11700 BELOW 11802; 11950 CONTINUES TO BE IMMEDIATE HURDLE

11700 BELOW 11802; 11950 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

US market ended near the flat line, monitoring developments related to US-China trade deal.

Chinese Ministry of Commerce spokesman said that both countries are holding “in-depth” discussions about a phase one deal, but noted that the rolling back of some tariffs is key to reaching an agreement. Additionally, U.S. senators pushed for a vote on a Hong Kong rights bill as protests there escalate.

Weekly jobless claims reached 225,000 last week, their highest level since June. U.S. producer prices had their biggest gain in six months in October.

Cisco Systems dropped 7.3% on disappointing guidance.

Brent futures fell 7 cents to settle at $62.30 per barrel, while West Texas Intermediate crude futures fell 35 cents, to settle at $56.77.

European markets fell 0.1%-0.8%. German GDP grew by 0.1% in the third quarter, exceeding the -0.1% contraction expected and narrowly avoiding a technical recession. Euro zone economy grew by 0.2% q-o-q in the third quarter, in line with expectations and marking a 1.2% increase y-o-y.

AT HOME

Sensex and Nifty ended higher by 0.4% and 0.3% after a choppy session. Sensex added 170 points to settle at 40286 while Nifty finished at 11872, up 32 points. BSE mid-cap index rose 0.1% while small-cap index ended flat. BSE IT and Consumer Durables indices gained 1.1% and 0.9% respectively, becoming top gainers among the sectoral indices while Telecom index tumbled 2.8%, becoming top loser, followed by 2% lower Metal index.

FIIs net sold stocks and index futures worth Rs 562 cr and 442 cr respectively but net bought stock futures worth Rs 465 cr. DIIs were net buyers to the tune of Rs 83 cr.

Rupee appreciated 12 paise to end at 71.97/$.

OUTLOOK

Today morning, Nikkei and Hang Seng are up about seven tenth of a percent while Shanghai is little changed. SGX Nifty is suggesting about 25 points higher start for our market.

After Nifty broke 11850 support on Wednesday, in yesterday's report we had said that 11700 was the next meaningful support on the way down and had advised holding on to short positions with the stop-loss of 11950.

The benchmark, after touching a low of 11802 in the initial trade, rebounded to end at 11872 and is set to open higher today.

11802, the low made yesterday, also coincides with 20-DMA and hence is the immediate support to eye. IF that breaks, 11700, would be next major support to eye.

11950 continues to be immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

NIFTY BREAKS 11850 SUPPORT; STAY SHORT WITH THE STOP-LOSS OF 11950

NIFTY BREAKS 11850 SUPPORT; STAY SHORT WITH THE STOP-LOSS OF 11950

WORLD MARKETS

Dow and S & P 500 gained 0.3% and 0.1% respectively while Nasdaq ended marginally in the red as Disney shares surged while markets digested testimony from the Fed Chair Powell.

In his address to the Congressional Joint Economic Committee, U.S. Federal Reserve Chairman Jerome Powell said the path of the central bank’s interest rates is unlikely to change as long as the economy keeps growing.

Disney jumped 7.4% after Disney+ streaming service got more than 10 million sign-ups after launching on Tuesday.

Gains were capped after media reports suggested U.S.-China trade talks have hit a snag over agricultural purchases. The report also said Beijing is resisting requests from the U.S. to curb tech transfers as well as enforcement mechanisms.

U.S. consumer price index rose 0.4% in October the expected figure being 0.3%.

Brent futures rose 31 cents to $62.37, while WTI rose 32 cents to $57.17 per barrel.

Main European markets fell 0.2%-0.4%. U.K. inflation, at 1.5%, dipped to its lowest level in almost three years in October, down from 1.7% in September. Euro zone industrial production exceeded expectations to increase for the second consecutive month in September, rising 0.1% as output from France and the Netherlands offset declines in Germany and Italy.

AT HOME

Benchmark indices slipped six tenth of a percent to close at two-week low. Sensex settled at 40116, down 229 points while Nifty lost 73 points to finish at 11840. BSE mid-cap and small-cap indices slumped 0.8% and 1.1% respectively. BSE Metal and Realty indices were the top losers among the sectoral indices, falling 2.3% and 2% respectively while Energy index climbed 1.6%, becoming top gainer, followed by 0.4% higher Consumer Durables index.

FIIs net bought stocks worth Rs 585 cr but net sold index futures and stock futures worth Rs 172 cr and 388 cr respectively. DIIs were net sellers to the tune of Rs 890 cr.

Rupee depreciated 63 paise to end at 72.09/$.

Retail inflation accelerated to 4.62%, its highest level in 16-months, in October. Core inflation however eased to 3.5% from 4.2%.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 25 points higher start for our market.

For past couple of days we have been reiterating that 11850 was the immediate support while 12103 was the immediate hurdle.

After holding on to 11850 support on Monday, Nifty broke through this support yesterday and touched a low of 11823 before closing at 11840.

Next meaningful support will come around 11700, which earlier used to be a tough resistance.

Immediate hurdle on the hourly chart is placed around 11950, with the stop-loss of which, trading shorts can be held on to.

Bharti Airtel, ONGC and Vedanta will report their quarterly earnings today.

NIFTY REBOUNDS FROM 11850 SUPPORT

NIFTY REBOUNDS FROM 11850 SUPPORT

WORLD MARKETS

Dow ended flat while S & P 500 and Nasdaq gained 0.2% and 0.3% respectively,  led by strong gains in Disney and Facebook shares.

Disney rose more than 1% after launching its Disney+ streaming service. Facebook gained 2.6% after announcing a new payments tool that can be used through its applications.

Trump told the Economic Club of New York that China wants to make a trade deal, but offered little details on how negotiations were progressing. That came following recent conflicting comments over the possibility of scaling back tariffs as part of a potential deal between the two economic powerhouses.

European markets gained  0.5%-1.2% amid hopes that U.S. President Donald Trump will delay a decision on whether to impose tariffs on EU autos. U.K. unemployment fell to 3.8% in September, but wage growth came in weaker than expected at 3.6%. German ZEW survey indicating that economic sentiment jumped from -22.8 in October to -2.1 in November.

AT HOME

After falling about half a percent in morning session, benchmark indices recouped all the losses in noon to end little changed. Sensex settled at 40345, up 21 points while Nifty added 5 points to finish at 11913. BSE mid-cap and small-cap indices gained 0.3% and 0.2% respectively. BSE Bankex and Oil & Gas indices climbed 1.2% and 1% respectively, becoming top gainers among the sectoral indices while IT and FMCG indices were the top losers, down 0.7% and 0.6% respectively.

FIIs net bought stocks worth Rs 664 cr but net sold index futures and stock futures worth Rs 491 cr and 141 cr respectively. DIIs were net sellers to the tune of Rs 245 cr.

Rupee depreciated 16 paise to end at 71.45/$.

Inudstrial production contracted for the 2nd month in a row as IIP in September shrank by -4.3 after falling 1.1% in October, marking 8 year low.

Coal India reported better-than-expected numbers with net profit rising 14.2% y-o-y to Rs 3523 cr. Revenue fell 6.9% to Rs 20383 cr, EBITDA was down 16.5% at Rs 3611 cr and margin fell 210 bps to 17.7%.

Hindalco reported mixed set of numbers with Aluminium business missing estimates while Copper segment was better-than-expected.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.4%-1.4% while SGX Nifty is suggesting about 20 points lower start for our market.

In Monday's report we has said that that 11850 continued to be immediate support while 12103 continued to be immediate hurdle.

Nifty, after touching a low of 11853, rebounded to end at 11913, holding on to 11850 support and vindicating our view.

11850 continues to be important immediate support, a breach of which will confirm a "sell" on the hourly chart and would pave the way for further weakness. If that happens, 11700 would be the next support to eye.

12103 continues to be upside hurdle.

NIFTY APPROACHES 11850 SUPPORT; 12103 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY APPROACHES 11850 SUPPORT; 12103 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

Dow ended flat while S & P 500 and Nasdaq gained 0.3% and 0.5% respectively, notching fresh record closing high.

Stocks fell to their lows of the day before recovering after Trump said Friday morning he has not agreed to roll back existing tariffs on Chinese products.

Brent gained 26 cents to settle at $62.56 a barrel while WTI rose 9 cents to settle at a 6-week high of $57.24.

In Europe, FTSE and DAX fell 0.6% and 0.5% respectively while CAC ended flat.

Earlier, data from Chinese customs showed the country’s October exports fell 0.9% year-on-year, while imports fell 6.4%. The figures beat estimates.

For the week, US indices gained 0.9%-1.2% with the S&P 500 rising for a fifth straight week. Nasdaq extended its weekly winning streak to six while Dow posted a three-week winning streak.

AT HOME

On Friday, Sensex and Nifty tumbled nearly a percent from the top of the day in late noon trade to end with cuts of 0.9% and 0.8% respectively. Sensex settled at 40323, down 330 points while Nifty lost 103 points to finish at 11908. BSE mid-cap and small-cap indices fell 0.8% and 0.5% respectively.  BSE FMCG index slipped 1.8%, becoming top loser among the sectoral indices, followed by 1.7% lower Metal, Oil & Gas and Healthcare indices. Realty index and Bankex were the top gainers, up 1.6% and 0.6% respectively.

FIIs net bought stocks and stock futures worth Rs 932 cr and 172 cr respectively but net sold index futures worth Rs 250 cr. DIIs were net sellers to the tune of Rs 584 cr.

Rupee depreciated 32 paise to end at 71.29/$.

For the week, Sensex and Nifty gained 0.4% and 0.2% respectively, extending the winning streak to second consecutive week.

OUTLOOK

Today morning, Hang Seng and Shanghai are down 1.3% and 0.5% respectively while Nikkei is little changed. SGX Nifty is suggesting a marginally lower start for our market.

In Friday's report we had reiterated the view that 12103, the top made in June, is the next major upside target as well as resistance to eye and that 11850 continued to be immediate support.

Nifty, after touching a high of 12034, slipped to end at 11888 before closing at 11908 and is set to open marginally lower today.

11850, the low made last week, continues to be immediate support, a upon breach of which 11700 would be the next support to eye.

12103 cotinues to be upside hurdle.

Traders are advised to keep stop-loss of 11850 in longs.

Hindalco and Coal India will report their quarterly earnings today.

12103 CONTINUES TO BE UPSIDE TARGET/HURDLE; 11850 CONTINUES TO BE IMMEDIATE SUPPORT

12103 CONTINUES TO BE UPSIDE TARGET/HURDLE; 11850 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

Dow gained 0.7% while S & P 500 and Nasdaq rose 0.3% each, after US and China reportedly agreed to remove existing trade tariffs.

A ministry spokesperson for China’s Commerce Ministry said that both sides had agreed to simultaneously cancel some existing tariffs on one another’s goods. He added that both sides were closer to a so-called “phase one” trade agreement following constructive negotiations over the past two weeks. A U.S. official also said both sides agreed to the tariffs rollback, according to Reuters.

The 10-year Treasury yield surged to 1.95% from 1.81% in the previous session. This was the biggest upward move since the day U.S. President Donald Trump was elected.

Weekly jobless claims numbers came in at 211,000, down slightly from 218,000 in the previous week.

Brent rose 58 cents to settle at $62.32 while WTI crude climbed 80 cents to $57.15 a barrel.

European markets gained 0.1%-0.8%. EU said GDP for the 19-member area will grow by 1.1% in 2019, having forecast 1.2% growth in July.

AT HOME

Benchmark indices rose four tenth of a percent each, with Sensex hitting yet another record high while Nifty ended 76 point short of the record highest close of 12088 made on 3rd June. Sensex added 183 points to settle at 40653 while Nifty finished at 12012, up 46 points. BSE mid-cap and small-cap indices rose 0.7% and 0.5% respectively.  BSE Metal index was the top gainers among the sectoral indices, rising 1%, followed by 0.8% higher Realty and Consumer Durables indices. Oil & Gas and Capital Goods indices were the top losers, down 0.6% and 0.5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 927 cr, 328 cr and 190 cr respectively. DIIs were net sellers to the tune of Rs 636 cr.

Rupee appreciated 2 paise to end at 70.96/$.

UPL reported 82% YoY plunge in September quarter net profit at Rs 89 cr on the back of a one-time loss of Rs 305 cr. Revenue surged 84% to Rs 7817 cr, EBITDA climbed 83% to Rs 1539 cr and margin remained unchanged at 19.7%.

Sun Pharma reported a net profit of Rs 1065 cr as against loss of Rs 270 cr YoY. Revenue rose 17% to Rs 8123 cr, EBITDA was up 17% at Rs 1790 cr while margin were unchanged at 22%.

OUTLOOK

Rating agency Moody's has cut India's credit ratings outlook to negative from stable.

Today morning, Nikkei and Shanghai are up half a percent while Hang Seng is off 0.2%. SGX Nifty is suggesting about 40 points lower start for our market.

Just to reiterate, we have been working with upside target of 12103 after Nifty achieved 11981 target.

The benchamrk yesterday touched a high of 12021 before closing at 12012, moving towards this target.

12103, the top made in June, is the next major upside target as well as resistance to eye. Once 12103 is taken out, 12325, where an upward sloping trendline adjoining tops made in September 2018 and  June 2019 is placed, would be the next upside target/resistance to eye.

11850, the bottom made on Wednesday, continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

M & M, GAIL, Eicher Motors and Nestle will report their quarterly earnings today.

12103 IS NEXT TARGET/HURDLE; TRAIL STOP-LOSS TO 11850

12103 IS NEXT TARGET/HURDLE; TRAIL STOP-LOSS TO 11850

WORLD MARKETS

S & P 500 rose 0.1%, Dow ended flat while Nasdaq fell 0.3% yesterday on uncertainty over US-China tade deal.

Reports suggested US President Trump and Chinese leader Xi Jinping likely won’t meet to sign a trade deal until December as the two sides still need to decide on the terms and a venue.

Brent crude fell $1.22, or 1.9%, to $71.74 a barrel while WTI crude lost 88 cents, or 1.5%, to settle at $56.35 a barrel.

European markets gained upto 0.3%. IHS Markit PMI for the euro zone rose to 50.6 in October from 50.1 in September. Germany remained inside contraction territory, while France outperformed its peers to reach a two-month high of 52.6.

AT HOME

Sensex and Nifty gained 0.6% and 0.4% respectively, with Sensex hitting fresh record closing high while Nifty closed at the highest level since  4th June. Sensex added 221 points to settle at 40469 while Nifty finished at 11966, up 49 points. BSE mid-cap index gained 0.2% but small-cap index lost 0.4%. BSE Realty index and Bankex were the top gainers among the sectoral indices, rising 2.6% and 1.4% respectively while Consumer Durables index nosedived 5.3%, becoming top loser, followed by 2.7% lower Telecom index.

FIIs net bought stocks and index futures worth Rs 1011 cr and 296 cr respectively but net sold stock futures worth Rs 947 cr. DIIs were net sellers to the tune of Rs 1117 cr.

Rupee depreciated 29 paise to end at 70.98/$.

Government yesterday announced setting up an AIF worth Rs 25000 cr for all stuck real estate projects.

Titan tumbled after lowering its jewellery segment revenue guidance to 11-13% for the second half of the ongoing financial year from 20% earlier.

Cipla surged after quarterly results beat estimates on all counts. Net profit rose 25% YoY to Rs 471.3 cr, Revenue rose 9.6% to Rs 4396 cr, EBITDA went up 29.5% to Rs 909.5 cr and margin expanded 320 bps to 20.7%.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally higher start for our market.

For past couple of days we have been mentioning that 11981, the top made in July, is the immediate hurdle, upon decisive crossover of which, 12103 would be next target. We had also advised raising stop-loss in long position to 11835.

Yesterday, Nifty, after touching a low of 11850, rebounded sharply to touch a high of 12002, and then eased a bit to to end at 11966.

12103, the top made in June, is the next major upside target as well as resistance to eye.

11850, the low made yesterday, is now the immediate support, with the stop-loss of which, trading longs should be held on to.

BPCL, HPCL, Sn Pharma, Powergrid and UPL will report their quarterly earnings today.

11981 CONTINUES TO BE IMMEDIATE HURDLE; 11835 NEAREST SUPPORT

11981 CONTINUES TO BE IMMEDIATE HURDLE; 11835 NEAREST SUPPORT

WORLD MARKETS

US indices ended little changed, tracking developments on U.S.-China trade as they work toward reaching a deal.

Reports suggested that China is pushing U.S. President Donald Trump to remove more tariffs on about $125 billion worth of Chinese goods imposed in September as part of the “phase one” trade deal.

Meanwhile, the ISM non-manufacturing index came in at 54.7, topping estimated figure of 53.5. Data from Commerce Department showed that the U.S. trade deficit with its global partners contracted to $52.5 billion in September.

Earlier, China’s yuan currency surged past the symbolic 7 per dollar mark for the first time since August as markets became increasingly optimistic about the prospect of a trade deal.

European markets saw gains of upto 0.4%. UK services PMI edged up to 50.0 in October from 49.5 in September.

AT HOME

Sensex and Nifty fell 0.1% and 0.2% respectively, breaking seven-day winning streak. Sensex settled at 40248, down 53 points while Nifty lost 24 points to finish at 11917. BSE mid-cap and small-cap indices tumbled 1.1% and 0.8% respectively. Except 1.5% and 0.3% higher Telecom and FMCG indices respectively, all the BSE sectoral indices ended in red with Consumer Durable and Healthcare indices leading the losses, down 1.3% and 1% respectively.

FIIs net bought stocks worth Rs 473 cr but net sold index futures and stock futures worth Rs 114 cr and 23 cr respectively. DIIs were net sellers to the tune of Rs 1594 cr.

Rupee appreciated 8 paise to end at 70.69/$.

India's Services PMI rose to 49.2 in October from 48.7 in September. Composite PMI however fell to 49.6 from 49.8.

Titan missed estimates while reporting September quarter results. The company also lowered its Jewellery Segment growth guidance from 20% to  11-13%.

Tech Mahindra reported better-than-expected quarterly numbers. Dollar revenue rose 3.2% Q-o-Q while Constant currency revenue growth stood at 4.1%. Rupee revenue rose 4.8% to Rs 9070 cr, EBITDA was up 16.8% at Rs 1159 cr, Margin expanded 130 bps to 12.8% and net profit rose 17.2% to Rs 1124 cr.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 25 points lower start for our market.

In yesterday's report we had reiterated the view that upon decisive crossover of 11981 hurdle, 12103, the top made in June, would be the next big target/resistance to eye and had advised trailing stop-loss to 11835 in trading longs.

The benchmark, after touching a high of 11979 in the initial trade, slipped to 11861 before closing at 11917 and is set to open around 11900 today.

11981, the top made in July, continues to be immediate hurdle, a decisive crossover of which is required for a fresh upmove. If that happens, 12103, the top made in June, would be the next big target/resistance to eye.

11835 continues to be immediate support, with the stop-loss of which, long positions can be held on to.

Tata Steel, Cipla and Lupin will report their quarterly earnings today.