11905 CONTINUES TO BE IMMEDIATE HURDLE; 11661 IS THE SUPPORT

 

11905 CONTINUES TO BE IMMEDIATE HURDLE; 11661 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.8% and 0.3% respectively while Nasdaq rose 0.6% as technology stocks rose while stocks dependent on the economy reopening declined due to rise in covid cases.

 

Microsoft reported better-than-expected earnings and revenue as sales from its cloud business grew sharply.

 

Brent crude rose 58 cents, or 1.4%, to $41.03 per barrel while U.S. oil gained $1.01, or 2.6%, to settle at $39.57 per barrel.

 

European markets fell 0.9%-2.1% with Spain leading the losses. Owing to rising covid cases, U.K. is set to extend its highest category alert to more cities and German Chancellor Angela Merkel has warned that Germany is on the verge of losing control of the virus.

 

AT HOME

 

Benchmark indices climbed a percent, recouping three fourth of the losses incurred yesterday. Sensex settled at 40522, up 376 points while Nifty added 121 points to finish at 11889. BSE mid-cap and small-cap indices gained 1.6% and 0.6% respectively. BSE Bankex surged 3.5%, becoming top gainer among the sectoral indices, followed by 2% higher Power and Capital Goods indices. IT and Teck indices were the top losers, down 1.5% and 1.2% respectively.

 

FIIs net bought stocks and stock futures worth Rs 3515 cr and 2442 cr respectively but net sold index futures worth Rs 1116 cr. DIIs were net sellers to the tune of Rs 1571 cr.

 

Rupee appreciated 14 paise to end at 73.70/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-0.6% and SGX Nifty is suggesting around 35 points lower start for our market.

 

In yesterday's report we had said that 11661, the bottom made on 15th October, was the next important support to eye while 11905 was the immediate hurdle on the hourly chart.

 

Nifty surged to touch a high of 11899 before closing at 11889 and is set to open near 11850 today.

 

11905 continues to be immediate hurdle, upon crossover of which, 12025, the top made on 15th October, would be the next resistance to eye.

 

11661, the bottom made on 15th October, continues to be the support to eye.

 

Axis Bank, L & T, Hero Motocorp, Titan and Dr Reddy will report their quarterly earnings today.