NIFTY REBOUNDS FROM MAJOR SUPPORTS

NIFTY REBOUNDS FROM MAJOR SUPPORTS

WORLD MARKETS

Dow and S & P 500 rose 0.5% and 0.7% respectively while Nasdaq soared 1.3%, recovering some of the losses from the previous session’s steep sell-off.

Indices reached their session highs after ISM manufacturing index showed activity in the sector expanded as against the expectation of a contraction. However, they gave back some of day’s gains after Carnival confirmed one of its guests tested positive for coronavirus six days after leaving one of its ships.

The death toll in China from the coronavirus reached 361 on Sunday, surpassing that of the SARS virus which lasted from 2002 to 2003, while a first death outside of China was reported in the Philippines.

WTI crude fell 2.8%, or $1.45 per barrel, to $50.11 per barrel while Brent crude dropped 3.9%, or $2.21, to $54.41, both hitting their lowest levels in more than a  year.

European markets gained 0.4%-0.6%. The U.K. exited the EU at 11 p.m. on Friday and has now started an 11-month transition period in which it hopes to strike a trade deal with the bloc. Euro zone manufacturing PMI reading came in at a nine-month high of 47.9.

AT HOME

Sensex and Nifty gained 0.3% and 0.4% respectively, rebounding from steep losses suffered on Saturday and breaking 3-day losing streak. Sesnex settled at 39872, up 136 points while Nifty added 46 points to finish at 11707. BSE mid-cap index climbed 1.2% while small-cap index rose 0.1%. Except 1.8% and 1.3% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Consumer Discretionary Goods & Services and Basic Materials indices leading the tally, up 1.9% and 1.5% respectively.

FIIs net sold stocks worth Rs 1200 cr but net bought index futures and stock futures worth Rs 406 cr and 784 cr respectively. DIIs were net buyers to the tune of Rs 1287 cr.

Rupee appreciated 2 paise to end at 71.32/$.

India's IHS Markit Manufacturing PMI rose to 55.3 in January from 52.7 in December, its highest level in nearly eight years.

TVS Motor January sales fell 16.9% y-o-y to 2.34 lakh units. Ashok Leyland sales fell 40% to 11850 units.

OUTLOOK

Today morning, Shanghai is down half a percent, Nikkei is little changed and Hang Seng is up 0.7%. SGX Nifty is suggesting about 40 points higher start for our market.

In yesterday's report we had said that 11633, the low made on Saturday, was the immediate support, upon breach of which, 11550, the 50% retracement level of the entire 10670-12430 upmove would be the next support to eye.

Nifty, after touching a low of 11614, rebounded to end at 11707 and is set to open near 11750 today.

11550, the 50% retracement level of the entire 10670-12430 upmove, continues to be next support to eye.

On the way up, 12017, the top made on the budget day, continues to be immediate hurdle.

Bharti Airtel and Titan will report their quarterly earnings today.