12272 ABOVE 12172; 11990 IS THE IMMEDIATE SUPPORT

12272 ABOVE 12172; 11990 IS THE IMMEDIATE SUPPORT

WORLD MARKETS

Dow ended flat while S & P 500  and Nasdaq rose 0.2% and 0.1% respectively  after digesting testimony from the Fed Chair Powell.

Powell said the central bank is “closely monitoring” the situation surrounding the ongoing coronavirus outbreak and its potential impact to China and the global economy, though he noted that it is “too early to say” how the disease could hit the U.S. economy.

China’s National Health Commission said the death toll had risen to 1,016 people with 42,638 confirmed cases. However, data from Johns Hopkins University showed the number of new confirmed cases was its lowest since late January, increasing optimism around China’s efforts to contain the outbreak.

Brent crude gained 78 cents, or 1.4%, to trade at $54.05 per barrel while WTI gained 37 cents, or 0.75%, to settle at $49.94.

European markets gained 0.6%-1%. The first estimate of U.K. fourth-quarter showed that GDP was flat quarter-on-quarter in the last three months of 2019.

AT HOME

After rising more than a percent in the initial trade, benchmark indices gave away nearly half of the gains through the session to end higher by six tenth of a percent. Sensex settled at 41216, up 236 points while Nifty added 76 points to finish at 12107. BSE mid-cap index rose 0.4% but small-cap index fell 0.2%. Except 0.2% and 0.1% lower FMCG and Telecom indices respectively, all the BSE sectoral indices ended in green with Utilities and Power indices leading the tally, up 1.7% and 1.5% respectively.

FIIs net sold stocks worth Rs 209 cr but net bought index futures and stock futures worth Rs 1404 cr and 579 cr respectively. DIIs were net buyers to the tune of Rs 345 cr.

Rupee appreciated 7 paise to end at 71.23/$.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.4% and 0.2% respectively while Shanghai is off 0.1%. SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had reiterated the view that 12160, the top made last week, continued to be important immediate hurdle while 11925 continued to be immediate support.

Nifty touched a high of 12172 in the initial trade but could not sustain there and slipped to end at 12107.

12172, the top made yesterday, which roughly coincided with the 12160 resistance mentioned by us, is the immediate hurdle to eye, a crossover of which would confirm a buy on the hourly chart and would pave the way for fresh upmove. If that happens, 12272, the top made on 24th January, would be the next target.

On the way down, 11990, the bottom made on Monday, would now act as immediate support.

Retail inflation for January will be out today and is expected to show a print of 7.28% as against 7.35% in December. Industrial Production for December will also be released and expected growth here is 1.94%, up from 1.8% in November.

Hindalco will report its quarterly earnings today.