12088 IS THE IMMEDIATE SUPPORT; 12265 IMMEDIATE HURDLE

12088 IS THE IMMEDIATE SUPPORT; 12265 IMMEDIATE HURDLE

WORLD MARKETS

Dow fell 0.1% while S & P 500 and Nasdaq rose 0.1% and 0.2% respectively, recovering most of their losses from earlier in the session, after the World Health Organization (WHO) declined for a second day to formally designate a new coronavirus as a global health emergency.

The WHO said it was a “bit too early to consider this event is a public health emergency of international concern.”

Meanwhile, NBCUniversal-parent Comcast and Travelers both reported better-than-expected quarterly figures.

Brent crude futures lost $1.20, or 1.9%, to trade at $62.00 per barrel while WTI futures fell $1.15, or 2%, to settle at $55.59 a barrel. 

European markets fell 0.6%-0.9%.The ECB held its interest rates steady. ECB President Christine Lagarde’s "risks were still tiled to the downside” on the economic outlook for the euro zone weighed on the sentiment.

AT HOME

Sensex and Nifty gained 0.6% each, snapping four day and three-day losing streak respectively. Sensex added 271 points to settle at 41386 while Nifty finished at 12179, up 73 points. BSE mid-cap and small-cap indices climbed 1% and 0.9% respectively. All the BSE sectoral indices ended in green with Capital Goods and Realty indices leading the tally, up 2.3% and 2% respectively.

FIIs net bought stocks worth Rs 1352 cr but net sold index futures and stock futures worth Rs 417 cr and 66 cr respectively. DIIs were net sellers to the tune of Rs 985 cr.

Rupee depreciated 7 paise to end at 71.26/$.

OUTLOOK

Today Shanghai is shut while Nikkei is little changed and Hang Seng is off 0.2%. SGX Nifty is suggesting about 25 points lower start for our market.

Readers would recall that we had turned our view on Nifty negative below 12278 and had given downside targets of 12150 and 12095.

After achieving 12095 target on Wednesday, Nifty yesterday rebounded to close at 12180 and is set to open near 12150 today.

12088, the low made on Wednesday, continues to be immediate support. If that gets violated 12000, where an upward sloping trendline adjoining recent bottoms on the daily chart is placed, would be the next support.

12265 continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 12430, the top made on Monday, would be the next major hurdle.

Ultratech Cement, JSW Steel and BoB will report their quarterly earnings today.