NIFTY NEARS 12272 TARGET; 12100 IS THE IMMEDIATE SUPPORT

NIFTY NEARS 12272 TARGET; 12100 IS THE IMMEDIATE SUPPORT

WORLD MARKETS

Dow and Nasdaq climbed 0.9% each while S & P 500 rose 0.6% to hit record highs.

China’s National Health Commission reported 97 additional deaths and 2015 new cases of coronavirus with total confirmed cases passing 44,000. However, the pace of new reported cases appears to be slowing down as they hit their lowest levels since late January

WTI crude climbed 2.46%, or $1.23, to $51.17 per barrel while Brent crude rallied 3.3%, or $1.78, to $55.79 as traders eyed deeper production cuts from OPEC, and as China reported the lowest number of new coronavirus cases since the end of January, easing concerns about a drop-off in demand for oil.

European markets rose 0.5%-0.9%. Euro zone manufacturing output plunged more than expected in December, falling 2.1% month-on-month against the expected 1.6% slide.

AT HOME

Benchmark indices climbed 0.8% each, extending the winning streak to second straight day and closing at the highest level since 24th January, marking a 3-week high. Sensex settled at 41566, up 350 points while Nifty added 93 points to finish at 12201. BSE mid-cap and small-cap indices however fell 0.3% and 0.2% respectively. BSE FMCG index surged 1.9%, becoming top gainer among the sectoral indices, followed by 0.8% higher Bankex. Power and Realty indices were the top losers, down 1% and 0.8% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 49 cr, 1145 cr and 444 cr respectively. DIIs were net buyers to the tune of Rs 339 cr.

Rupee depreciated 12 paise to end at 71.35/$.

January CPI hit a 6-year high of 7.59% as food prices remain elevated and fuel & light inflation rose. December IIP contracted 0.3%, weighed by decline in manufacturing, capital goods and consumer durables.

OUTLOOK

China’s Hubei province has reported a spike in the number of new coronavirus cases, after the province said it started to include “clinically diagnosed” cases in its tally.

Asian markets are trading flat to modestly higher and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that upon crossover of 12172, 12272, the top made on 24th January, would be the next target.

Nifty crossed 12172 hurdle and surged all the way to 12231 before closing at 12201.

12272, the top made on 24th January, continues to be next upside target. Above 12272, 12430, the top made in January, would be the next major target/resistance to eye.

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