17150 IS THE NEXT UPSIDE LEVEL TO EYE; 16688 IMMEDIATE SUPPORT

 

17150 IS THE NEXT UPSIDE LEVEL TO EYE; 16688 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices gained 0.7%-1.2% after the U.S. Food and Drug Administration granted authorization for Pfizer’s Covid treatment pill, the first oral antiviral drug cleared during the pandemic.

 

On the data front, 3rd (final) estimate showed that the U.S. economy grew by +2.3% in Q3CY21, slightly higher than +2.1% in the 2nd estimate and +6.7% printed in Q2CY21. Another data shows that the U.S. Conference Board Consumer Confidence surged to 115.8 in December against November reading 111.9, higher than the market expectations 110.8.

 

US 10-year treasury yield eased 1 bps to 1.455%. Dollar index slipped 0.4% to 96.12. Gold gained 0.8% to reach $1802 per ounce.

 

Brent crude settled $1.31, or 1.77%, higher at $75.29 a barrel while WTI crude futures advanced $1.64, or 2.3%, to settle at $72.76 per barrel.

 

European markets rose 0.6%-1.2%.

 

AT HOME

 

Benchmark indices soared 1.1% each, extending the winning streak to second straight day. Sensex settled at 56930, up 611 points while Nifty added 184 points to finish at 16955. Nifty mid-cap and small-cap indices surged 1.6% and 2.2% respectively. All the BSE sectoral indices ended higher with Realty index leading the tally, up 2.9%, followed by 2% higher Capital Goods, Industrials and Energy indices.

 

FIIs net sold stocks and index futures worth Rs 827 cr and 810 cr respectively but net bought stock futures worth Rs 2130 cr. DIIs were net buyers to the tune of Rs 1593 cr.

 

Rupee appreciated 5 paise to end at 75.55/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-0.3% and SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 16966, the upper end of the gap created by Monday's gap-down opening, continues to be immediate hurdle to eye, upon crossover of which, 20-DMA, placed around 17150, would be the next hurdle.

 

Nifty touched a high of 16971 before closing at 16955. The benchmark is set to open near 17000 today.

 

20-DMA, placed around 17150, is the next upside level to eye; 16688, the bottom made Tuesday, would now act as immediate support.

 

For Banknifty, 35231-35535, the gap created by Monday's gap-down opening, continues to be immediate resistance zone; 34390, the low made Tuesday, is the immediate support.