17050 IS THE DOWNSIDE SUPPORT; 17430 IMMEDIATE HURDLE

 

17050 IS THE DOWNSIDE SUPPORT; 17430 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices soared 1.1%-2.2% after the Federal Reserve said it will accelerate the reduction of its monthly bond purchases and signaled three interest rate increases in 2022.

 

The U.S. central bank will be buying $60 billion of bonds each month starting January, half the level prior to the November taper and $30 billion less than it had been buying in December.

 

November’s retail sales rose by 0.3%, lower than the expected 0.8% rise.

 

US 10-year treasury yield rose about 2 basis points to 1.463%. Dollar index, after hitting a high of 96.906, reversed to end 0.24% lower at 96.328. Gold, after falling nearly a percent to $1753, rebounded to end higher by a third of a percent at $1777 per ounce.

 

Brent crude futures rose 18 cents, or 0.24%, to settle at $73.88 per barrel while WTI crude futures settled 14 cents, or 0.2%, higher at $70.87 a barrel.

 

In Europe, FTSE fell 0.7% while DAX and CAC gained 0.2% and 0.5% respectively.  U.K. Consumer Price Index rose by 5.1% y-o-y, up from 4.2% in October, the steepest incline for a decade and more than double the Bank of England’s target.

 

Earlier, data from China showed industrial output for November rose 3.8% year-on-year, more than the 3.5% increase in October, and better than the 3.6% expected. Retail sales in November rose 3.9% year-on-year, less than October’s 4.9% increase, and below the expectations of 4.6%.

 

AT HOME

 

Benchmark indices ended lower by six tenth of a percent each after a choppy session, extending the losing streak to fourth straight day. Sensex lost 329 points to settle at 57788 while Nifty finished at 17221, down 103 points. Nifty mid-cap and small-cap indices fell 0.6% and 0.4% respectively. Except 0.5% and 0.1% higher Auto and Capital Goods indices, all the BSE sectoral indices ended in red, with Realty and Teck indices leading the losses, down 1.8% and 1.1% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3407 cr, 416 cr and 1775 cr respectively. DIIs were net buyers to the tune of Rs 1553 cr.

 

Rupee depreciated 36 paise to end at 76.23/$.

 

OUTLOOK

 

Today morning, Nikkei is up more than a percent, Shanghai is flat while Hang Seng is down a percent. SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 17225, the low made Tuesday, was the immediate support, upon breach of which, 17050, where a trendline adjoining recent bottoms is placed, would be the next downside level to eye.

 

Nifty touched a low of 17192 before closing at 17221.

 

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.

 

36545, the low made Tuesday, is the immediate support for Banknifty, upon breach of which, 36200, around which a trendline adjoining recent bottoms is placed, would be the next support to eye; 37581, the top made Monday, is the immediate hurdle.