Market Update: January 21, 2019 – Today’s action in the Markets

Market Update: January 21, 2019 – Today’s action in the Markets

FPJ Web DeskUpdated: Wednesday, May 29, 2019, 03:13 AM IST
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LATEST AFTER THE BELL: 21st January 2019

Nifty (+55, 10962):

Dalal Street rallied in Monday’s trade, joining conga line of rising global equities after a report the U.S. government may ease up on China tariffs. Reliance Industries was star performer, gaining 4.30% at Rs 1233.80. IT major Infosys too rose 1.24% at Rs 740.05.

The only negative takeaway from today’s trade was the relatively narrow breadth in terms of leadership. The market breadth too was weak. The BSE Mid-Cap index fell 0.56%. The BSE Small-Cap index fell 0.70%. PSU Banks came under pressure after Union Bank of India third-quarter profit missed street’s estimates.

The negativity could also be blamed to China’s slowest economic growth since 1990. The 6.6% growth rate for 2018 reported is the slowest annual pace that China has recorded since 1990. Also denting optimism is the month-old partial U.S government shutdown. In Europe, investors are waiting to hear British Prime Minister Theresa May’s ‘Plan B’ for Brexit which is due to be presented to parliament later in the day.

Now technically speaking, and judging by today’s price action at Dalal Street, the benchmark Nifty now needs to close above 11000 mark to fuel further optimism. Above 11000, Nifty will gear up for a big rally which should take Nifty above 11111 mark. The must watch support for Nifty from here on is at 10839 mark. Now before we sign off for the day, let’s look at major instruments.

4.00 PM GLOBAL UPDATE:

DOW Futures (-120, 24567)
NASDAQ Futures (-41, 6751)
DAX (-60, 11145)
FTSE (+16, 6984)

OIL (-0.17, $53.62)
GOLD (-5, $1278)
DOLLAR INDEX (+0.01, 96.36)
COPPER (-55, 6004)

How Asia fared today:

HANG SENG (+106, 27197)
NIKKEI (+53, 20719)
SHANGHAI (+15, 2611)

Nifty (+55, 10962)
Sensex (+192, 36579)
Bank Nifty (+77, 27533)
SGX NIFTY (-0, 10962)
USD/INR (+0.05, 71.21)

Aggressive long overnight positions not advisable after China posted slowest economic growth since 1990, slowest annual pace since 1990. Sluggish action likely as Wall Street is closed today in honor of Martin Luther King Jr. Day.

2.00 PM Update: 

Optimism at worldwide stock markets stalls a bit after China posted slowest economic growth since 1990. The 6.6% growth rate for 2018 reported Monday is the slowest annual pace that China has recorded since 1990. Also denting optimism is the month-old partial U.S government shutdown. In Europe, investors are waiting to hear British Prime Minister Theresa May’s ‘Plan B’ for Brexit which is due to be presented to parliament later in the day.

DAX (-35, 11171)
FTSE (+6, 6974)

DOW Futures (-0.83, 24604)
NASDAQ Futures (–23, 6770)

HANG SENG (+75, 27166)
NIKKEI (+53, 20719)
SHANGHAI (+15, 2611)

Nifty (+62, 10970)
Bank Nifty (+0.47%, 27587)

12.00 pm Update:

(Nifty 10963, Up 57 points):

The benchmark gave away some of its intraday gains after China posted slowest economic growth since 1990. The 6.6% growth rate for 2018 reported Monday is the slowest annual pace that China has recorded since 1990.

Earlier in morning action, buying enthusiasm was spurred by renewed hopes for progress on resolving the trade standoff between the U.S. and China.

11 am Update:

MCX Crude eyes 4000 mark.

Gold (-2, 1281). Corrective declines quite likely amidst overbought conditions.

MCX Gold (+0.15%, 32140). Hurdles at 32751. Corrective declines likely towards 38751.

Silver (+0.071, 15.328). Range bound movement quite likely. Hurdles at 16.05 mark.

MCX Silver (-0.15%, 39138) Supports at 38751 and then at 37901. Hurdles 39751.

Crude Oil (+0.18, 54.22). Positive bias. Hurdles at 57.50 mark. Buy on declines.

MCX Crude Oil (+1.01%, 3893). Eyes psychological 4000 mark.

Copper (-0.008, 2.7005). Optimism seen amidst U.S- China trade truce.

MCX Copper (-0.05%, 429.15). Buy on declines near 417-421 zone. Hurdles at 433.

10 am Update:

Nifty’s (+66, 10973).

Nifty trades with strength catching up with optimism at global stock markets. Market breadth is seen improving considerably.

Nifty on target to hit psychological 11000 mark.  Larsen bounces back in green.

What Technical Tells Us On Nifty:

Nifty’s KEY SUPPORTS: 10889/10839.

Nifty’s KEY HURDLE: 11001/11111.

Nifty’s INTRADAY RANGE: 10,921-11011.

Nifty’s OUTLOOK FOR THE DAY: Positive bias.

NIFTY’s CRUCIAL LEVELS AT  10 AM:

Nifty’s (+66, 10973).

Nifty trades with strength catching up with optimism at global stock markets. Market breadth is seen improving considerably.

Nifty on target to hit psychological 11000 mark.  Larsen bounces back in green.

What Technical Tells Us On Nifty:

Nifty’s KEY SUPPORTS: 10889/10839.

Nifty’s KEY HURDLE: 11001/11111.

Nifty’s INTRADAY RANGE: 10,921-11011.

Nifty’s OUTLOOK FOR THE DAY: Positive bias.

9.30 am Update:

(Nifty: 10911, UP 7 points):

Despite positive global cues,  the benchmark Nifty is unable to make big positive moves on the upside and  seen struggling for traction.  You could blame the negativity to WIPRO & L&T.

Stocks are again seen trading lackluster.

Nifty’s hurdles are now at 10931 and then at 11001 zone. The biggest support for Nifty in near term is at 10839.

Amongst stocks on positive side are: SUN PHARMA (+1.39%, 396) RELIANCE (+1.19%, 1198) INFY (+1.14%, 739) NTPC (+0.97%, 146) DR REDDYS LAB (+0.80%, 2618)

On the negative side are  WIPRO (-2.70%, 327) LT (-2.63%, 1283) UPL (-1.27%, 756).

9 am Update:

Wall Street will be closed on Monday on account of Martin Luther King Jr. holiday.*

DOW FUTURES (-44, 24643)

NASDAQ FUTURES (-18, 6775)

SGX NIFTY (+26, 10961)

NIKKEI (+93, 20759)

HANG SENG (+122, 27212)

SHANGHAI (+20, 2616).

STOCKS TO WATCH:

Bullish stocks: MINDTREE, NIIT TECH, COLPAL,  BATA, TITAN, DIVIS LAB, IGL, DLF, HAVELLS.

Bearish stocks: RELIANCE CAPITAL, CG POWER, REC, PFC, INDIGO, SIEMENS, BOI, IRB, UBI

SHOW ME THE MONEY: BUY DLF (CMP: 180.35). DLF is signaling a major rebound from an oversold zone on the daily charts. Key support seen at 177 zone. Key hurdles seen at 187.50. Interweek Strategy: Buy at CMP, targeting 187.50 and then at  195-199 zone. Stop below 175.

Q3 RESULTS TO TRICKLE IN:

Bulls Vs. Bears: Time to Pick a Side!!

It’s likely to be a bulls day out…

Preferred trade on Nifty (10907): Buy between 10871-10891 zone, targeting 11001 and final aggressive targets at 11111 mark  with stop at 10741.

Preferred trade on Bank Nifty (27457): Key intraday support at 27100. Confirmation of strength only above 27751. Buy at CMP, targeting  27751 and then aggressive targets at 28001-28251 zone  with stop at 26901.

8 am Update:

Market Summary:

7 am Update:

DOW (+336, 24706)

NASDAQ (+73, 7157)

SGX NIFTY (+16, 10951)

NIKKEI (+121, 20787)

HANG SENG (+43, 27135)

BOVESPA (+746, 96097)

OIL (-0.29,  $53.51)

GOLD (-1, $1282)

SUCCESSFUL INVESTING IS ANTICIPATING THE TRENDS OF:

Global: Positive.

FII: Neutral Positive.

DII: Neutral.

F&O: Positive.

‪Sentiment: Positive.

NIFTY’s  CRUCIAL LEVELS:

Nifty’s CURRENT MARKET PRICE: 10,907.

Nifty’s  SUPPORT:

Intraday: 10,871/10,839.

Medium Term: 10,601/10,333.

Long Term: 9,951.

Nifty’s  RESISTANCE:

Intraday: 11,001/11111.

Medium Term: 11,111/11,751.

Long Term: 12,001.

Nifty’s  RANGE:

Intraday: 10,875-11001.

Medium Term: 10,501-11,111.

Long Term: 9,951-11,701.

Nifty’s  OUTLOOK

Intraday: Positive.

Medium Term: Neutral.

Long Term: Positive.

Our call of the day suggests that the technicals are aggressively bullish for benchmark Nifty. Technically,  the daily charts of Nifty is depicting a  ‘Bullish Diamond’ pattern which could take the benchmark towards 11,111 mark.

Our chart of the day establishing buy positions in stocks like  MINDTREE,  DLF  &  VEDANTA  with interweek perspective.

Q3 EARNINGS TO TRICKLE IN THIS WEEK:

IMPORTANT THEMES OF THE DAY:

The biggest macro make or break event of the day will be China’s fourth quarter GDP numbers as well as investment and retail sales for December. This could be the biggest catalyst as another weak set of numbers may make investors run away from riskier emerging market equities, probably triggering a selloff.

Meanwhile, Wall Street will be closed on Monday due to the Martin Luther King Jr. holiday.

Disclaimer: LotusFunds subscribers/clients may have positions in the stocks recommended in this note. Please note that the actual subscribers may receive additional information in real time not available to the viewers of this note.

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