12272 ABOVE 12172; 11990 IS THE IMMEDIATE SUPPORT

12272 ABOVE 12172; 11990 IS THE IMMEDIATE SUPPORT

WORLD MARKETS

Dow ended flat while S & P 500  and Nasdaq rose 0.2% and 0.1% respectively  after digesting testimony from the Fed Chair Powell.

Powell said the central bank is “closely monitoring” the situation surrounding the ongoing coronavirus outbreak and its potential impact to China and the global economy, though he noted that it is “too early to say” how the disease could hit the U.S. economy.

China’s National Health Commission said the death toll had risen to 1,016 people with 42,638 confirmed cases. However, data from Johns Hopkins University showed the number of new confirmed cases was its lowest since late January, increasing optimism around China’s efforts to contain the outbreak.

Brent crude gained 78 cents, or 1.4%, to trade at $54.05 per barrel while WTI gained 37 cents, or 0.75%, to settle at $49.94.

European markets gained 0.6%-1%. The first estimate of U.K. fourth-quarter showed that GDP was flat quarter-on-quarter in the last three months of 2019.

AT HOME

After rising more than a percent in the initial trade, benchmark indices gave away nearly half of the gains through the session to end higher by six tenth of a percent. Sensex settled at 41216, up 236 points while Nifty added 76 points to finish at 12107. BSE mid-cap index rose 0.4% but small-cap index fell 0.2%. Except 0.2% and 0.1% lower FMCG and Telecom indices respectively, all the BSE sectoral indices ended in green with Utilities and Power indices leading the tally, up 1.7% and 1.5% respectively.

FIIs net sold stocks worth Rs 209 cr but net bought index futures and stock futures worth Rs 1404 cr and 579 cr respectively. DIIs were net buyers to the tune of Rs 345 cr.

Rupee appreciated 7 paise to end at 71.23/$.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.4% and 0.2% respectively while Shanghai is off 0.1%. SGX Nifty is suggesting about 25 points higher start for our market.

In yesterday's report we had reiterated the view that 12160, the top made last week, continued to be important immediate hurdle while 11925 continued to be immediate support.

Nifty touched a high of 12172 in the initial trade but could not sustain there and slipped to end at 12107.

12172, the top made yesterday, which roughly coincided with the 12160 resistance mentioned by us, is the immediate hurdle to eye, a crossover of which would confirm a buy on the hourly chart and would pave the way for fresh upmove. If that happens, 12272, the top made on 24th January, would be the next target.

On the way down, 11990, the bottom made on Monday, would now act as immediate support.

Retail inflation for January will be out today and is expected to show a print of 7.28% as against 7.35% in December. Industrial Production for December will also be released and expected growth here is 1.94%, up from 1.8% in November.

Hindalco will report its quarterly earnings today.

12160 CONTINUES TO BE IMMEDIATE HURDLE; 11925 IMMEDIATE SUPPORT

12160 CONTINUES TO BE IMMEDIATE HURDLE; 11925 IMMEDIATE SUPPORT

WORLD MARKETS

After starting lower on coronavirus concerns, US indices rebounded through the session to end with gains of 0.6%-1.1%, with the S & P 500 and Nasdaq hitting record highs led by solid gains in tech shares.

Brent crude slipped $1.14, or 2%, to $53.33 per barrel to hit 14-month low, while U.S. WTI fell 75 cents, or 1.5%, to settle at $49.57 per barrel, its lowest level in 13 months.

Main European markets fell 0.2%-0.3%.

AT HOME

Sensex and Nifty fell 0.4% and 0.6% respectively, extending the losing streak to second straight day. Sensex lost 162 points to settle at 40979 while Nifty finished at 12031, down 66 points. BSE mid-cap and small-cap indices fell 0.8% and 0.4% respectively, breaking 5-day winning streak. All the BSE sectoral indices ended in red with Metal and Auto indices leading the losses, down 3.1% and 2.4% respectively.

FIIs net sold stocks and index futures worth Rs 185 cr and 410 cr respectively but net bought stock futures worth Rs 344 cr. DIIs were net sellers to the tune of Rs 736 cr.

Rupee appreciated 15 paise to end at 71.30/$.

OUTLOOK

Today morning, Hang Seng and Shanghai are up 1% and 0.2% respectively, Nikkei is shut while SGX Nifty is suggesting about 40 points higher start for our markets.

In yesterday's report we had said that 12160, the top made last week, continued to be important immediate hurdle while 11925 continued to be immediate support.

Nifty, after touching a low of 11990, rebounded to close at 12031 and is set to open above 12050 today.

11925 continues to be immediate support while 12160, the top made last week, continues to be important immediate hurdle, a crossover of which is required for a fresh upmove.

Meanwhile, trading longs can be held on to with the stop-loss of 11925.

Counting for Delhi Assembly Election will be done today.

12160 CONTINUES TO BE IMMEDIATE HURDLE; 11925 IMMEDIATE SUPPORT

12160 CONTINUES TO BE IMMEDIATE HURDLE; 11925 IMMEDIATE SUPPORT

WORLD MARKETS

Dow tumbled 0.9% while S & P 500 and Nasdaq fell 0.5% each to snap four-day winning streak as worries over the coronavirus’ impact on the Chinese economy outweighed the release of stronger-than-expected U.S. jobs data.

China’s National Health Commission on Friday confirmed 31,131 cases of the deadly coronavirus in the country, with 636 deaths.

The U.S. economy added 225,000 jobs in January as against expected figure of 158,000. Wages rose 3.1% y-o-y, also topping expectations.

Brent futures lost 41 cents to $54.52 a barrel while WTI futures fell 63 cents, or 1.2%, to settle at $50.32 per barrel.

European markets fell 0.1%-0.5%.  German industrial output fell 3.5% from November in calendar-adjusted terms, well below the 0.1% rise expected. French industrial output also fell further than expected in December, tumbling 2.8% against an expectation of -0.4%.

For the week, Nasdaq soared 4% while Dow and S&P 500 rose 3% each. For the week, Brent plunged 6% while WTI fell 2.4% for its fifth straight week of losses.

AT HOME

Sensex and Nifty fell 0.4% and 0.3% respectively, breaking 4-day winning streak. Sesnex settled at 41141, down 164 points while Nifty lost 40 points to finish at 12098. BSE mid-cap and small-cap indices however ended higher by 0.4% and 0.8% respectively. BSE Realty index tumbled 2%, becoming top loser among the sectoral indices, followed by 1% lower Auto index. Healthcare and Consumer Durables indices were the top gainers, up 1.7% and 1.4% respectively.

FIIs net bought stocks and stock futures worth Rs 162 cr and 273 cr respectively but net sold index futures worth Rs 428 cr. DIIs were net sellers to the tune of Rs 179 cr.

Rupee depreciated 25 paise to end at 71.45/$.

For the week, Sensex and Nifty soared 3.7% and 3.5% respectively, breaking 2-week losing streak.

M & M's net profit plunged due to a one-time loss of Rs 601 cr but operationally, results were slightly above estimates. Revenue fell 6% y-o-y to Rs 12120, EBITDA rose 5% to Rs 1788 cr, margin improved 160 bps to 14.8% while Net profit fell 72.8% to Rs 380 cr.

Exit polls over the weekend predicted a clean sweep for Aam Aadmi Party in Delhi Assembly elections.

OUTLOOK

Latest update from China says that the death toll due to coronavirus has crossed 900 and confimed cases have topped 40000.

Today morning, Asian markets are trading with cuts of 0.6%-1% and SGX Nifty is suggesting about 30 points lower start for our market.

In Friday's report we had said that 12160, the top made Thursday, which coincided with 34-DMA as well as the 67% retracement level of the entire 12430-11614 fall, was the immediate hurdle to eye.

Nifty, after touching a high of 12155 in the initial trade, slipped to close at 12098, vindicating our view.

12160, the top made last week, continues to be important immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 12272, the top made on 24th January, would be the next target.

11925 continues to be immediate support on the hourly chart, with the stop-loss of which, positional longs can be held on to.

GAIL and Grasim will report its quarterly earnings today.

NIFTY ACHIEVES 34-DMA TARGET; 11925 IS THE IMMEDIATE SUPPORT

NIFTY ACHIEVES 34-DMA TARGET; 11925 IS THE IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 rose 0.3% each while Nasdaq gained 0.7% after China announced it will halve tariffs on a slew of U.S. products. Strong corporate earnings results and solid economic data also aided the sentiment.

China announced it will halve tariffs on U.S. imports totaling about $75 billion. Tariffs on some U.S. goods will be cut from 10% to 5%, and from 5% to 2.5% on others, which will take effect on Feb. 14

Twitter shares jumped more than 15% on its quarterly results while Bristol-Myers Squibb rose 2.3%.

On the data front, weekly jobless claims fell to a nine-month low last week, reaching 202,000.

Brent crude fell 23 cents, or 0.3%, to $55.05 per barrel, while WTI gained 20 cents, or 0.4%, to settle at $50.95 per barrel.

European markets gained 0.3%-1%. Germany’s new industrial orders in December dropped 2.1% month-on-month, ending the worst year for industrial orders since 2008.

AT HOME

Buoyed by the series of steps announced by the RBI, benchmark indices,  spiked up post the policy announcement to end with gains of four tenth of a percent, extending the winning streak to fourth straight day. Sensex settled at 41306, up 163 points while Nifty added 44 points to finish at 12133. BSE mid-cap and small-cap indices gained 0.8% and 0.5% respectively. BSE Telecom and Finance indices gained 1.9% and 1.2% respectively, becoming top gainers among the sectoral indices while Consumer Durables and IT indices were the top losers, down 1.1% and 0.8% respectively.

FIIs net sold stocks worth Rs 560 cr but net bought index futures and stock futures worth Rs 219 cr and 595 cr respectively. DIIs were net buyers to the tune of Rs 304 cr.

Rupee depreciated 2 paise to end at 71.20/$.

Hero MotoCorp's revenue and net profit beat estimates and margins improved for the third consecutive quarter.

RBI, while kept interest rate unchanged and kept the stance "Accomodative" as expected, announced series of steps intended to improve the flow of funds to boost the economy. These are as follows:

Banks will be given cash reserve ratio relief on incremental auto loans, retail housing loans and and all micro, small and medium enterprises loans given between Jan.30 and July 31.

The RBI said it will extend the one-time restructuring scheme for loans to MSMEs till Dec. 31. The recast scheme, announced in January last year, was to expire on March 31.

To ease the stress on the commercial real estate sector, borrowers facing repayment pressures because of situations beyond their control would be allowed to extend the date of commencement of commercial operations by a year. This extension would be allowed without classifying the loan account as a non-performing asset.

RBI also announced decision to give banks money via 1-3 year repos, which means banks can give the RBI government bonds and borrow money at 5.1% for one and three years.

RBI also abolished the daily variable rate reverse repo, and replaced it with a daily fixed rate repo plus a 14-day repo to coincide with the CRR cycle. This cost will compel banks to push down lending and deposit rates.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.2%-0.6% and SGX Nifty is suggesting a marginally lower start for our market.

Readers would recall that after Nifty crossed budget day high of 12017, we had given upside target of 34-DMA placed around 12150.

The benchmark yesterday touched a high of 12160 before closing at 12133, achieving 12150 target and vindicating our view.

12160, the top made yesterday, which coincides with 34-DMA as well as the 67% retracement level of the entire 12430-11614 fall, is the immediate hurdle to eye. Above 12160, 12272, the top made on 24th January, would be the next target.

Immediate support on the hourly chart has moved up to 11925, with the stop-loss of which, trading longs can be held on to.

Tata Steel will report its quarterly earnings today.

NIFTY NEARS 34-DMA TARGET; 11900 IS IMMEDIATE SUPPORT

NIFTY NEARS 34-DMA TARGET; 11900 IS IMMEDIATE SUPPORT

WORLD MARKETS

Dow and S & P 500 climbed 1.7% and 1.1% respectively while Nasdaq rose 0.4%, extending the winning streak to third straight day and S & P 500 hitting a record closing high.

News reports suggested that a research team at Zhejiang University had found a drug to treat people infected by the new coronavirus. The World Health Organization, however, said in a statement: “There are no known effective therapeutics against this 2019-nCoV.” Meanwhile, a scientist leading the U.K.’s research into a coronavirus vaccine told Sky News on Wednesday that his team had made a “significant breakthrough” by cutting a portion of the normal development time to 14 days from two to three years.

ADP and Moody’s Analytics said U.S. private payrolls rose by 291,000 in January, the biggest monthly payrolls gain in nearly five years.

Brent futures rose $1.40, or 2.6%, to $55.36 a barrel while WTI gained $1.14, or 2.3%, to settle at $50.75 per barrel, breaking 5-day losing streak.

European markets rose 0.6%-1.5%. Eurozone final PMI rose to a five-month high of 51.3 in January from December’s 50.9. Germany's service sector grew at its strongest pace in five months to rise to 54.2 from 52.9 in December.

AT HOME

Bull march continued as benchmark indices climbed 0.9%, extending the winning streak to third straight day. Sensex settled at 41142, up 353 points while Nifty added 109 points to finish at 12089. BSE mid-cap and small-cap indices gained 1.2% and 0.6% respectively. Except 0.1% lower Consumer Discretionary Goods & Services index, all the BSE sectoral indices ended in green with Metal and Telecom indices leading the tally, up 2.5% and 2.3% respectively.

FIIs net bought stocks and stock futures worth Rs 249 cr and 482 cr respectively but net sold index futures worth Rs 320 cr. DIIs were net buyers to the tune of Rs 263 cr.

Rupee appreciated 6 paise to end at 71.18/$.

India's January Markit Services PMI rose to 55.5 from 53.3 in December. Composite PMI improved to 56.3 from 53.7.

Tata Motors climbed after unveiling a series of cars and commercial vehicles at the Auto Expo 2020.

Yes Bank gained on reports that the company has roped in veteran banker Anshu Jain to assist in raising funds.

ZEEL tumbled on reports that Corporate Affairs Ministry has ordered an inspection of financials of the company following allegations of corporate governance lapses and after some independent directors quit recently.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 2% and 1.3% respectively while Shanghai is flat. SGX Nifty is suggesting about 15 points lower start for our market.

In yesterday's report we had said that 12017, the top made on the budget day, continued to be immediate hurdle, upon crossover of which, 34-DMA, placed around  12160, would be the next target.

Nifty crossed 12017 hurdle and surged all the way to 12098 before closing at 12089.

34-DMA, placed around 12150, continues to upside target/resistance to eye. Above 12150, 12272, the top made on 24th January, would be the next target.

Immediate support on the hourly chart is placed around 11900, with the stop-loss of which, trading longs can be held on to.

RBI's Monetary Policy Committee is widely expected to keep interest rate unchanged when it announces its decision today. The stance of the policy is also likely to be maintained "Accomodative".

Eicher Motors, Hero MotoCorp, Sun Pharma, Lupin and Aurobindo Pharma will report their quarterly earnings today.

NIFTY NEARS 12017 HURDLE; 11783-11750 IS THE IMMEDIATE SUPPORT ZONE

NIFTY NEARS 12017 HURDLE; 11783-11750 IS THE IMMEDIATE SUPPORT ZONE

WORLD MARKETS

US indices soared 1.4%-2.1%, building on solid gains from the previous session and recouping all the losses suffered on Friday due to worries over the coronavirus outbreak. Nasdaq hit a record, helped by 13% surge in Tesla.

Media reports suggested that China’s central bank could cut its key lending rate as well as banks’ reserve requirement ratios (RRRs) in the coming weeks to support economic growth. The report came after the People’s Bank of China unveiled liquidity injection measures to the tune of more than 1 trillion yuan on Monday. The PBOC also injected another 400 billion yuan in liquidity. The Shanghai Composite closed 1.3% higher yesterday after a massive slump on Monday.

Brent crude lost 44 cents to trade at $54.01 per barrel, while WTI shed 1% to settle at $49.61 per barrel.

European markets rose 1.6%-1.8%

AT HOME

Benchmark indices soared 2.3% each, notching highest single day gain in 4-1/2 months and recouping all the losses made on the budget day. Sesnex settled at 40789, up 917 points while Nifty added 271 points to finish at 11979. BSE mid-cap and small-cap indices climbed 1.4% and 1.3% respectively. All the BSE sectoral indices ended in green with Consumer Durables and Realty indices leading the tally, up 3.5% and 3.2% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 366 cr, 680 cr and 1677 cr respectively. DIIs were net buyers to the tune of Rs 602 cr.

Rupee appreciated 7 paise to end at 71.25/$.

Bharti Airtel reported a strong set of numbers for Q3, despite a loss of around Rs 1100 cr. Margin beat estimate and Indian arm's average revenue per user grew. Total revenue rose 3.9% to Rs 21947 cr, EBITDA was up 4.6% at Rs 9350 cr, margin improved 30 bps to 42.6%.

Titan reported largely in-line numbers. Revenue rose 9.4% y-o-y to Rs 6206 cr, EBITDA surged 25.9% to Rs 735 cr, margin improved 155 bps to 11.85% and profit rose 12.9% to Rs 470 cr.

Adani Ports' topline and bottomline beat estimates but operational performance was a miss. Revenue rose 2.8% to Rs 3336 cr, EBITDA fell 23% to Rs 1707 cr, margins contracted 1980 bps to 58.8% and net profit fell 4% to Rs 1352 cr.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.9% and SGX Nifty is suggesting about 15 points lower start for our market.

In yesterday's report we had said that 11550, the 50% retracement level of the entire 10670-12430 upmove, continued to be next support while  12017, the top made on the budget day, continued to be immediate hurdle.

Nifty soared 271 points to close at 11979 and is set to open near 11950 today.

12017, the top made on the budget day, continues to be immediate hurdle, upon crossover of which, 34-DMA, placed around  12160, would be the next target.

11783-11750, the gap created by yesterday's gap up opening, would now act as immediate support. Below 11750, 11614, the bottom made on Monday, would be the crucial support to eye.

HPCL and Cipla will report their quarterly earnings today.

NIFTY REBOUNDS FROM MAJOR SUPPORTS

NIFTY REBOUNDS FROM MAJOR SUPPORTS

WORLD MARKETS

Dow and S & P 500 rose 0.5% and 0.7% respectively while Nasdaq soared 1.3%, recovering some of the losses from the previous session’s steep sell-off.

Indices reached their session highs after ISM manufacturing index showed activity in the sector expanded as against the expectation of a contraction. However, they gave back some of day’s gains after Carnival confirmed one of its guests tested positive for coronavirus six days after leaving one of its ships.

The death toll in China from the coronavirus reached 361 on Sunday, surpassing that of the SARS virus which lasted from 2002 to 2003, while a first death outside of China was reported in the Philippines.

WTI crude fell 2.8%, or $1.45 per barrel, to $50.11 per barrel while Brent crude dropped 3.9%, or $2.21, to $54.41, both hitting their lowest levels in more than a  year.

European markets gained 0.4%-0.6%. The U.K. exited the EU at 11 p.m. on Friday and has now started an 11-month transition period in which it hopes to strike a trade deal with the bloc. Euro zone manufacturing PMI reading came in at a nine-month high of 47.9.

AT HOME

Sensex and Nifty gained 0.3% and 0.4% respectively, rebounding from steep losses suffered on Saturday and breaking 3-day losing streak. Sesnex settled at 39872, up 136 points while Nifty added 46 points to finish at 11707. BSE mid-cap index climbed 1.2% while small-cap index rose 0.1%. Except 1.8% and 1.3% lower IT and Teck indices respectively, all the BSE sectoral indices ended in green with Consumer Discretionary Goods & Services and Basic Materials indices leading the tally, up 1.9% and 1.5% respectively.

FIIs net sold stocks worth Rs 1200 cr but net bought index futures and stock futures worth Rs 406 cr and 784 cr respectively. DIIs were net buyers to the tune of Rs 1287 cr.

Rupee appreciated 2 paise to end at 71.32/$.

India's IHS Markit Manufacturing PMI rose to 55.3 in January from 52.7 in December, its highest level in nearly eight years.

TVS Motor January sales fell 16.9% y-o-y to 2.34 lakh units. Ashok Leyland sales fell 40% to 11850 units.

OUTLOOK

Today morning, Shanghai is down half a percent, Nikkei is little changed and Hang Seng is up 0.7%. SGX Nifty is suggesting about 40 points higher start for our market.

In yesterday's report we had said that 11633, the low made on Saturday, was the immediate support, upon breach of which, 11550, the 50% retracement level of the entire 10670-12430 upmove would be the next support to eye.

Nifty, after touching a low of 11614, rebounded to end at 11707 and is set to open near 11750 today.

11550, the 50% retracement level of the entire 10670-12430 upmove, continues to be next support to eye.

On the way up, 12017, the top made on the budget day, continues to be immediate hurdle.

Bharti Airtel and Titan will report their quarterly earnings today.