15000 CONTINUES TO BE UPSIDE HURDLE; 14470-14336 IS THE SPPORT ZONE

 

15000 CONTINUES TO BE UPSIDE HURDLE; 14470-14336 IS THE SPPORT ZONE

 

WORLD MARKETS

 

Dow and S & P 500 inched up 0.1% while Nasdaq fell marginally by 2 points.

 

Democrats took their first votes in Congress on Tuesday night, to pass the proposed stimulus package without Republican support. The Senate voted in a 50-49 party line vote to advance a budget resolution. The House also voted in favor of going forward with the budget measure in a 216-210 vote.

 

Data from ADP showed a 174,000 increase in private jobs in January, beating expectations.

 

The yield on the benchmark U.S. 10-year Treasury note rose about 3 bps to 1.14%.

 

Brent crude rose 1.74% to $58.46 and US crude settled 1.7% higher at $55.69 per barrel, after EIA data showed U.S. crude oil stockpiles fell last week to 475.7 million barrels, their lowest since March.

 

eBay climbed more than 9% in the after-hours market after beating on both the top and bottom lines and issuing a better-than-expected forecast for the first quarter. PayPal gained nearly 3% while Qualcomm slipped more than 7% after reporting revenues below estimate.

 

In Europe, DAX rose 0.7%, France was flat while FTSE fell 0.1%. Italian market surged 2.1% on news that former ECB President Mario Draghi is set to form a new unity government in Italy. Eurozone IHS Markit’s final composite PMI for January came in at 47.8 last month compared to 49.1 in December.

 

AT HOME

 

Benchmark indices surged nearly a percent, extending the winning streak to third straight day and hitting fresh intraday as well as closing highs. Sensex added 458 points to settle at 50255 while Nifty finished at 14790, up 142 points. Nifty mid-cap and small-cap indices climbed 1.4% and 1.2% respectively with the former hitting fresh record high. Except 0.5% and 0.03% lower Realty and FMCG indices, all the BSE sectoral indices ended in green, with Utilities and Healthcare indices leading the tally, up 2.5% and 2.4% respectively.

 

FIIs net bought stocks worth Rs 2521 cr but net sold index futures and stock futures worth Rs 69 cr and 858 cr respectively. DIIs were net sellers to the tune of Rs 400 cr.

 

Rupee ended unchanged at 72.96/$.

 

India's IHS Markit Services PMI for January came in at 52.8, up from 52.3 in December. The composite PMI rose to 55.8 from 54.9.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.1%-0.4% and SGX Nifty is suggesting a marginally higher start for our market.

 

Readers would recall that we had turned our view on Nifty bullish after 14075 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 upon crossover of 14753, 

15000 would be the next upside target.

 

Nifty crossed 14753 level and surged all the way to 14868 before closing at 14790.

 

15000, around which a trendline adjoining tops made in 2010 and 2015 is placed, continues to be next major target/resistance to eye.

 

14470-14336, the gap created by Monday's gap-up opening, would now act as the immediate resistance zone.

 

Meanwhile, trading longs can be held on to with the stop-loss of 14336.

 

SBI and Hero MotoCorp will report their quarterly earnings today.