11000 IS NEXT SUPPORT; 11440 IMMEDIATE HURDLE

 

11000 IS NEXT SUPPORT; 11440 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices gained 0.5%-1.7% as tech stocks, led by Amzon, rebounded, even as a likely delay in new fiscal stimulus by Congress and an increase in the number of coronavirus cases dampened hopes of a faster economic recovery.

 

In a prepared testimony, Fed Chair Powell said central bank remans committed to supporting the economy through its tools "for as long as it takes." He also noted that "many economic indicators show market improvement," though the path forward "continues to be highly uncertain."

 

Brent crude futures rose 27 cents or 0.6% to $41.71 a barrel and WTI crude futures rose 0.7% to $39.60 a barrel.

 

In Europe, FTSE and DAX rose 0.4% each while CAC eased 0.4%. UK Prime Minister Boris Johnson reversed the lifting of some lockdown measures in England.

 

AT HOME

 

Benchmark indices fell eight tenth of a percent, extending the losing streak to fourth consecutive day. Sensex settled at 37734, down 300 points. Nifty lost 97 points to finish at 11153,  its lowest in 1-1/2 month. BSE mid-cap and small-cap indices fell 1.7% and 1.6% respectively. BSE Industrials and Capital Goods indices were the top losers among the sectoral indices, down 2.5% each while IT and Teck indices were the top gainers, up 0.9% and 0.7% respectively.

 

FIIs net sold stocks and index futures worth Rs 2072 cr and 696 cr respectively but net bought stock futures worth Rs 840 cr. DIIs were net buyers to the tune of Rs 879 cr.

 

Rupee depreciated 20 paise to end at 73.58/$.

 

Adani Ports fell after Adani Gobal PTE, the Singapore-based global arm of the Adani Group, featured in Suspicious Activity Reports (SARs) filed by FinCEN, the top US financial watchdog.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are little changed while Nikkei, which has opened after holidays, is down 0.7%. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 11218-11185 was the next important support zone.

 

Nifty broke this support zone and plunged all the way to 11084 before closing at 11153.

 

11000, where 34-month moving average is placed, is the next support to eye.

 

11440, where 20-DMA is placed, would work as immediate hurdle.