12246 ABOVE 12022; 11740 CONTINUES TO BE IMMEDIATE SUPPORT

 

12246 ABOVE 12022; 11740 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.6%-0.8%, extending the losing streak to second straight day, on uncertainty surrounding the aid talks.

 

Treasury Secretary Steven Mnuchin said reaching a coronavirus stimulus deal before the election would be difficult as Democrats and Republicans remain far apart on certain issues.

 

Quarterly results from Goldman Sachs and Bank of America’s topped market expectations. However, Wells Fargo and United Airlines fell short of estimates.

 

Brent crude futures rose 49 cents, or 1.2%, to $42.94 a barrel while WTI futures settled 84 cents, or 2.1%, higher at $41.04 per barrel.

 

In Europe, DAX rose 0.1% while FTSE and CAC fell 0.6% and 0.1% respectively.

 

AT HOME

 

After falling nearly a percent, Sensex and Nifty saw a sharp rebound in late noon trade to not only recoup all the losses but also end higher by 0.4% and 0.3% respectively. Nifty mid-cap index however fell 0.2%, extending the losing streak to fourth straight day, while small-cap index rose 0.3%, snapping five-day losing streak. BSE Finance index and Bankex climbed 1.7% and 1.6% respectively, becoming top gainers among the sectoral indices while Utilities and Power indices were the top losers, down 1.7% and 1.6% respectively.

 

FIIs net bought stocks worth Rs 822 cr but net sold index futures and stock futures worth Rs 714 cr and 630 cr respectively. DIIs were net sellers to the tune of Rs 1276 cr.

 

Rupee appreciated 5 paise to end at 73.30/$.

 

Supreme Court yesterday asked the central government to implement its decision to waive “interest on interest" at the earliest and adjourned the hearing to 2nd November.

 

Infosys reported strong Q2 results, announced record deal wins and also revised the full year guidance upwards. Dollar revenue grew 6.1% while constant currency growth stood at 4%. Margins improved 270 bps to 25.35%. The company upped FY21 revenue growth guidance to 2-3% from 0%-2% and operating margin guidance to 23-24% from 21%-23%.

 

India’s Wholesale Price Index (WPI) inflation for September rose to 1.32% from 0.16% in August.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-1% but SGX Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 12022, the top made Monday, continued to be immediate hurdle, while 11740 continues to be immediate support, with the stop-loss of which, long positions should be held on to.

 

Nifty, after touching a low of 11822, rebounded smartly to end at 11971.

 

12022, the top made Monday, continues to be immediate hurdle, upon crossover of which, 12246, the top made in February, would be the next target to eye.

 

11740 continues to be immediate support, with the stop-loss of which, long positions should be held on to.