdle on the hourly chart is placed around 12165, with the stop-loss of which, trading shorts can be held on to.

Bajaj Finance and Bajaj Finserve will report their quarterly earnings today.