17400 ABOVE 17140; 16850 IS IMMEDIATE SUPPORT

 

17400 ABOVE 17140; 16850 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.6% each while Nasdaq rose 0.8%, with all of them extending the winning streak to third consecutive day and S & P 500 closing at a record as investor confidence grew on signs that Omicron might be less severe than feared, as well as robust U.S. economic data.

 

New studies suggested that omicron has a lower risk of hospitalization than other Covid variants. The USFDA authorized Merck’s antiviral pill for Covid-19.

 

Weekly jobless claims came in about as expected at 205,000. Durable goods for November rose 2.5%, compared to the 1.5% estimate. Personal income and spending showed increases for November. But on the inflation side, the Federal Reserve’s closely watched core personal consumption expenditures index rose 0.6% in November from the month prior. Core PCE rose 4.7% y-o-y in November, higher than the 4.5% rate expected.

 

US 10-year treasury yield rose 4 bps to 1.494%. Dollar index fell 0.4% to 96.12. Gold rose a third of a percent to $1808 per ounce.

 

Brent crude futures advanced 2.1%, or $1.56, to $76.85 per barrel and WTI crude futures settled $1.03, or 1.4%, higher at $73.79.

 

European markets gained 0.4%-1.2%

 

US markets are shut today for the Christmas holiday. For the week, US indices gained 1.7%-3.2%.

 

AT HOME

 

Benchmark indices climbed 0.7% each, extending the winning streak to third straight day and closing at one week high. Sensex settled at 57315, up 384 points while Nifty added 117 points to finish at 17072. Nifty mid-cap and small-cap indices climbed 0.9% and 1.3% respectively. Except 0.8% and 0.3% lower Telecom and Metal indices respectively, all the BSE sectoral indices ended higher, with Realty and Oil & Gas indices on the top, up 2.2% and 1.5% respectively.

 

FIIs net sold stocks worth Rs 272 cr but net bought index futures and stock futures worth Rs 989 cr and 1770 cr respectively. DIIs were net buyers to the tune of Rs 1196 cr.

 

Rupee appreciated 31 paise to end at 75.24/$.

 

OUTLOOK

 

Today morning, except 0.1% lower Shanghai, other Asian markets are trading with modest gains and SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 20-DMA, placed around 17150, was the next upside level to eye and that 16688, the bottom made Tuesday, would now act as immediate support.

 

Nifty surged to touch a high of 17118 before closing at 17072. The benchmark is set to open above 17100 today.

 

20-DMA, placed around 17140, continues to be upside level to eye, upon decisive crossover of which, 34-DMA, placed around 17400, would be the next major target as well as resistance to eye.

 

Immediate support on the hourly chart has moved up to 16850, with the stop-loss of which, trading longs could be held on to.

 

For Banknifty, 35535, the upper end of the gap created by Monday's gap-down opening, is the immediate hurdle to eye, upon crossover of which, 20-DMA, placed around 36000, would be the next level to eye; 34390, the low made Tuesday, is the immediate support.