12294 IS NEXT UPSIDE TARGET; 12100 IMMEDIATE SUPPORT

12294 IS NEXT UPSIDE TARGET; 12100 IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.7%-0.8% to hit fresh record highs as tensions between Iran and the U.S. eased for the time being.

Apple shares jumped 2.1% to a record high after Chinese government data showed that iPhone sales rose 18% in December in the country. AMD and Goldman Sachs climbed more than 2% after brokerage upgrade.

The Chinese Commerce Ministry said that Vice Premier Liu He will fly to Washington to sign Phase one US-China trade deal.

Weekly jobless claims fell by 9,000 to 214,000 from 223,000, the expected figure being 220,000. On Wednesday, ADP and Moody’s Analytics said U.S. private payrolls increased by 202,000 in December, topping a estimate of 150,000.

Brent crude futures fell 3 cents at $65.41 a barrel. West Texas Intermediate slipped 5 cents to $59.56.

In Europe, DAX soared 1.3% while FTSE and CAC rose 0.3% and 0.2% respectively. German factory output posted its biggest increase in a year and a half in November, rising 1.1% on the month to beat expectations.

AT HOME

Sensex and Nifty soared 1.6% each, registering their biggest gain in three months. Sensex settled at 41452, up 634 points while Nifty added 190 points to finish at 12215. BSE mid-cap and small-cap indices gained 1.5% each. Except 0.1% lower IT index, all the BSE sectoral indices ended in green with Realty and Auto indices leading the tally, up 2.8% and 2.6% respectively.

FIIs net sold stocks worth Rs 431 cr but net bought index futures and stock futures worth Rs 1445 cr and 189 cr respectively. DIIs were net buyers to the tune of Rs 419 cr.

Rupee appreciated 48 paise to end at 71.21/$.

OUTLOOK

Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 12152, the top made Tuesday, continued to be immediate hurdle, upon crossover of which 12294, the top made in December, would be the next target/resistance to eye.

Nifty crossed 12152 hurdle at the open itself and surged all the way to 12224 before closing at 12215.

12294, the top made in December, continues to be next target/resistance. Once that is taken out, 12400, where an upward sloping trendline adjoining tops made in August 2018 and June 2019 is placed, would be the next target/resistance to eye.

Immediate support on the hourly chart is placed at 12100, with the stop-loss of which, trading longs should be held on to.

IIP for November will be out today and is expected to show a growth of 0.93%, as against degrowth of 3.8% in October.

Infosys will kickstart Q3 earning season today and is expected to show a dollar revenue growth of 1.5% q-o-q and constant currency revenue growth of 1%. Margins are expected to improve on the back of rupee depreciation.