12025, 12246 ARE UPSIDE LEVELS; 11820-11790 IS THE SUPPORT ZONE

 

12025, 12246 ARE UPSIDE LEVELS; 11820-11790 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

US indices rose 0.3%-0.5% on optimism over a stimulus deal.

 

House Speaker Nancy Pelosi, in a media interaction, said she was “optimistic” about a potential aid deal.

 

Meanwhile, White House Chief of Staff Mark Meadows said that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have made “good progress” on stimulus talks, but added that they “still have a ways to go” before an agreement is reached.

 

Netflix shares slipped 6% in after hours trading after the company missed earnings estimates, and reported fewer-than-expected subscriber additions. Snap however jumped more than 23% after the company reported a surprise earnings beat.

 

Brent crude futures gained 20 cents to $42.82 a barrel while WTI crude futures settled 63 cents, or 1.5%, higher at $41.46 per barrel.

 

In Europe, FTSE rose 0.1% while DAX and CAC fell 0.9% and 0.3% respectively. Number of daily new infections reached a record high in Europe Monday.

 

AT HOME

 

Sensex and Nifty rose 0.3% and 0.2% respectively, extending the winning streak to third straight day. Sensex settled at 40544, up 112 points while Nifty added 23 points to finish at 11896. BSE mid-cap and small-cap indices rose 0.5% and 0.3% respectively, also rising for the third consecutive day. BSE Realty and Telecom indices climbed 3.8% and 2.6% respectively, becoming top gainers among the sectoral indices while Oil & Gas index was the top loser, down 1.3%, followed by 1% lower Energy and Power indices.

 

FIIs net bought stocks worth Rs 1585 cr but net sold index futures and stock futures worth Rs 285 cr and 401 cr respectively. DIIs were net sellers to the tune of Rs 1633 cr.

 

Rupee depreciated 9 paise to end at 73.46/$.

 

OUTLOOK

 

Today morning, except marginally lower Shanghai, other Asian markets are trading with gains of 0.4%-1.1% with Hang Seng on the top. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 11905 continued to be immediate hurdle, upon crossover of which, 12025, the top made last week, would be the next target/resistance to eye.

 

Nifty crossed 11905 hurdle and touched a high of 11949 but slipped from there to end at 11896. The benchmark is set to open near 11950 today.

 

12025, the top made last week, is the next target/resistance to eye. Upon crossover of 12025, 12246, the top made in February, would be the next target to eye.

 

11820-11790, the gap created by Monday's gap-up opening, would act as the support zone.

 

Meanwhile, trading longs can be held on to with the stop-loss of 11790.

 

Bajaj Finance and Ultratech Cement will report their quarterly earnings today.

 

12025 ABOVE 11905; 11618 CONTINUES TO BE THE SUPPORT

 

12025 ABOVE 11905; 11618 CONTINUES TO BE THE SUPPORT

 

WORLD MARKETS

 

US indices plunged 1.4%-1.6% on lingering coronavirus concerns and awaiting deal on fresh stimulus as Tuesday deadline approaches.

 

Spokesman of House Speaker Nancy Pelosi said that Pelosi and Treasury Secretary Steven Mnuchin “continued to narrow their differences” in a Monday afternoon phone call to discuss another stimulus package. Tuesday is the deadline to reach an agreement before the Nov. 3 election.

 

IBM fell 3% in extended trading after the company reported its third-straight quarter of declining revenue.

 

Brent crude fell 22 cents to $42.71 a barrel. WTI crude futures settled 5 cents, or 0.1%, lower at $40.83 per barrel.

 

European markets eased 0.1%-0.6%. Italy announced more measures to curb a second wave of infections Sunday, including restricted opening times for restaurants and limits on public gatherings.

 

AT HOME

 

Sensex and Nifty climbed 1.1% and 0.9% respectively, building on Friday's pullback. Sensex settled at 40431, up 438 points while Nifty added 110 points to finish at 11873. BSE mid-cap and small-cap indices rose 0.6% and 0.4% respectively.  BSE Bankex and Finance indices soared 3.4% and 2.6% respectively, becoming top gainers among the sectoral indices while Auto and Healthcare indices were the top losers, down 1.1% and 0.9% respectively.

 

FIIs net bought stocks and index futures worth Rs 1657 cr and 141 cr respectively but net sold stock futures worth Rs 645 cr. DIIs were net sellers to the tune of Rs 1622 cr.

 

Rupee depreciated 3 paise to end at 73.37/$.

 

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.1%-0.4% and SGX Nifty is suggesting around 20 points lower start for our market.

 

In yesterday's report we had said that 11905 continued to be immediate hurdle on the hourly chart, a crossover of which is required for a further upmove.

 

Nifty touched a high of 11898 before closing at 11873 and is set to open near 11850 today.

 

11905 continues to be immediate hurdle, upon crossover of which, 12025, the top made last week, would be the next target/resistance to eye.

 

11618, the 33% retracement level of the recent 10790-12025 upmove, continues to be support to eye.

 

HUL will report its quarterly earnings today.

11905 CONTINUES BE IMMEDIATE HURDLE; 11618 IMMEDIATE SUPPORT

 

11905 CONTINUES BE IMMEDIATE HURDLE; 11618 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow rose 0.4%, S & P 500 ended flat while Nasdaq fell 0.4% on Friday.

 

U.S. retail sales jumped 1.9% in September, topping estimate of 0.7% rise. Excluding autos, sales were up 1.5%, again better than a 0.4% estimate.

 

Treasury Secretary Steven Mnuchin said Thursday that the White House won’t let differences over funding targets for Covid-19 testing derail stimulus talks with top Democrats. Later, President Trump said that he would raise his offer for a stimulus package above his current level of $1.8 trillion. House Democrats have passed a $2.2 trillion bill.

 

Brent crude futures fell 23 cents to $42.93 a barrel, and WTI crude futures dropped 8 cents to settle at $40.88 a barrel.

 

European markets gained 1.5%-2%. U.K. Prime Minister Boris Johnson said he would seek a no-deal Brexit unless there was a fundamental change of approach from the European Union.

 

For the week, US indices managed to end higher by 0.1%-0.8% but European markets fell 0.2%-1.6%. In Asia, Nikkei and Nifty fell 0.9% and 1.3% respectively while Shanghai and Hang Seng rose 1.1% and 2%.

 

AT HOME

 

Sensex and Nifty rose 0.6% and 0.7% respectively, recouping nearly a fourth of Thursday's mammoth losses. Sensex settled at 39982, up 254 points while Nifty added 82 points to finish at 11762. BSE mid-cap and small-cap indices rose 1% each. Except 0.8% lower Energy index, all the BSE sectoral indices ended higher, with Metal and Realty indices leading the tally, up 3.7% and 2.6% respectively.

 

FIIs net sold stocks and index futures worth Rs 480 cr and 42 cr respectively but net bought stock futrues worth Rs 139 cr. DIIs were net sellers to the tune of Rs 430 cr.

 

Rupee appreciated 4 paise to end at 73.34/$.

 

For the week, Sensex and Nifty fell 1.3% each, snapping two-week winning streak.

 

HDFC Bank reported mixed set of quarterly results. NII rose 16.7% to Rs 15776 cr while Net Profit was up 18.4% at Rs 7513 cr. Gross NPA ratio improved 28 bps q-o-q to 1.08% while net NPA ratio fell 16 bps to 0.17%. Net Interest Margin however dipped to 4.1%, hitting 16 quarter low.

 

OUTLOOK

 

China's Q3 GDP growth has come in at 4.9% y-o-y, which is lower than the expected growth of 5.2%. September Retail sales 3.3%, beating estimate of 1.8% rise. September industrial production rose 6.9%.

 

Today morning, Asian markets are trading with gains of 0.6%-1.6% and SGX Nifty is suggesting around 70 points higher start for our market.

 

In Friday's report we had said that 11618, the 33% retracement level of the recent 10790-12025 upmove, which also coincides with the immediate previous top on the daily chart made on 16th September, is the next support to eye. We had also said that 11905 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

Nifty, after touching a low of 11667 in the morning, recovered to end at 11762 and is set to open near 11850 today.

 

11905 continues to be immediate hurdle on the hourly chart, a crossover of which is required for a further upmove. If that happens, 12025, the top made last week, would be the next target/resistance to eye.

 

11618, the 33% retracement level of the recent 10790-12025 upmove, which also coincides with the immediate previous top on the daily chart made on 16th September, continues to be support to eye.

 

Britannia and ACC will report their quarterly earnings today.

 

11618 IS THE DOWNSIDE SUPPORT; 11905 IS IMMEDIATE HURDLE

 

11618 IS THE DOWNSIDE SUPPORT; 11905 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

After falling more than a percent in the initial trade, Dow and S & P 500 recouped most of the losses to end just marginally lower. Nasdaq fell 0.5%. The initial dip was on the back of fading hope for a U.S. coronavirus stimulus deal and surge in coronavirus infections across Europe.

 

Weekly jobless claims stood at 898,000, higher than a Dow Jones estimate of 830,000. Manufacturing activity in New York fell more than anticipated.

 

Brent futures fell 25 cents, or 0.6%, to $43.06 per barrel, while WTI crude settled 8 cents, or 0.19%, lower at $40.96 per barrel.

 

Dollar index rose 0.4% to 93.78.

 

European markets slipped 1.7%-2.8%. The French government declared a public health state of emergency while U.K announced stricter coronavirus measures in London.

 

AT HOME

 

Benchmark indices nosedived nearly two and a half percent, suffering the worst fall in 3-weeks, snapping 10-day winning streak and wiping out gains made after 6th of this month. Sensex settled at 39728, down 1066 points while Nifty lost 290 points to finish at 11680. BSE mid-cap and small-cap indices fell 1.8% and 1.4% respectively. All the BSE sectoral indices ended in red with Telecom index and Bankex leading the losses, down 3.5% and 3.3% respectively.

 

FIIs net sold stocks and index futures worth Rs 604 cr and 107 cr respectively but net bought stock futures worth Rs 222 cr. DIIs were net sellers to the tune of Rs 808 cr.

 

Rupee depreciated 8 paise to end at 73.38/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had reiterated the view that 12022, the top made Monday, continued to be immediate hurdle, while 11740 continued to be immediate support, with the stop-loss of which, long positions could be held on to.

 

Nifty, after touching a high of 12025 in the initial trade, reversed to break 11740 support and fell further to 11661 before closing at 11680. The benchmark is set to open near 11750 today.

 

11618, the 33% retracement level of the recent 10790-12025 upmove, which also coincides with the immediate previous top on the daily chart made on 16th September, is the next support to eye. If 11618 breaks, 11475, where 34-DMA is placed, would be the important support to eye.

 

11905 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

HCL Tech will report its quarterly results today.

12246 ABOVE 12022; 11740 CONTINUES TO BE IMMEDIATE SUPPORT

 

12246 ABOVE 12022; 11740 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.6%-0.8%, extending the losing streak to second straight day, on uncertainty surrounding the aid talks.

 

Treasury Secretary Steven Mnuchin said reaching a coronavirus stimulus deal before the election would be difficult as Democrats and Republicans remain far apart on certain issues.

 

Quarterly results from Goldman Sachs and Bank of America’s topped market expectations. However, Wells Fargo and United Airlines fell short of estimates.

 

Brent crude futures rose 49 cents, or 1.2%, to $42.94 a barrel while WTI futures settled 84 cents, or 2.1%, higher at $41.04 per barrel.

 

In Europe, DAX rose 0.1% while FTSE and CAC fell 0.6% and 0.1% respectively.

 

AT HOME

 

After falling nearly a percent, Sensex and Nifty saw a sharp rebound in late noon trade to not only recoup all the losses but also end higher by 0.4% and 0.3% respectively. Nifty mid-cap index however fell 0.2%, extending the losing streak to fourth straight day, while small-cap index rose 0.3%, snapping five-day losing streak. BSE Finance index and Bankex climbed 1.7% and 1.6% respectively, becoming top gainers among the sectoral indices while Utilities and Power indices were the top losers, down 1.7% and 1.6% respectively.

 

FIIs net bought stocks worth Rs 822 cr but net sold index futures and stock futures worth Rs 714 cr and 630 cr respectively. DIIs were net sellers to the tune of Rs 1276 cr.

 

Rupee appreciated 5 paise to end at 73.30/$.

 

Supreme Court yesterday asked the central government to implement its decision to waive “interest on interest" at the earliest and adjourned the hearing to 2nd November.

 

Infosys reported strong Q2 results, announced record deal wins and also revised the full year guidance upwards. Dollar revenue grew 6.1% while constant currency growth stood at 4%. Margins improved 270 bps to 25.35%. The company upped FY21 revenue growth guidance to 2-3% from 0%-2% and operating margin guidance to 23-24% from 21%-23%.

 

India’s Wholesale Price Index (WPI) inflation for September rose to 1.32% from 0.16% in August.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-1% but SGX Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 12022, the top made Monday, continued to be immediate hurdle, while 11740 continues to be immediate support, with the stop-loss of which, long positions should be held on to.

 

Nifty, after touching a low of 11822, rebounded smartly to end at 11971.

 

12022, the top made Monday, continues to be immediate hurdle, upon crossover of which, 12246, the top made in February, would be the next target to eye.

 

11740 continues to be immediate support, with the stop-loss of which, long positions should be held on to.

11740 CONTINUES TO BE IMMEDIATE SUPPORT; 12022 IMMEDIATE HURDLE

 

11740 CONTINUES TO BE IMMEDIATE SUPPORT; 12022 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.6% each while Nasdaq eased 0.1%, all snapping four-day winning streak, on the back of negative coronavirus treatment developments.

 

U.S. regulators paused Eli Lilly’s trial of a coronavirus antibody treatment due to safety concerns. That came after Johnson & Johnson’s coronavirus vaccine trial was paused after a participant had an unexplained illness.

 

Senate Majority Leader Mitch McConnell said the Senate will vote on a limited stimulus bill later this month, which will be “targeted relief for American workers, including new funding” for Paycheck Protection Program small business loans.

 

Meanwhile, earnings season kicked off with both JPMorgan Chase and Citigroup reporting better-than-expected results.

 

Brent crude futures rose 72 cents, or 1.7%, to $42.44 a barrel while WTI crude futures settled 77 cents, or 2%, higher at $40.20 per barrel.

 

Earlier, data from China showed that the country’s exports and imports of goods hit a record in yuan-denominated terms in September.

 

European markets fell 0.5%-1%. Germany’s ZEW survey of economic sentiment fell by more than expected in October.

 

The IMF revised its forecasts for the global economy slightly upward to -4.4% from -4.9% made in June,  after advanced economies performed above expectations in the second and third quarters. However, the Fund also warned that the recovery would likely be a long and uneven process.

 

AT HOME

 

It was a day of consolidation as benchmark indices ended little changed after a rangebound but choppy session. Sensex settled at 40625, up 31 points while Nifty added 3 points to finish at 11934. BSE mid-cap and small-cap indices fell 0.3% and 0.1% respectively, extending the losing streak to third and fifth day respectively. BSE Energy and IT indices climbed 1.5% each, becoming top gainers among the sectoral indices while Healthcare and Consumer Durables indices were the top losers, down 1.2% each.

 

FIIs net bought stocks worth Rs 832 cr but net sold index futures and stock futures worth Rs 59 cr and 931 cr respectively. DIIs were net sellers to the tune of Rs 1674 cr.

 

Rupee depreciated 8 paise to end at 73.35/$.

 

Wipro's July-September quarter dollar revenue and margin came in better-than-expectation. IT services dollar revenue rose 3.7% q-o-q to $1992 mn, constant currency revenue was up 2%, rupee revenue rose 1.2% to Rs 14768 cr, EBIT rose 1.9% to Rs 2835 cr and margin rose 20 bps to 19.2%. The company also announced Rs 9500 cr buyback at Rs 400 per share. The company guided for 1.5%-3.5% revenue growth for Q3.

 

The Supreme Court yesterday rescheduled the hearing of interest on interest case to Wednesday.

 

IMF pegged India's FY21 GDP contraction at 10.3%, up from 4.5% contraction projected in June and sharper than the 9.5% degrowth projected by the RBI.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-0.5% and SGX Nifty is suggesting around 60 points lower start for our market.

 

In yesterday's report we had said that 12022, the top made Monday, was the immediate hurdle and had advised trailing stop-loss in long positions to 11740.

 

Nifty, after touching a high of 11988, slipped to end at 11934 and is set to open below 11900 today.

 

12022, the top made Monday, continues to be immediate hurdle, upon crossover of which, 12246, the top made in February, would be the next target to eye.

 

11740 continues to be immediate support, with the stop-loss of which, long positions should be held on to.

 

Infosys will report its quarterly earnings today.

12246 ABOVE 12022; 11740 IS THE IMMEDIATE SUPPORT

 

12246 ABOVE 12022; 11740 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices climbed 0.9%-2.6%, with Nasdaq on the top, as Apple shares surged.

 

Apple soared 6.4% ahead of Tuesday's event, where the company is expected to launch its first ever 5G iPhone. 

 

Trump administration, over the weekend, called on Congress to pass a smaller $1.8 billion coronavirus relief bill as negotiations on a bigger package continue to run into roadblocks. However, House Speaker Nancy Pelosi said the proposition has insufficient offers on healthcare issues.

 

Brent crude fell $1.21, or 2.8%, to $41.64 a barrel while WTI fell 2.9%, or $1.17, to settle at $39.43 per barrel.

 

In Europe, except 0.2% lower FTSE, other markets gained 0.6%-0.7%. UK announced a three-tier system of restriction, closing pubs and bars in 'very high' tiers.

 

AT HOME

 

After rising nearly a percent at the open, benchmark indices gave away most of the gains through the session to end just marginally higher. Sensex settled at 40593, up 84 points while Nifty added 16 points to finish at 11930. BSE mid-cap and small-cap indices fell 0.5% and 0.4% respectively, extending their underperformance. BSE Metal index nosedived 3.7%, becoming top loser among the sectoral indices followed by 1.8% lower Telecom index. IT and Teck indices were the top gainers, up 1.5% and 1% respectively.

 

FIIs net bought stocks worth Rs 615 cr but net sold index futures and stock futures worth Rs 701 cr and 948 cr respectively. DIIs were net sellers to the tune of Rs 1029 cr.

 

Rupee depreciated 14 paise to end at 73.27/$.

 

Finance Minister Nirmala Sitharaman announced measures to boost demand and capital expenditure.

 

Measure announced to boost demand included interest free festival adavance of Rs 10,000 to all central government employees and LTC Cash Voucher Scheme, under which, government employees can opt to receive cash amounting to leave encashment and 3 times ticket fare, to buy items which attract GST of 12% or more.

 

For boosting Capex, the FM announced 50-year interest free loan of Rs 12,000 cr to states, which can be used for expenditure on roads, defence, infrastructure, water supply, urban development, defence infrastructure and domestically produced capital equipment.

 

September CPI rose to 7.34% from 6.69% in August. August IIP showed a contraction of 8% as against contraction of 10.4% in July.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are down 0.2% and 0.5% respectively while trading in Hong Kong markets is paused due to typhoon. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 12000 continued to be immediate upside target, upon crossover of which 12246, the top made in February, would be the next target to eye.

 

Nifty, after touching a high of 12022 in the initial trade, achieving 12000 target, from where it slipped to end at 11930.

 

12022, the top made yesterday, is the immediate hurdle, upon crossover of which, 12246, the top made in February, would be the next target to eye.

 

Immediate support on the hourly chart has moved up to 11740, with the stop-loss of which, long positions can be held on to.