17050 CONTINUES TO BE NEXT SUPPORT; 17430 CONTINUES TO BE IMMEDIATE HURDLE

 

17050 CONTINUES TO BE NEXT SUPPORT; 17430 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

Nasdaq nosedived 2.5% while S & P 500 and Dow fell 0.9% and 0.1% respectively as investors lowered exposure to growth stocks in light of Federal Reserve turning more hawkish and expectations for higher interest rates rise.

 

Weekly jobless claims came in slightly higher than expected, and housing starts for November were stronger than economists projected after declining in the prior month. The IHS Markit flash reading for its December PMI showed a slower expansion in manufacturing and services.

 

Bank of England hiked interest rate from a historic low of 0.1% to 0.25% amid mounting inflation pressureon, marking the first hike since the pandemic started. The European Central Bank further cut its bond purchases but vowed to continue its unprecedented monetary policy support for the euro zone economy into 2022. It left the benchmark refinancing rate unchanged at 0%, while the rate on its marginal lending facility remained at 0.25%.

 

US 10-year treasury yield fell 5 bps to 1.41%. Dollar index fell a third of a percent to 96. Gold climbed 1.25% yo $1799 an ounce.

 

Brent crude futures gained $1.14, or 1.5%, to settle at $75.02 per barrel while WTI crude futures rose $1.51, or 2.13%, to settle at $72.38 per barrel.

 

European markets gained 1%-1.25%.

 

AT HOME

 

After opening with gains of just under a percent, benchmark indices plunged to slip in the negative territory but rebounded in last half an hour to end higher by a fifth of a percent, snapping 4-day losing streak. Sensex settled at 57901, up 113 points while Nifty added 27 points to finish at 17248. Nifty mid-cap and small-cap indices however ended lower by 0.7% and 0.8% respectively. BSE IT index climbed 1.25%, becoming top gainer among the sectoral indices, followed by 1% higher Energy and Teck indices. Power and Utilities indices were the top losers, down 1.1% and 1% respectively.

 

FIIs net sold stocks and stock futures worth Rs 1468 cr and 793 cr respectively but net bought index futures worth Rs 828 cr. DIIs were net buyers to the tune of Rs 1533 cr.

 

Rupee appreciated 14.50 paise to end at 76.0850/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-0.9% and SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 17050, around which a trendline adjoining recent bottoms was placed, continued to be next support to eye and that 17430 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts could be held on to.

 

Nifty, after touching a high of 17379, plunged to end at 17287.

 

17050, around which a trendline adjoining recent bottoms is placed, continues to be next support to eye; 17430 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

36200, around which a trendline adjoining recent bottoms is placed, is the next support for Banknifty below which 200-DMA, placed around 35750, would be the next downside level to eye; 37160, the top made yesterday, is the immediate hurdle.