Friday, November 22, 2019

12103 ABOVE 11938; 11910 CONTINUES TO BE IMMEDIATE SUPPORT


12103 ABOVE 11938; 11910 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell about a fifth of a percent, extending the losing streak to third straight day, after digesting the latest reports surrounding the U.S.-China trade war.

The Wall Street Journal reported that Chinese Vice Premier Liu He, during a phone call thought to have been made late last week, had invited U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to Beijing to sit down for further talks. 
Meanwhile, the South China Morning Post said both countries are on the “doorstep” of reaching a deal, citing a source close to the Trump administration.

Brent futures gained 2.5%, to settle at $63.97 a barrel, while West Texas Intermediate crude futures surged to a two-month high, gaining 2.8% to settle at $58.58, on reports that OPEC and its allies are likely to extend output cuts until mid-2020.

European markets fell 0.2%-0.3%.  A flash estimate released by the European Commission showed consumer confidence in the euro zone rose slightly between October and November.

AT HOME

Sensex and Nifty ended lower by 0.2% and 0.3% respectively after a choppy session to break two-day winning streak. Sensex settled at 40575, down 76 points while Nifty lost 31 points to finish at 11968. BSE mid-cap and small-cap indices slipped 0.7% and 0.4% respectively. BSE Metal index tumbled 2.2%, becoming top loser among the sectoral indices, followed by 2.1% lower Oil & Gas and Telecom indices. Realty and Capital Goods indices were the top gainers, up 0.4% and 0.3% respectively.

FIIs net bought stocks worth Rs 5024 cr but net sold index futures and stock futures worth Rs 162 cr and 1205 cr respectively. DIIs were net sellers to the tune of Rs 248 cr.

Rupee appreciated 5 paise to end at 71.76/$.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.8% and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 12038, the top made Wednesday, was the immediate hurdle, upon crossover of which, 12103, the top made in June, would be next upside target/resistance to eye.We had also said that immediate support on the hourly chart had moved up to 11910, with the stop-loss of which, trading longs could be held on to.

Nifty, after touching a high of 12028 in the initial trade, slipped to end at 11968 and is set to open little changed today.

12038 continues to be immediate hurdle, upon crossover of which, 12103, the top made in June, would be next upside target/resistance to eye.

11910 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

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