13275 IS THE UPSIDE TARGET; 12980 IS IMMEDIATE SUPPORT

 

13275 IS THE UPSIDE TARGET; 12980 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and Nasdaq rose 0.3% and 0.2% respectively while S & P 500 fell 0.1%.  Indices pared gains in last half an hour on news that Pfizer expects to ship half of the Covid-19 vaccines it originally planned for this year due to supply-chain problems.

 

Jobless claims totaled 712,000 last week, compared with 787,000 a week earlier and the estimate of 780,000.

 

Brent crude futures rose 1.4% to $48.92 per barrel, while WTI futures settled 36 cents, or 0.8%, higher at $45.64 per barrel. OPEC and non-OPEC allies agreed to increase production by 500,000 barrels per day beginning in January. This will bring the total production cuts at the start of 2021 to 7.2 million bpd

 

In Europe, FTSE rose 0.4% while DAX and CAC fell 0.4% and 0.2% respectively.

 

AT HOME

 

After rising nearly three fourth of a percent at the open, benchmark indices gave away most of the gains through the session to end just marginally higher. Sensex settled at 44632, up 14 points while Nifty added 20 points to finish at 13133. Nifty mid-cap and small-cap indices however rose 0.6% each. Nifty PSU Bank index soared 4.8%, becoming top gainer among the sectoral indices, followed by 2.8% higher Media index. IT and Private Bank indices were the top losers, down 0.5% each.

 

FIIs net bought stocks, index futures and stock futures worth Rs 3637 cr, 176 cr and 534 cr respectively. DIIs were net sellers to the tune of Rs 1440 cr.

 

Rupee depreciated 10 paise to end at 73.90/$.

 

India's November Services PMI fell to 53.7 from 54.1 month-on-month while Composite PMI eased to 56.3 from 58.

 

HDFC Bank fell after RBI asked the bank to temporarily halt sourcing new credit cards and stop the launch of its digital business-generating activities planned under Digital 2.0 and other proposed business generating IT applications.

 

OUTLOOK

 

Today, Nikkei and Shanghai are down 0.4% each while Hang Seng is flat. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 13145 continued to be immediate hurdle, upon crossover of which, 13275 would be the next target.

 

Nifty touched a high 13216 in the initial trade, but eased from there to end at 13133 and is set to open above 13150 today.

 

13275 continues to be next upside target upon crossover of which, 13500 would be the next major target.

 

12980, the bottom made Wednesday, is the immediate support now, with the stop-loss of which, trading longs should be held on to.

 

RBI's Monetary Policy Committee is likely to keep policy rates unchanged when the decision is announced at 10.00 am today. However, markets would watch out for comments on growth, inflation and  liquidity.

 

The U.S. economy is expected to have added 440,000 jobs, compared 638,000 in October. The unemployment rate is estimated to have decreased to 6.7% from 6.9%.