NIFTY RETREATS FROM THE VICINITY OF 20-WEEK MOVING AVERAGE HURDLE; 200-DMA LANDS SUPPORT AT 10746

NIFTY RETREATS FROM THE VICINITY OF 20-WEEK MOVING AVERAGE HURDLE; 200-DMA LANDS SUPPORT AT 10746

WORLD MARKETS

US indices gained 1%-1.5% after U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day cease-fire in the trade war.

Shares of General Motors, Ford and Tesla all jumped after Trump tweeted that China agreed to cut tariffs on U.S. cars sold into China.

US crude rose $2.02 or 4% to $52.95 a barrel and Brent was up $1.66 or 2.8% at $61.12.

European markets rose 1%-2.3%. Basic resources stocks — with their heavy exposure to China — jumped the most. Auto stocks too joined the party.

AT HOME

After rising more than half a percent in the initial trade, benchmark indices gave away most of the gains through the session to end just marginally higher. Sensex settled at 36241, up 46 points while Nifty added 7 points to finish at 10883. BSE mid-cap and small-cap indices however gained half a percent each. BSE Utilities and Realty indices climbed 2.7% and 2.6% respectively, becoming top gainers among the sectoral indices while Healthcare and Energy indices were the top losers, down 1.2% and 0.5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 293 cr, 401 cr and 350 cr respectively. DIIs were net sellers to the tune of Rs 806 cr.

Rupee plunged 86 paise to end at 70.45/$, suffering worst fall since August 13.

India's November manufacturing PMI rose to 2018 high of 54 Vs 53.1 in October.

TVS Motor's total sales rose 27% to 3.2 lakh units. Ashok Leyland reported 9% fall in total sales at 13121 units. M & M's tractor sales rose 13% to 25949 units.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto 0.6% and SGX Nifty is suggesting about 25 points lower start for our market.

In yesterday's report we had said that "10965, where 20-week moving average is placed, continues to be immediate upside target as well as resistance to eye."

Nifty, after touching a high of 10941 in the initial trade, retreated to end at 10883 and is set to open around lower today.

10960, where 20-week moving average is placed, continues to be immediate hurdle to eye, a crossover of which is required for a fresh upmove. If that happens, 11090, the 61.8% retracement level of the entire 11760-10004 fall, would be the next hurdle to eye.

200-DMA, placed at 10746, continues to be immediate support, with the stop-loss of which, existing longs can be held on to.