12152 CONTINUES TO BE IMMEDIATE HURDLE; 11930 IMMEDIATE SUPPORT

12152 CONTINUES TO BE IMMEDIATE HURDLE; 11930 IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.5%-0.7% while oil and gold fell after President Trump’s comments on the Iran conflict eased worries about further escalation of geopolitical risks in the Middle East. S & P 500 hit all-time high.

Trump said Iran appeared to be “standing down” after that nation attacked the Ain al-Asad airbase overnight. Trump also said there were no American casualties from Tuesday night’s airstrikes. However, he added the U.S. will “immediately impose additional punishing economic sanctions on the Iranian regime.”

Brent crude fell 4% to $65.54 a barrel while WTI fell 4.9% to $59.61. Gold futures for February delivery dropped 0.9% to settle at $1,560.20 per ounce.

In Europe, FTSE ended flat while DAX and CAC rose 0.7% and 0.3% respectively. German factory orders fell unexpectedly in November on the back of weak foreign demand. The Ifo Institute said that euro zone economic growth will rise to 0.3% in the fourth quarter of 2019 from 0.2% in the previous quarter.

AT HOME

After falling a percent at the open, benchmark indices recouped most of the losses through the session to end just marginally lower. Sensex settled at 40817, down 51 points while Nifty lost 27 points to finish at 12025. BSE mid-cap and small-cap indices gained 0.1% and 0.2% respectively. BSE Telecom index soared 2.4%, becoming top gainer among the sectoral indices, followed by 0.6% higher Basic Materials index. Capital Goods and Energy indices were the top losers, down 1.4% and 0.9% respectively.

FIIs net sold stocks and index futures worth Rs 516 cr and 1214 cr respectively but net bought stock futures worth Rs 548 cr. DIIs were net buyers to the tune of Rs 748 cr.

Rupee appreciated 14 paise to end at 71.69/$.

OUTLOOK

Today morning Asian markets are trading with gains of 0.5%-1.8% and SGX Nifty is suggesting about 90 points higher start for our market.

In yesterday's report we had said that 11832, the low made in December, was the next important support to eye while 12152, the top made Tuesday, was the immediate hurdle.

Nifty, after touching a low of 11929 in the initial trade, rebounded to end at 12025 and is set to open near 12100 today.

12152, the top made Tuesday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 12294, the top made in December, would be the next major hurdle.

11929, the low made yesterday, is the immediate support, upon breach of which, 11832, the low made in December, would be the next important support to eye.