14550 IS THE IMMEDIATE HURDLE; 14222 IMMEDIATE SUPPORT

 

14550 IS THE IMMEDIATE HURDLE; 14222 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices rose 0.4%-1.5% with the Nasdaq on the top on the back of comments from U.S. Treasury Secretary nominee Janet Yellen ahead of Biden’s inauguration on Wednesday. Big technology stocks rebounded from last week’s sharp losses.

 

Janet Yellen, President-elect Joe Biden’s designated nominee for Treasury Secretary and a former chair of the Federal Reserve, appearing before the Senate Finance Committee, urged lawmakers to “act big” on the next coronavirus relief package, adding that the benefits outweigh the costs of a higher debt burden.

 

Biden will succeed President Donald Trump as the 46th president of the United States today. Markets will be on the lookout for any further information about his $1.9 trillion Covid-19 relief plan unveiled last week.

 

In Corporate earnings, Goldman Sachs beat while Bank of American missed expectations.

 

Brent crude futures rose $1.15, or 2.1%, to settle at $55.90 per barrel, while WTI crude settled 62 cents, or 1.2%, higher at $52.98 per barrel.

 

Dollar index dropped 0.3% to 90.531. Spot gold rose 0.2% to $1,840.38 per ounce. The yield on the benchmark 10-year Treasury note was flat at 1.090%.

 

Netflix soared 10% in extended trading after the company reported strong subscriber growth and said it’s considering share buybacks.

 

European markets fell 0.1%-0.3%. Germany's ZEW economic sentiment index rose to 61.8 in January, up from 55.0 in the previous month and beating estimate of 60.

 

AT HOME

 

Bulls came back with a vengeance as benchmark indices soared 1.7% each, recouping three-fourth of the losses suffered in previous two sessions put together. Sensex settled at 49398, up 834 points while Nifty added 240 points to finish at 14521. Nifty mid-cap and small-cap indices surged 2.3% and 1.7% respectively. All the BSE sectoral indices ended in green, with Realty and Metal indices leading the tally, up 4% and 3% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 258 cr, 509 cr and 977 cr respectively. DIIs were net sellers to the tune of Rs 199 cr.

 

Rupee appreciated 11 paise to end at 73.16/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.6% and 0.1% respectively while Nikkei is down 0.4%.  SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 14490 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

Nifty crossed 14490 hurdle and surged all the way to 14546 before closing at 14521. The benchmark is set to open near 14450 today.

 

14546, the top made yesterday, also coincided with a trendline resistance adjoining recent tops on the hourly chart. A crossover of this hurdle is required for a fresh upmove. If that happens, 14653, the top made last week, would be the next target/resistance to eye.

 

14222, the bottom made Monday, is now the important immediate support to eye.

 

Bajaj Finance and Bajaj Finserve will report their quarterly earnings today.