12118-12294 CONTINUES TO BE IMMEDIATE RANGE

12118-12294 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US and European markets were shut yesterday for the New Year's Day.

The People’s Bank of China lowered the reserve requirement ratio for banks by 50 basis points with effect from Jan. 6

AT HOME

Benchmark indices ended modestly higher on the first trading day of the new year. Sensex added 52 points to settle at 41306 while Nifty finished at 12182, up 14 points. BSE mid-cap and small-cap indices gained 0.2% and 0.6% respectively. BSE Power and Utilities indices climbed 1.8% and 1.4% respectively, becoming top gainers among the sectoral indices while Consumer Durables index tumbled 1.4%, becoming top loser, followed by 0.5% lower Auto index.

FIIs net sold stocks and stock futures worth Rs 59 cr and 21 cr respectively but net bought index futures worth Rs 292 cr. DIIs were net buyers to the tune of Rs 208 cr.

Rupee appreciated 16 paise to end at 71.22/$.

November GST collected in December stood at Rs 1.03 lk cr.

Maruti Suzuki's December sales rose 3.9% y-o-y to 1.33 lk units. M & M total auto sales fell 1% to 39230 units while tractor sales rose 3% to 17990 units. Escorts saw 10.5% fall at 4114 units. SML Isuzu reported a decline of 32.8% at 549 units. Tata Motors registered a decline of 13.8% at 46903 units. Eicher Motors' commercial vehicle sales dipped 19% to 5042 units.

OUTLOOK

Today, Nikkei is shut while Shanghai and Hang Seng are trading with gains of 0.5% and 0.7% respectively. SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had reiterated the view that 12294, the top made on 20th December, continued to be immediate hurdle, while 12118, the bottom made last week, continued to be immediate support.

Nifty, after touching a high of 12222 in the initial trade, slipped to end at 12182.

12118, the bottom made last week, continues to be immediate support, upon breach of which, 34-DMA, placed around 12060, would be the next support.

12294, the top made on 20th December, continues to be immediate hurdle, a crossover of which is required for a fresh upmove.