NIFTY REBOUNDS AFTER ACHIEVING 11930 TARGET; 12115 IS THE IMMEDIATE HURDLE

NIFTY REBOUNDS AFTER ACHIEVING 11930 TARGET; 12115 IS THE IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 fell 0.6% and 0.3% respectively while Nasdaq ended flat, weighing a stark warning from tech giant Apple.

Apple fell 1.8% after cautioning that it does not expect to meet its quarterly revenue forecast, citing slowed production and weakened demand in China as a result of the coronavirus outbreak.

The benchmark 10-year U.S. Treasury yield fell to around 1.55%. Gold futures climbed more than 1% to settle at $1,603.60 per ounce.

Brent crude rose 8 cents to $57.75 per barrel while WTI futures settled unchanged at $52.05.

European markets fell 0.5%-0.8%. On the data front, U.K. employment jumped again in the final quarter of 2019. Germany's ZEW survey showed economic sentiment fell to 8.7 from 26.7 in January, against  expectations of a 21.5 reading.

AT HOME

After falling more than a percent, benchmark indices saw a smart rebound in late noon trade to end lower by just 0.4%. This was however the fourth straight day of fall for both the indices. Sensex settled at 40894, down 161 points while Nifty lost 53 points to finish at 11992. BSE mid-cap and small-cap indices fell 0.5% and 0.4% respectively.  BSE Telecom index tumbled 4.2%, becoming top loser among the sectoral indices, followed by 1.2% lower Metal index. IT and Oil & Gas indices were the top gainers, up 0.5% and 0.2% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 74 cr, 460 cr and 1101 cr respectively. DIIs were net sellers to the tune of Rs 309 cr.

Rupee depreciated 22 paise to end at 71.52/$.

Shree Cements will replace Yes Bank in Nifty from March 27.

OUTLOOK

China's National Health Commission said there was a total of 74185 confirmed cases as of Feb 18 and 2004 people have died so far.

Today morning, Shanghai is down 0.3% while Nikkei and Hang Seng are up 0.4% and 0.2% respectively. SGX Nifty is suggesting about 40 points higher start for our market.

Readers would recall that we had turned our view on Nifty negative after 12100 support was breached and had given targets of 11930 and 11825 after 11990 target was achieved.

Yesterday, Nifty, after achieving 11930 target, fell further to 11908, from where it rebounded to end at 11992 and is set to open above 12000 today.

12115 is the immediate hurdle on the hourly chart, a crossover of which is required for a fresh upmove. If that happens, 12247, the top made last week, would be the next target/resistance to eye.

11908, the low made yesterday, is the immediate support, upon breach of which 11825 would be the next support.