10975 CONTINUES TO BE CRUCIAL SUPPORT; 11537 IMMEDIATE HURDLE

10975 CONTINUES TO BE CRUCIAL SUPPORT; 11537 IMMEDIATE HURDLE

WORLD MARKETS

US markets nosedived 2.8%-3% as an emergency rate cut by the Federal Reserve failed to assuage concerns of slower economic growth due to the coronavirus outbreak.

The decision to cut rates by half a percentage point came two weeks before the Fed’s scheduled meeting as the central bank felt it was necessary to act quickly to combat the effect of the virus spreading worldwide. It was Fed’s first such emergency action coming in between scheduled meetings since the 2008 financial crisis.

The announcement comes after the G-7 said in a statement they will use policy tools to curb an economic slowdown. However, the statement contained no specific actions.

The yield on the benchmark 10 year U.S. Treasury note fell below 1% for the first time ever, while gold prices jumped 2.9% to settle at $1,644.40 per ounce. The 10-year yield was last at 0.9877% while spot gold traded at $1,642.94 per ounce.

WTI crude rose 43 cents, or 0.9%, to settle at $47.18 per barrel while  Brent fell 17 cents to $51.73 per barrel.

Main European markets gained 1%-1.1%. Eurozone consumer prices were up 1.2% in February year-on-year, following a 1.4% rise in January.

AT HOME

Bulls got a much needed respite as Sensex and Nifty climbed 1.3% and 1.5% respectively, breaking seven-day losing streak. Sensex added 479 points to settle at 38623 while Nifty finished at 11303, up 170 points. BSE mid-cap and small-cap indices rose 1.8% and 1.2% respectively. All the BSE sectoral indices ended in green with Metal index leading the tally, up 5.7%, followed by 4% higher Power index.

FIIs net sold stocks worth Rs 2416 cr but net bought index futures and stock futures worth Rs 241 cr and 2040 cr respectively. DIIs were net buyers to the tune of Rs 3135 cr.

Rupee depreciated 57 paise to end at 73.25/$.

OUTLOOK

Today morning, Nikkei is up 0.5% while Shanghai and Hang Seng are modestly lower. SGX Nifty is suggesting about 30 points lower start for our market.

In yesterday's report we had said that 34-Month moving average, placed around 10970, continued to be crucial support to eye while immediate hurdle on the hourly chart had moved lower to 11537.

Nifty, after touching a low of 11152, rebounded to close at 11303 and is set to open near 11250 today.

11537, which is also the upper end of the gap created by Friday's gap down opening, continues to be immediate upside hurdle.

10975, where 34-month moving average is placed, continues to be crucial support.

NIFTY NEARS BIG 34-MONTH MOVING AVERAGE SUPPORT; 11537 IS THE IMMEDIATE HURDLE

NIFTY NEARS BIG 34-MONTH MOVING AVERAGE SUPPORT; 11537 IS THE IMMEDIATE HURDLE

WORLD MARKETS

US indices soared 4.5%-5.1%, with the Dow posting its biggest gain since March 2009 and snapping a 7-day losing streak, on expectation of a coordinated action from central banks to combat the economic impact of the coronavirus outbreak.

Media reports suggested that a conference call between representatives of the Group of Seven industrialized nations is expected to happen on Tuesday at 7 a.m. ET, and will be led by U.S. Treasury Secretary Steven Mnuchin and U.S. Federal Reserve Chairman Jerome Powell

Earlier, Bank of Japan said it will “strive to stabilize markets and offer sufficient liquidity via market operations and asset purchases.”

US ISM manufacturing index fell to 50.1 in February, the lowest level since the end of 2019. It also came below an estimate of 50.8.

Brent crude rose 4.3%, or $2.20, to $51.87 per barrel while WTI crude gained $1.99, or 4.45%, to settle at $46.75 per barrel.

In Europe, FTSE and CAC  rose 1.1% and 0.4% respectively while DAX fell 0.3%.

AT HOME

Afer gaining nearly 2%, Sensex and Nifty nosedived in late noon trade on news of 2 fresh coronavirus cases in India to end lower by 0.4% and 0.6% respectively, extending the losing streak to seventh straight day. Sensex slipped 153 points to settle at 38144 while Nifty finished at 11132, down 69 points. BSE mid-cap and small-cap indices fell 0.6% and 0.8% respectively. BSE Metal and Oil & Gas indices were the top losers among the sectoral indices, down 2% each while IT and Teck indices were the sole gainers, up 1.1% and 0.6% respectively.

FIIs net sold stocks worth Rs 1355 cr but net bought index futures and stock futures worth Rs 3159 cr and 820 cr respectively. DIIs were net buyers to the tune of Rs 1139 cr.

Rupee depreciated 46 paise to end at 72.68/$.

Hero MotoCorp sales fell 19.3% to 4.98 lk units. TVS Motors' February sales fell 15.4% y-o-y to 2.53 lk units. Eicher Motors' Royal Enefield sales rose 1% to 63536 units.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.5%-1.4% while SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had said that 11385-11536, the gap created by Friday's gap down opening, would work as immediate resistance zone while 11100, where an upward sloping trendline adjoining bottoms made in October 2018 and August 2019 was placed, was the next important support to eye below which, 34-month moving average, placed around 10950, would be the next major support. We had also advised holding on to short positions with the stop-loss of 11536.

Nifty, after touching a high of 11433, plunged to touch a  low of 11036 and finally closed at 11132 and is set to open near 11150 today.

34-Month moving average, placed around 10970, continues to be crucial support to eye. If 10970 gives way, 10637, the bottom made in August 2019, would be the next major support.

Meanwhile, immediate hurdle on the hourly chart has moved lower to 11537, with the stop-loss of which, trading shorts can be held on to.

11100 IS THE NEXT MAJOR SUPPORT; 11385-11536 IS THE RESISTANCE ZONE

11100 IS THE NEXT MAJOR SUPPORT; 11385-11536 IS THE RESISTANCE ZONE

WORLD MARKETS

After plunging nearly 4% in the initial trade, Dow and S & P 500 rebounded smartly towards the end of the session to end lower by just 1.4% and 0.8% respectively while Nasdaq closed flat.

Initial meltdown was attributed to rising fears of Coronavirus. A Google employee tested positive for the coronavirus while New Zealand and Nigeria reported their first coronavirus cases. Also, South Korea, confirmed more than 500 new cases and China reported 327 additional cases.

The recovery happened after Fed Chairman Jerome Powell said in a statement the central bank will “act as appropriate” to support the economy amid the coronavirus outbreak.

The benchmark U.S. 10-year Treasury yield touched a fresh record low of 1.114% before recovering to 1.15%.

WTI crude plunged 4.9%, to $44.76 per barrel while Brent fell 3.2% to $50.74, hitting lowest levels in 14 months.

European markets ended with deep cuts of 3.2%-3.9%.

For the week, US indices nosedived 10.5%-12.4%, suffering their worst fall since the financial crisis of 2008. European markets fell nearly 12%. Asian markets fell 4.3%-10%. WTI and Brent oil plunged about 15% and 14% for the week, their biggest weekly decline since December 2008.

AT HOME

Sensex and Nifty nosedived 3.6% and 3.7% respectively, suffering the worst percentage fall in 4-1/2 years and extending the losing streak to sixth straight day. Both the indices ended at the lowest level in nearly 4-1/2 months. Sensex settled at 38297, down 1448 points while Nifty lost 431 points to finish at 11201. Nifty mid-cap and small-cap indices tumbled 3.3% and 3.8% respectively to close at more than 2-month low. All the BSE sectoral indices ended in red with Metal and IT indices leading the losses, down 7% and 5.6% respectively.

FIIs net sold stocks and index futures worth Rs 1429 cr and 1631 cr respectively but net bought stock futures worth Rs 2118 cr. DIIs were net buyers to the tune of Rs 7621 cr.

Rupee depreciated 61 paise to end at 72.22/$.

For the week, Sensex and Nifty collapsed 7% and 7.3% respectively, marking the largest weekly cut since the week ended  10th July 2009.

India's Q3 FY20 GDP growth came in at 4.7%, its slowest rate in more than 6 years, weighed down by a contraction in manufacturing sector output. The figures for September quarter was revised upward to 5.1% from 4.5% earlier. Reading for June quarter was revised higher to 5.6% from 5%. For the full year, NSO stuck to its earlier projection of 5% growth,  implicitly assuming that the economy would further slow a tad in the fourth quarter (January-March) to 4.6%.

Maruti February sales fell 1.1% to 1.47 lk units. Tata Motors domestic sales plunged 34% to 38002 units. M & M sales were down 42% at 32476 units. Eicher Motors' CV sales fell 29.2% to 4439 units.

OUTLOOK

Data on Saturday showed China’s official Purchasing Managers’ Index (PMI) fell to a record low of 35.7 in February from 50.0 in January. 

Australia, Thailand and the U.S. reported over the weekend their first coronavirus-related deaths. At least 85,000 cases of the coronavirus have been confirmed around the world so far, along with more than 2,900 virus-related deaths.

Today morning, Asian markets are trading with gains of 0.7%-1.3% and SGX Nifty is suggesting about 100 points higher start for our market.

In Friday's report we had said that 11400, where 20-month moving average was placed, was the next important support below which, 11230, the 67% retracement level of the entire 10637-12430 upmove, would be the next support.

Nifty, opened below the 11400 support and plunged all the way to 11175 before closing at 11201 and is set to open near 11300 today.

11100, where an upward sloping trendline adjoining bottoms made in October 2018 and August 2019 is placed, is the next important support to eye. Below 11100, 34-month moving average, placed around 10950, would be the next major support. On the way up, 11385-11536, the gap created by Friday's gap down opening, would work as immediate resistance zone. Meanwhile, trading shorts can be held on to with the stop-loss of 11536.

11400 CONTINUES TO BE NEXT IMPORTANT SUPPORT; 11825 IMMEDIATE HURDLE

11400 CONTINUES TO BE NEXT IMPORTANT SUPPORT; 11825 IMMEDIATE HURDLE

WORLD MARKETS

Dow and S & P 500 plunged 4.4% each while Nasdaq collapsed 4.6% on worries that the coronavirus may be spreading in the U.S. The Dow had its worst day since February 2018 while the Nasdaq and S&P 500 posted their biggest one-day loss since August 2011.

The CDC confirmed on Wednesday evening the first U.S. coronavirus case of unknown origin in Northern California, indicating possible “community spread” of the disease. Yesterday, California Gov. said the state is monitoring 8,400 people for coronavirus.

Meanwhile South Korea has confirmed a total of more than 1,700 cases while more than 600 people have contracted the virus in Italy.

Microsoft cut its revenue guidance for its personal computing division as the supply chain is “returning to normal operations at a slower pace than anticipated,”. PayPal also issued a warning about its outlook.

The benchmark 10-year Treasury yield dipped below 1.25%, hitting a record low.

Brent crude fell 2.3% to $52.18 per barrel while WTI fell 3.4% to settle at $47.09, both hitting more than 1-year low.

European markets tumbled 2.7%-3.6%. Euro zone economic sentiment in February came in at 103.5, up from 102.6 in January and beating consensus expectations for a reading of 102.2, while consumer confidence came in at -6.6, up from -8.1 in January.

AT HOME

Benchmark indices fell four tenth of a percent, extending the losing streak to fifth straight day and Nifty closing at the lowest level in four months. Sensex lost 143 points to settle at 39745 while Nifty finished at 11633, down 45 points. Nifty mid-cap and small-cap indices fell 0.8% and 1.3% respectively, extending the losing streak to fourth straight day. Except 0.7% and 0.2% higher Consumer Durables and Healthcare indices respectively, all the BSE sectoral indices ended in red with Realty and Oil & Gas indices leading the tally, down 2.1% and 1.3% respectively.

FIIs net sold stocks and index futures worth Rs 3127 cr and 2200 cr respectively but net bought stock futures worth Rs 726 cr. DIIs were net buyers to the tune of Rs 3498 cr.

Rupee appreciated 3 paise to end at 71.63/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 1.7-3.3% and SGX Nifty is suggesting about 180 points lower start for our market.

In yesterday's report we had said that 11614, was the next important support, below which, 20-month moving average, placed around 11400, would be the next support. We had also advised holding on to short positions with the stop-loss of 11940.

Nifty broke 11614 support and plunged all the way to 11536, but rebounded from there to end at 11633. The benchmark however is set to open near 11450 today.

11400, where 20-month moving average is placed, continues to be next important support to eye. Below 11400, 11230, the 67% retracement level of the entire 10637-12430 upmove, would be the next support.

Immediate hurdle, after today’s gap down opening, would have moved lower to 11825, with the stop-loss of which, trading shorts can be held on to.

Q3 GDP data will be released today and is expected to show a growth of 4.6%, as against 4.5% growth of Q2 and 6.6% figure of Q3 lat year.

NIFTY NEARS CRUCIAL SUPPORTS; 11940 IS IMMEDIATE HURDLE

NIFTY NEARS CRUCIAL SUPPORTS; 11940 IS IMMEDIATE HURDLE

WORLD MARKETS

After gaining more than a percent in the initial trade, Dow and S & P 500 saw a sustained downward move through rest of the session to end with cuts of 0.5% and 0.4% respectively while Nasdaq gained just 0.2% as the 10-year Treasury yield traded at a record low amid concerns over the coronavirus spreading even further.

After hovering around 1.36% earlier in the day, the 10-year Treasury yield slid to an all-time low of 1.3%  after Bloomberg News cited a Food and Drug Administration official saying the coronavirus was on the cusp of a pandemic.

Brent crude fell $1.52 or 2.7% to settle at $53.43 per barrel, while WTI fell 2.34%, or $1.17, to $48.73 per barrel.

In Europe, FTSE and CAC gained 0.4% and 0.1% respectively while DAX fell 0.1%. French consumer confidence slightly exceeded expectations to remain stable in February at a reading of 104.

AT HOME

Sensex and Nifty nosedived 1% each, extending the losing streak to fourth straight day and closing at the lowest level since 3rd February and 1st February respectively. Sensex settled at 39888, down 392 points while Nifty lost 119 points to finish at 11678. BSE mid-cap and small-cap indices fell 1.3% and 0.8% respectively. Except 0.2% higher Telecom index, all the BSE sectoral indices ended in red with Realty index leading the fall, down 2.2%, followed by 2.1% lower Auto and Capital Goods indices.

FIIs net sold stocks, index futures and stock futures worth Rs 3337 cr, 1262 cr and 1477 cr respectively. DIIs were net buyers to the tune of Rs 2786 cr.

Rupee appreciated 9 paise to end at 71.64/$.

OUTLOOK

Today morning, Nikkei and Hang Seng are down 1.4% and 0.6% respectively while Shanghai is marginally higher. SGX Nifty is suggesting about 30 points lower start for our market.

In yesterday's report we had said that 11684, where 200-DMA was placed, was the next immediate support, upon breach of which, 11614, the bottom made on 3rd February, would be the next crucial support. We had also advised holding on to short positions with the stop-loss of 11985.

Nifty, after achieving 200-DMA target, fell further to 11640 and finally closed at 11678.

11614, the bottom made on 3rd February, continues to be next important support to eye. If 11614 breaks, 20-month moving average, placed around 11400, would be the next support.

Immediate hurdle on the hourly chart has moved lower to 11940, with the stop-loss of which, trading shorts can be held on to.

11684, 11614 ARE DOWNSIDE SUPPORTS; 11985 IS IMMEDIATE HURDLE

11684, 11614 ARE DOWNSIDE SUPPORTS; 11985 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 2.8%-3.2%, adding to Monday's steep losses as 10-year Treasury yield hit a record low and health officials warned of a possible coronavirus outbreak in the U.S.

The 10-year US Treasury yield traded at 1.33%, hitting an all-time low. The 30-year U.S. bond yield also reached a record low.

Centers for Disease Control and Prevention (CDC) officials briefed the U.S. on how to get ready if the coronavirus outbreak worsens domestically.

South Korean authorities have confirmed more than 900 cases within the country’s borders. Meanwhile, Italy has been the worst affected country outside of Asia, with more than 200 reported cases. Iran also confirmed at least 12 deaths.

Brent crude tumbled $1.48 to trade at $54.86 per barrel while WTI slipped $1.53 to settle at $49.90 per barrel, extending the losing streak to third straight day.

European markets fell 1.4%-2.4%. German economy grew by 0.6% in 2019, the weakest rate of expansion since the euro zone debt crisis in 2013.

AT HOME

Sensex and Nifty ended lower by 0.2% and 0.3% respectively, extending the losing streak to third straight day. Sensex settled at 40281, down 82 points while Nifty lost 31 points to finish at 11797. BSE mid-cap and small-cap indices fell 0.4% each. BSE Energy index slipped 1.6%, becoming top loser among the sectoral indices, followed by 1.2% lower Oil & Gas and Healthcare indices. Realty and Telecom indices were the top gainers, up 1% and 0.9% respectively.

FIIs net sold stocks and stock futures worth Rs 2315 cr and 1553 cr respectively but net bought index futures worth Rs 1470 cr. DIIs were net buyers to the tune of Rs 1565 cr.

Rupee appreciated 19 paise to end at 71.73/$.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.9%-1.6%. SGX Nifty is suggesting about 100 points lower start for our market.

In yesterday's report we had said that 11813, the low made Monday was the immediate support, below which, 11614, the bottom made in early February, would be the next support.

Nifty broke 11813 support and went all the way to 11780 before closing at 11797 and is set to open near 11700 today .

11684, where 200-DMA is placed, is the next immediate support, upon breach of which, 11614, the bottom made on 3rd February, would be the next crucial support.

11985 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

11813 IS THE IMMEDIATE SUPPORT; 12012 IMMEDIATE HURDLE

11813 IS THE IMMEDIATE SUPPORT; 12012 IMMEDIATE HURDLE

WORLD MARKETS

US indices nosedived 3.4%-3.7% as the coronavirus cases outside China surged, stoking fears of a prolonged global economic slowdown. This was the worst fall in 2 years for the Dow and S & P 500, which wiped out 2020 gains for the Dow.

South Korea raised its coronavirus alert to the “highest level” over the weekend, with the latest spike in numbers bringing the total infected to more than 800 — making it the country with the most cases outside mainland China. Outside of Asia, Italy has been the worst affected country so far, with more than 130 reported cases and three deaths.

The benchmark 10-year US note yield fell to 1.369%, putting the key rate close to it all-time low closing around 1.36%. Gold futures jumped 1.7% to around $1,676.60 per ounce to hit its highest level since January 2013.

WTI crude shed 3.65%, or $1.95, to settle at $51.43 per barrel for its worst day since Jan. 8, while Brent crude fell $2.20, or 3.8%, to  $56.30.

European markets tumbled 3.3%-5.4%. German Ifo business climate index for February rose to 96.1 from 96.0 in January, to defy consensus forecasts for a fall to 95.3.

AT HOME

Benchmark indices nosedived 2% to hit 3-week lows as European markets and US futures sank on coronavirus worries as cases outside of China surged over the weekend. Sesnex slipped 806 points to settle at 40363 while Nifty finished at 11829, down 251 points. BSE mid-cap and small-cap indices fell 1.6% each. All the BSE sectoral indices ended in red with the Metal index leading the losses, down 5.7%, followed by 3.3% lower Auto and Telecom indices.

FIIs net sold stocks, index futures and stock futures worth Rs 1161 cr, 1238 cr and 990 cr respectively. DIIs were net buyers to the tune of Rs 516 cr.

Rupee depreciated 27 paise to end at 71.92/$.

OUTLOOK

Today morning, Nikkei and Shanghai are down 3% and 1% respectively while Hang Seng is little changed. US futures are up around a percent. SGX Nifty is suggesting about 50 points higher start for our market.

In yesterday's report we had said that 11990 was the immediate support to eye upon breach of which, 11908, the bottom made last week, would be the next support.

Nifty broke 11990 support and plunged all the way to 11813 before closing at 11829 and is set to open near 11900 today.

11813, the low made yesterday, which roughly coincided with the 67% retracement level of the recent 11614-12247 upmove placed at 11823, is the immediate support to eye. Below 11813, 11614, the bottom made in early February, would be the next support.

12012, the top made yesterday, would act as immediate hurdle.