12060, 11990 ARE SUPPORTS; 12272 IS THE HURDLE

12060, 11990 ARE SUPPORTS; 12272 IS THE HURDLE

WORLD MARKETS

Dow ended marginally in the red while S & P 500 and Nasdaq rose 0.2% each after digesting the latest batch of consumer data and earnings.

Core retail sales, which exclude autos, gas, building materials and food services, were unchanged last month.

Nvidia and Expedia shares soared 7% and 11% respectively after  quarterly results beat analyst expectations.

China’s National Health Commission on Friday reported an additional 121 coronavirus deaths nationwide, with 5,090 new confirmed cases of the coronavirus.

Brent crude rose 89 cents or 1.6% to $57.23 per barrel while WTI gained 63 cents or 1.2% to $52.05

In Europe, FTSE and CAC fell 0.6% and 0.4% respectively while DAX ended flat.  Euro zone economic growth slowed as expected to 0.1% in the last quarter of 2019 while a figure for Germany showed its economy stagnated.

For the week, US indices rose 1%-2.2%, extending the winning streak to second-straight week. In Europe, DAX and CAC rose 1.7% and 0.7% respectively but FTSE fell 0.8%. In Asia, Hang Seng and Shanghai climbed 1.5% each but Nikkei eased 0.6%. Brent rose 4.4% and WTI climbed 3.8%, breaking 5-week losing streak.

AT HOME

After rising nearly half a percent in the initial trade, benchmark indices reversed these gains through the session to end lower by half a percent, extending the losing streak to second straight day. Sensex settled at 41257, down 202 points while Nifty lost 61 points to finish at 12113. BSE mid-cap and small-cap indices fell 0.8% and 0.4% respectively. BSE Utilities and Power indices tumbled 2.6% and 2.3% respectively, becoming top losers among the sectoral indices while Telecom index soared 2.5%, becoming top gainer, followed by 0.5% higher energy index.

FIIs net sold stocks and stock futures worth Rs 705 cr and 513 cr respectively but net bought index futures worth Rs 109 cr. DIIs were net buyers to the tune of Rs 220 cr.

Rupee depreciated 11 paise to end at 71.40/$.

The Supreme Court slammed telecom companies for not paying dues worth thousands of crores to the government and summoned their top executives to explain why they did not follow the court's order to pay up. The court asked the operators to deposit the amount by March 17.

January WPI inflation came in at 3.1%.

For the week, Sensex and Nifty gained 0.3% and 0.1% respectively, extending the rising streak to second straight week.

OUTLOOK

Data from Japan revealed that economy shrunk at an annualized pace of 6.3% in the December quarter. On-quarter, GDP fell 1.6%. Owing to this, Nikkei is down 0.6% while Shanghai and Hang Seng are up 0.9% and 0.5% respectively. SGX Nifty is suggesting a flattish start for our market.

In Friday's report we had said that 12100 continued to be immediate support while 12272, the top made on 24th January, continued to be immediate resistance.

Nifty, after touching a low of 12091, closed at 12113.

20-DMA, placed around 12060, is the next support, upon breach of which, 11990, the bottom made last week, would be the next important support.

12272 continues to be upside target/resistance to eye.