13145 IS THE IMMEDIATE HURDLE; 12850 IMMEDIATE SUPPORT

 

13145 IS THE IMMEDIATE HURDLE; 12850 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices rose 0.6%-1.3% to hit a new record on coronavirus vaccine optimism and after U.S. legislators indicated progress on economic stimulus.

 

A group of lawmakers unveiled a bipartisan $908 billion coronavirus stimulus plan  which included $288 billion for small-business relief, $16 billion for the distribution of a coronavirus vaccine and $82 billion for schools. However, Senate Majority Leader Mitch McConnell did not endorse the bipartisan plan, saying he wants to pass a “targeted relief bill” instead.

 

The ISM manufacturing reading came in at 57.5, missing a consensus estimate for 58, and below the prior reading of 59.3.

 

Meanwhile, Pfizer and BioNTech applied to the European Medicines Agency for the conditional marketing authorization of their coronavirus vaccine. If approved, immunizations could be available in Europe this month.

 

Brent crude settled 0.6% lower at $47.42 per barrel, while WTI slid 1.74% to $44.55 per barrel. Reports suggested that OPEC+ delayed talks on output policy for next year until Thursday as key players are still in disagreement on how much oil they should pump amid weak demand.

 

The dollar index fell 0.6% to 91.361, hitting 91.263, the lowest since late April 2018. Gold jumped more than 2% and silver soared over 6%.

 

The Organization for Economic Cooperation and Development (OECD)  lifted its global economic outlook and projected world real gross domestic product growth to reach pre-pandemic levels by the end of 2021.

 

Main European markets gained 0.7%-1.9%. Euro zone inflation remained in negative territory for the fourth consecutive month in November, strengthening the case for further stimulus from the ECB in December.

 

AT HOME

 

New month and the week started on a buoyant note as benchmark indices climbed 1.1% each, to scale fresh record highs on closing basis. Sensex settled at 44655, up 505 points while Nifty added 140 points to finish at 13109. Nifty mid-cap and small-cap indices rose 1% and 0.9% respectively. Except a flat FMCG index, all the NSE sectoral indices ended higher, with Realty and PSU Bank indices leading the tally, up 3.3% and 2.9% respectively.

 

FIIs net bought stocks and stock futures worth Rs 3242 cr and 192 cr respectively but net sold index futures worth Rs 482 cr. DIIs were net sellers to the tune of Rs 1043 cr.

 

Rupee appreciated 37 paise to end at 73.68/$.

 

GST collections for the month of November came in unchanged month-on-month and up 1.4% YoY at Rs 1.05 lakh cr.

 

India manufacturing PMI slipped to a 3-month low of 56.3 from 58.9 in October.

 

Hero MotoCorp November sales rose 14.4% to 5.91 lakh units. Tata Motors sales rose 21% to 49650 units. Eicher Motors' Royal Enfield sales rose 6% to 63782 units. Maruti November sales rose 1.7% y-o-y to 1.53 lk units. Bajaj Auto sold 5% higher vehicles at 4.22 lk units. Escorts ales rose 33% to 10165 units. Ashok Leyland sold 10659 units, a growth of 5%. M & M auto sales rose 3.6% to 42731 units while tractor sales surged 56% to 32726 units. TVS Motor sold3.22 lk units, a growth of 21.1%.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.1%-0.5% and SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 13145, the top made last week, was the immediate hurdle while 12790-12730 was the important support zone.

 

Nifty surged to touch a high of 13128 before closing at 13109.

 

13145 continues to be immediate hurdle, upon crossover of which, 13500 would be the next major target.

 

12850 is where a trendline adjoining recent bottoms on the hourly chart is placed, and would work as immediate support.