12158 CONTINUES TO BE IMMEDIATE HURDLE; 20-DMA SUPPORT AT 11975

12158 CONTINUES TO BE IMMEDIATE HURDLE; 20-DMA SUPPORT AT 11975

WORLD MARKETS

US markets ended with cuts of 0.9%-1.1% after digested disappointing manufacturing data along with the latest trade news.

The ISM Manufacturing PMI dipped to 48.1 in November. That’s below an estimate of 49.4.

Sentiment was also dented after President Trump said China still wants to make a deal on trade, “but we’ll see what happens.” Trump also said he will restore tariffs on metal imports from Brazil and Argentina.

Brent futures rose 0.7% to $60.92 a barrel while WTI crude rose 1.4% to settle at $55.96 a barrel on hints the OPEC and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand.

In Europe CAC and DAX nosedived 2% each while FTSE fell 0.8%. Euro zone manufacturing activity shrank for the 10th month in a row in November, official statistics showed today. However, IHS Markit reported the worst may now be over for the bloc’s battered factories.

AT HOME

It was a day of consolidation as benchmark indices ended little changed after coming off from the highs touch in the initial trade. Sensex settled at 40802, up 8 points while Nifty lost 8 points to finish at 12048. Nifty mid-cap and small-cap indices fell 0.7% and 0.9% respectively. BSE Telecom and Energy indices climbed 2.6% and 1.3% respectively, becoming top gainers among the sectoral indices while Auto and IT indices were the top losers, down 0.9% and 0.8% respectively.

FIIs net sold stocks and index futures worth Rs 1731 cr and 307 cr respectively but net bought stock futures worth Rs 2022 cr. DIIs were net buyers to the tune of Rs 754 cr.

Rupee appreciated 9 paise to end at 71.65/$.

India's November Nikkei Manufacturing PMI came in at 51.2, up from 50.6 in October.

TVS Motor reported 16.7% y-o-y dip in November sales at 2.66 lk units. Hero MotoCorp sold 5.16 lk units, a degrowth of 15.3%. Ashok Leyland sales fell 22% to 10175 units.

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.3%-1.4% and SGX Nifty is suggesting about 20 points lower start for our market.

In yesterday's report we had said that 11965, where 20 DMA as well as a trendline adjoining recent bottoms on the hourly chart was placed, was the next support to eye while 12158, the top made last week, was the immediate hurdle.

Nifty, after touching a high of 12137 in the initial trade, slipped to end at 12048.

20-DMA, which has now moved up to 11975, continues to be immediate support to eye. If that gets breached. 11883, the bottom made on 22nd November, would be the next support to eye.

12158, the top made last week, continues to be immediate hurdle.