14900 IS THE NEXT UPSIDE LEVEL TO EYE; 14320 CONTINUES TO BE IMMEDIATE SUPPORT

 

14900 IS THE NEXT UPSIDE LEVEL TO EYE; 14320 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Nasdaq and S & P 500 rose 0.4% and 0.2% respectively while Dow ended little changed as Intel surged to lead tech stocks higher and U.S. interest rates eased from their highest levels since March 2020.

 

10-year Treasury yield fell 6 bps to 1.081%, while that on the 30-year Treasury slipped 6 bps to 1.823%. The decline came after Fed Vice Chairman said the central bank won’t raise rates until inflation reaches 2%.

 

December CPI showed a rise of 0.4%, matching expectations. Core CPI, less food and energy, edged up 0.1%, also in line with estimates.

 

House members voted to impeach President Donald Trump for a second time — making him the first U.S. president ever to be impeached twice

 

Brent crude fell 53 cents to $56.05 a barrel while WTI crude settled 30 cents, or 0.6% lower at $52.91 per barrel.

 

Dollar index rose 0.344% to 90.335. Spot gold was little changed at $1,854.84 an ounce.

 

China recorded the biggest daily jump in COVID cases in more than five months. Governments across Europe announced tighter and longer coronavirus lockdowns over fears about a fast-spreading variant first detected in Britain.

 

In Europe, except 0.1% lower FTSE, other markets rose 0.1%-0.4%.

 

AT HOME

 

After rising more than half a percent in the initial trade, benchmark indices plunged a percent and half but recouped half of the losses in late noon trade to end flat. Sensex settled at 49492, down 24 points while Nifty added 1 point to finish at 14564. Nifty mid-cap and small-cap indices fell 0.6% and 0.2% respectively. BSE Telecom and Auto indices rose 1.3% and 0.8% respectively, becoming top gainers among the sectoral indices while Consumer Durables and Healthcare indices were the top losers, down 1% and 0.8% respectively.

 

FIIs net bought stocks worth Rs 1879 cr but net sold index futures and stock futures worth Rs 976 cr and 1285 cr respectively. DIIs were net sellers to the tune of Rs 2370 cr.

 

Rupee appreciated 11 paise to end at 73.14/$.

 

Infosys and Wipro reported stellar set of earnings. Infosys reported constant currency revenue growth of 5.3% q-o-q, which is the best Q3 sequential growth in 8 years. Margins stood at 25.4%. The company raised constant currency revenue growth guidance to 4.5-5% and margin guidance to 24-24.5%.

 

Wipro reported dollar revenue growth of 3.9% which is best in 36 quarters. Margins, at 21.7%, are best in last 22 quarters. Q4 revenue growth guidance was strong at 1.5-3.5%.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.2% and 0.2% respectively while Shanghai is down 0.4%. SGX Nifty is suggesting a flattish start for our market.

 

Readers would recall that we have been bullish on Nifty after 13650 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

In yesterday's report we had said that 14625 continued to be next upside target, upon crossover of which, 14900 would be the next level to eye. We had also advised trailing stop-loss to 14320.

 

Nifty, after touching a high of 14653 in the initial trade, slipped to 14435 but rebounded from there to end at 14565.

 

14900, around which an upward sloping trendline adjoining tops made in 2010 and 2015 is placed, is the next major target as well as resistance to eye.

 

14320 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.