12400 IS THE NEXT UPSIDE TARGET; 12100 IS IMMEDIATE SUPPORT

12400 IS THE NEXT UPSIDE TARGET; 12100 IS IMMEDIATE SUPPORT

WORLD MARKETS

Dow slipped half a percent while S & P 500 and Nasdaq fell 0.3% each on Friday after digesting weaker-than-expected jobs data.

The U.S. economy added 145,000 jobs in December, lower than the expected figure of 160000. Wage growth,at 2.9% y-o-y, was also lower than expected gain of 3.1%.

US announced new sanctions on Iran’s metal exports and eight senior Iranian officials.

Brent crude fell 45 cents to $64.92, while WTI slipped 52 cents to settle at $59.04.

European markets ended flat to marginally lower. U.K. lawmakers approved legislation that will allow the country to exit the EU on Jan. 31 with a withdrawal deal.

Chinese Vice Premier Liu He will visit Washington on Jan. 13-15 and is due to sign an initial “phase one” trade deal with the U.S. on Wednesday. The Chinese yuan jumped to a five-month high last week in anticipation of the signing.

For the week, US indices gained 0.7%-1.8%. Oil tumbled nearly 6% for the week.

AT HOME

After rising about eight tenth of a percent, benchmark indices gave away half of the gains in second half to end higher by four tenth of a percent, extending the winning streak to second straight day. Sensex settled at 41599, up 147 points while Nifty added 40 points to finish at 12256. BSE mid-cap and small-cap indices too rose 0.4% each. Except 0.6% and 0.2% lower Telecom and Consumer Durables indices respectively, all the BSE sectoral indices ended in green with Realty and Metal indices leading the tally, up 1.9% and 1.2% respectively.

FIIs net bought stocks and index futures worth Rs 578 cr and 308 cr respectively but net sold stock futures worth Rs 405 cr. DIIs were net sellers to the tune of Rs 252 cr.

Rupee appreciated 27 paise to end at 70.93/$.

For the week, Sensex and Nifty gained 0.2% and 0.3% respectively, breaking two-week losing streak.

Industrial production bounced back in November by growing 1.8% v/s 3.8% drop in October.

Infosys' Q3 earnings largely met expectation. The company raised its FY20 revenue growth guidance to 10-10.5% from 9-10% and maintained EBIT margin guidance at 21-23%. Also, the audit committee give a clean chit to the company in the recent whistle blower issue.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.5% and 0.3% respectively while Shanghai is off 0.2%. SGX Nifty is suggesting about 35 points higher start for our market.

In Friday's report we had said that 12294, the top made in December, continued to be next target/resistance, upon crossover of which, 12400, where an upward sloping trendline adjoining tops made in August 2018 and June 2019 was placed, would be the next target/resistance to eye.

Nifty, after touching a high of 12311, eased to end at 12256 and is set to open near 12300 today.

12400, where an upward sloping trendline adjoining tops made in August 2018 and June 2019 is placed, continues to be the next target/resistance to eye.

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

CPI for December would be released today and is expected to show a print of 6.5% vs 5.54% in November. Core CPI is expected at 3.7% as against 3.5%.