NIFTY SURGES TOWARDS 11630 TARGET AFTER ACHIEVING 11495

NIFTY SURGES TOWARDS 11630 TARGET AFTER ACHIEVING 11495

WORLD MARKETS

US indices gained 0.1%-0.4% following strong earnings from companies such as Netflix and Morgan Stanley and digesting news of European Union and the U.K. striking a deal on Brexit.

U.K. Prime Minister Boris Johnson, via tweeter, said “we have a great new Brexit deal” and called on British lawmakers to back the deal when it’s put before Parliament on Saturday. Meanwhile, European Commission President Jean-Claude Juncker tweeted that the deal was a “fair and balanced” one.

In Europe, FTSE rose 0.2% while other markets fell between 0.1%-0.5%.

Brent crude rose 52 cents to $59.94 and U.S. WTI crude gained 65 cents to settle at $53.99 a barrel.

AT HOME

Sensex and Nifty soared 1.2% and 1.1% respectively, extending the winning streak to fifth straight day and closing at the highest level since 23rd September. Sensex added 453 points to settle at 39052 while Nifty finished at 11586, up 122 points. BSE mid-cap and small-cap indices climbed 1.8% and 0.9% respectively. All the BSE sectoal indices ended in green with Auto index on the top, up 2.9%, followed by 1.8% higher Consumer Discretionary Goods & Services index.

FIIs net bought stocks, index futures and stock futures worth Rs 1159 cr, 794 cr and 1235 cr respectively. DIIs were net sellers to the tune of Rs 512 cr.

Tata Motors soared after Britain and the European Union said that they have struck an outline Brexit deal, though it must still be formally approved by the bloc and ratified by the European and U.K. Parliaments.

OUTLOOK

Today morning, Asian markets are trading with gains of upto half a percent but SGX Nifty is suggesting about 25 points lower start for our market.

Readers would recall that after Nifty achieved 11390 target, we had given 11495 as next target, above which, we had said, 11640, where a downward sloping trendline adjoining tops made in June and July is placed, would be the next target.

Yesterday, Nifty, after achieving 11495 target, went all the way to 11599 before closing at 11586.

11630, where a downward sloping trendline adjoining tops made in June and July is placed, continues to be next upside target to eye. It that is taken out, 11695, the top made in September, would be the next target.

Meanwhile, immediate support on the hourly chart has moved up to 11405, with the stop-loss of which, trading longs can be held on to.

Reliance Industries will report its quarterly earnings today.

NIFTY SET TO ACHIEVE 11495 TARGET; TRAIL STOP-LOSS TO 11320

NIFTY SET TO ACHIEVE 11495 TARGET; TRAIL STOP-LOSS TO 11320

WORLD MARKETS

US indices fell 0.1%-0.3% on weak retail sales data, coupled with persisting trade-war fears.

Retail sales unexpectedly dropped 0.3% in September, marking their first decline in seven months.

The Wall Street Journal reported there are questions about how much more in U.S. agricultural products China will actually buy and for how long. Bloomberg News said China wants U.S. tariffs on Chinese goods rolled back before moving forward with the purchases. Meanwhile, Trump said a deal probably won’t be signed until his meeting with Chinese President Xi Jinping in Chile next month. He noted the deal was currently being worked on.

Also, China threatened to take countermeasures against the U.S. in response to a bill favoring protesters in Hong Kong.

Bank of America reported better-than-expected earnings and revenue for the third quarter, sending its stock up 1.5%. United Airlines, meanwhile, rose more than 2% on earnings that topped expectations.

In Europe, FTSE and CAC fell 0.6% and 0.1% respectively while DAX rose 0.3%. Brexit negotiations hit a wall according to media reports over a future trade deal and fair competition clauses.

On the data front, U.K. consumer price index inflation for September roughly matched expectations to grow 1.7% year-on-year, while euro zone CPI rose 0.4% on the month and 0.8% on the year. Italy saw its EU-harmonized inflation rise 1.4% month-on-month in September.

Brent crude rose 1% to $59.34 a barrel while U.S. crude gained 55 cents, or 1%, to settle at $53.36.

AT HOME

Sensex and Nifty gained 0.3% and 0.24% respectively, extending the winning streak to fourth straight day. Sensex settled at 38598, up 92 points while Nifty finished at 11471, up 43 points. BSE mid-cap index fell 0.1% while small-cap index rose 0.2%.  BSE Oil & Gas and Realty indices climbed 1.2% and 1.1% respectively, becoming top gainers among the sectoral indices while Power and Utilities indices were the top losers, down 1.1% and 0.9% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 686 cr, 408 cr and 746 cr respectively. DIIs were net buyers to the tune of Rs 1577 cr.

Rupee appreciated 10 paise to end at 71.43/$.

OUTLOOK

Today morning, Shanghai is flat while Hang Seng and Nikkei are up 0.5% and 0.2% respectively. SGX Nifty is suggesting a flattish start for our market.

At the risk of repeating, after Nifty achieved 11390 target, which was the 50% retracement level of the recent 11695-11090 fall, we have been working with next target of 11495, which is the 67% retracement level of the aforementioned upmove.

Nifty yesterday touched a high of 11481 before closing at 11471, coming in very close to 11495 target.

11495, the 67% retracement level of the 11695-11090 fall, continues to be next upside target/resistance to eye. If that is taken out, 11640, where a downward sloping trendline adjoining tops made in June and July is placed, would be the next target.

Meanwhile, immediate support on the hourly chart has moved up to 11320, with the stop-loss of which, trading longs can be held on to

ZEE Entertainment, TVS Motors, PVR and L & T Infotech will report their quarterly earnings today.

NIFTY NEARS 11495 TARGET; TRAIL STOP-LOSS TO 11300

NIFTY NEARS 11495 TARGET; TRAIL STOP-LOSS TO 11300

WORLD MARKETS

US indices soared 0.9%-1.2% as the corporate earnings season got off to a strong start.

J.P. Morgan Chase jumped 3% to a record after its third-quarter numbers topped analyst expectations. UnitedHealth, another Dow member, surged 8.2%, after quarterly profit topped expectations by 13 cents per share. Johnson & Johnson rose 1.6% as higher sales of cancer and other prescription drugs boosted quarterly numbers.

Comments from European Union negotiator Michel Barnier that a Brexit deal between the bloc and the U.K. is still possible this week also boosted the sentiment.

In Europe, FTSE ended flat while DAX and CAC rose more than a percent

Brent crude fell $0.68, or 1.15%, to $58.67 a barrel, while U.S. WTI crude settled down 78 cents, or 1.5%, at $52.81.

AT HOME

Benchmark indices climbed seven tenth of a percent each, extending the winning streak to third straight day. Sensex settled at 38506, up 291 points while Nifty added 87 points to finish at 11428. BSE mid-cap index gained 0.7% but small-cap index fell 0.1%. BSE Auto and Meatl indices soared 2.4% and 1.6% respectively, becoming top gainers among the sectoral indices while Telecom index tumbled 2.2%, becoming top loser, followed by 0.8% lower Teck index.

FIIs net bought stocks, index futures and stock futures worth Rs 436 cr, 744 cr and 358 cr respectively. DIIs were net buyers to the tune of Rs 929 cr.

Rupee depreciated 31 paise to end at  71.54/$.

India's trade deficit narrowed to $11 bn in September as exports remained stagnant and imports saw a drop of around $3 bn from August.

IMF cut India's FY20 GDP forecast to 6.1%, down 90 bps from its earlier forecast.

Wipro largely met estimates in Q2. Constant currency growth was slightly below expectations but margins beat estimates. The company raised growth guidance for the second half of the financial year, pushing the upper-en closer to 3%.

OUTLOOK

Today morning, Nikkei is up more than a percent while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting about 35 points higher start for our market.

In yesterday's report we had reiterated 11495 target, which is the 67% retracement level of the 11695-11090 fall and had advised holding on to trading longs with the stop-loss of 11250.

Nifty soared all the way to 11462 before closing at 11428 and is set to open above 11450 today.

11495, the 67% retracement level of the 11695-11090 fall, continues to be next upside target/resistance to eye. If that is taken out, 11640, where a downward sloping trendline adjoining tops made in June and July is placed, would be the next target.

Meanwhile, immediate support on the hourly chart has moved up to 11300, with the stop-loss of which, trading longs can be held on to

11495 IS NEXT UPSIDE TARGET; STAY LONG WITH THE STOP-LOSS OF 11250

11495 IS NEXT UPSIDE TARGET; STAY LONG WITH THE STOP-LOSS OF 11250

WORLD MARKETS

US indices fell 0.1% each as new doubts emerged about the U.S.-China partial trade deal.

Media reports suggested that China wants to have additional trade talks before signing what President Donald Trump characterized Friday as a “very substantial phase one deal.” 

Treasury Secretary Steven Mnuchin, in a media interaction said while both sides made “substantial progress” last week, the agreement is still “subject to documentation.” He also said a December tariff hike on Chinese products would go through if a deal is not reached by then.

As part of phase one, China would buy between $40 billion and $50 billion in U.S. agricultural products. China also agreed to address intellectual-property concerns raised by the U.S. In return, the U.S. agreed to hold off on a tariff hike scheduled for this week.

Earlier, data showed that China’s import and export figures were worse than expected in September, with exports falling 3.2% on the year in U.S. dollar terms, while imports declined 8.5%.

Brent crude dropped $1.27, or 2.1%, to $59.24 a barrel, while WTI crude lost $1.11, or 2%, to settle at $53.59 a barrel.

European markets fell 0.3%-0.5%.

AT HOME

After gaining nearly a percent, Sensex and Nifty nosedived in last hour to end higher by just 0.2% and 0.3% respectively, nevertheless, extending the winning streak to second straight day. Sensex settled at 38214, up 87 points while Nifty added 36 points to finish at 11341. BSE mid-cap and small-cap indices gained 0.4% and 0.1% respectively.  BSE Telecom and Realty indices climbed 2.2% and 2% respectively, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 0.9% and 0.5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 896 cr, 975 cr and 252 cr respectively. DIIs were net sellers to the tune of Rs 425 cr.

Rupee depreciated 21 paise to end at 71.23/$.

HUL reported better-than-expected earnings but management commentary remained cautious. Revenue rose 6.7% y-o-y to Rs 9852 cr, EBITDA jumped 21% to Rs 2443 cr, margin improved 290 bps to 24.8% and net profit rose 21.2% to Rs 1848 cr.

India's wholesale prices based inflation eased to 0.33% in September, as against 1.08% in August due to fall in prices of non-food articles. Retail inflation for September rose to 3.99%, it's highest in 14-months, from upwardly revised 3.28% in August.

OUTLOOK

Today morning, Nikkei is up 1.8%, Hang Seng is little changed while Shanghai is down 0.2%. SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had said that "11390, the 50% retracement level of the recent 11695-11090 fall, continues to be next upside target/hurdle to eye, upon crossover of which 11495, the 67% retracement level of this move, would be the next target".

Nifty, after achieving 11390 target, went all the way to 11420, but slipped from there to end at 11341 and is set to open higher today.

11495, the 67% retracement level of the 11695-11090 fall, continues to be next upside target/resistance to eye.

11250 is the immediate support on the hourly chart below which 11189, the low made on Friday, would be next support.

Meanwhile, trading longs can be held on to with the stop-loss of 11250.

Wipro will report its quarterly earnings today.

11495 ABOVE 11390; 11189 IS IMMEDIATE SUPPORT

11495 ABOVE 11390; 11189 IS IMMEDIATE SUPPORT

WORLD MARKETS

US indices soared 1.1%-1.3%  after Trump said China and the U.S. reached the first phase of a substantial trade deal that delays tariff hikes that were set to kick in next week.

Trump said phase one of the trade deal will be written over the next three weeks. As part of this phase, China will purchase between $40 billion and $50 billion in U.S. agricultural products. Trump also said the deal includes agreements on foreign-exchange issues with China. In exchange, the U.S. agreed to hold off on tariff hikes that were set to take effect Tuesday.

Brent futures surged 2.4% to $60.51 a barrel while WTI futures settled 2.2% higher at $54.70 after Iranian officials said that two rockets had struck an Iranian tanker traveling through the Red Sea.

European markets gained 0.8%-2.9% with DAX on the top.

For the week, US indices gained 03.6%-0.9%. European markets soared 1.3%-4.2% with DAX on the top. Asian markets added 1.2%-2.4%.

AT HOME

Benchmark indices ended higher by six tenth of a percent after an extremely choppy session. Sensex settled at 38127, up 246 points while Nifty added 70 points to finish at 11305. BSE mid-cap and small-cap indices gained 0.2% and 0.4% respectively. BSE Metal and IT indices climbed 2.4% and 1.7% respectively, becoming top gainers among the sectoral indices while Oil & Gas and Energy indices were the top losers, down 0.4% each.

FIIs net bought stocks and index futures worth Rs 750 cr and 661 cr respectively but net sold stock futures worth Rs 681 cr. DIIs were net sellers to the tune of Rs 703 cr.

Rupee appreciated 5 paise to end at 71.02/$.

For the week, Sensex and Nifty gained 1.2% each.

Infosys met expectations in Q2 with revenue growth of 3.3% and margin improvement of 120 bps. It hiked FY20 revenue guidance to 9-10% band.

Industiral output contracted by 1.1% in August, the slowest pace of growth in more than 6 years. Capital goods, manufacturing, electricity and consumer durables output shrinks sharply.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.4%-0.8% but SGX Nifty is suggesting about 20 points lower start for our market.

In Friday's report we had said that "11322, the top made Wednesday, continues to be immediate hurdle, upon crossover of which, 11390, the 50% retracement level of the recent 11695-11090 fall, would be the next upside target to eye".

Nifty broke 11322 hurdle and went all the way to 11363 before closing at 11305 and is set to open below 11300 today.

11390, the 50% retracement level of the recent 11695-11090 fall, continues to be next upside target/hurdle to eye, upon crossover of which 11495, the 67% retracement level of this move, would be the next target to eye.

Meanwhile, 11189, the low made on Friday, would act as immediate support below which, 11090, the low made last week, would be important support to eye.

11090-11322 CONTINUES TO BE IMMEDIATE RANGE

11090-11322 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices gained 0.6% each after Trump said he will meet with Chinese Vice Premier Liu He on Friday, raising hope the two countries could make progress on the trade front.

Media reports suggested that U.S was considering an agreement to suspend next week’s tariff increase in exchange for a currency pact.  Another report said Trump administration will grant licenses to some U.S. companies to sell nonsensitive supplies to Huawei.

Brent crude rose 90 cents, or 1.5%, to $59.21 a barrel while WTI futures settled 96 cents, or 1.8% higher at $53.55 per barrel as OPEC indicated that all options were on the table to balance oil markets and that it would take a decision in December on supply for next year.

European markets rose 0.3%-1.3%. UK GDP figure beat forecasts, rising 0.3% in the three months to August as July’s growth was revised up from 0.3% to 0.4%.

AT HOME

After falling about a percent, Sensex and Nifty recouped some of the losses in last half an hour to end lower by 0.8% and 0.7% respectively. Sensex settled at 37880, down 297 points while Nifty lost 78 points to finish at 11234. BSE mid-cap and small-cap indices fell 0.9% and 0.6% respectively. BSE Bankex and Realty indices tumbled 2.6% and 2.2% respectively, becoming top losers among the sectoral indices while Telecom index soared 3.8%, becoming top gainer, followed by 1.7% higher Energy index.

FIIs net sold stocks, index futures and stock futures worth Rs 263 cr, 685 cr and 227 cr respectively. DIIs were net buyers to the tune of Rs 503 cr.

Rupee ended unchanged at 71.07/$.

TCS was a miss on all the parameters. Dollar revenue growth stood at 0.6% while constant currency growth stood at 1.6%. Rupee revenue rose 2.1% q-o-q to Rs 38977 cr, EBIT rose 1.5% to Rs 9361 cr, EBIT margin fell 20 bps to 24%, the lowest in 2-years and net profit fell 1.1% to Rs 8042 cr. The company declared a special dividend of Rs 40 per share.

Indusind Bank's net profit met estimates while NII was a slight miss. Net profit rose 3.4% q-o-q to Rs 1383 cr while NII rose 2.3% to Rs 2909 cr. Gross NPA ratio rose 4 bps q-o-q to 2.19% while net NPA ratio improved 11 bps to 1.12%. Slippages rose to Rs 1102 cr from Rs 725 cr.

Bharti Airtel surged after Reliance Jio said it will start charging for calls made to rival networks at 6 paise a minute.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-1.2% and SGX Nifty is suggesting about 20 points higher start for our market.

On Wednesday, after achieving 34-DMA target of 11090, Nifty had bounced back sharply to touch a high of 11322, which also coincided with the resistance level mentioned by us. In yesterday's report we had said that 11322, the top made on Wednesday, is the immediate hurdle while 11090, the low made on Wednesday, continues to be important immediate support.

Nifty yesterday slipped to touch a low of 11208 before closing at 11234 and is set to open near 11250 today.

11090, the low made Wednesday, continues to be important immediate support to eye. 11322, the top made Wednesday, continues to be immediate hurdle, upon crossover of which, 11390, the 50% retracement level of the recent 11695-11090 fall, would be the next upside target to eye.

NIFTY STAGES A SHARP REBOUND AFTER ACHIEVING 11090 TARGET

NIFTY STAGES A SHARP REBOUND AFTER ACHIEVING 11090 TARGET

WORLD MARKETS

US indices gained 0.7%-1%, breaking two-day losing streak, on news that China is prepared to accept a partial trade deal.

The report said that China is willing to discuss a potential accord providing no more tariffs are imposed by President Donald Trump’s administration, including duties scheduled this month and in December.

Minutes of September Fed meeting showed the trade war remains a concern for Fed officials. However, they also showed central-bank officials think the market may be overly optimistic about the number of rate cuts moving forward. S

Brent crude rose 22 cents to $58.44 a barrel while WTI fell 4 cents to $52.59.

European markets rose 0.3%-0.8%.

AT HOME

After falling about a third of a percent in the initial trade, benchmark indices jumped two percent from the bottom of the day to end higher by 1.7%, breaking six-day losing streak. Sensex settled at 38178, up 646 points while Nifty added 187 points to finish at 11313. BSE mid-cap and small-cap indices gained 1.4% and 0.7% respectively. BSE Telecom index and Bankex soared  4.9% and 3.7% respectively, becoming top gainers among the sectoral indices while IT and Consumer Durables indices fell 0.9% and 0.4% respectively, becoming top losers.

FIIs net sold stocks and index futures worth Rs 485 cr and 167 cr respectively but net bought stock futures worth Rs 903 cr. DIIs were net buyers to the tune of Rs 956 cr.

Rupee depreciated 5 paise to end at 71.07/$.

OUTLOOK

A South China Morning Post report earlier today said US and China, in deputy-level negotiations that were held earlier this week, made no progress and China refused to discuss the issue of forced technology transfers. The report also said that high-level trade negotiations including Chinese Vice Premier Liu He would be cut to one day now.

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 60 points lower start for our market.

Readers would recall that after Nifty breached 200-DMA support placed at 11250, we had given next downside target of 34-DMA, which was placed around 11090.

Nifty, yesterday touched a low of 11090, exactly achieving this target and rebounded sharply from there to end at 11313 but is set to open near 11250 today.

11322, the top made yesterday, is the immediate hurdle to eye, upon crossover of which, 11390, the 50% retracement level of the recent 11695-11090 fall, would be the next upside target to eye.

11090, the low made yesterday, continues to be important immediate support.

TCS and Indusind Bank will report their quarterly earnings today.