18210 ABOVE 17944; 17560 CONTINUES TO BE IMMEDIATE SUPPORT

 

18210 ABOVE 17944; 17560 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

On Friday, Dow ended flat while S & P 500 and Nasdaq fell 0.4% and 1% respectively, with S & P 500 and Nasdaq extending the losing streak to fourth consecutive day.

 

December’s nonfarm payrolls grew by 199,000, lower than the expected 422,000. However, the unemployment rate dropped to 3.9% as against the expected 4.1% mark and average hourly earnings increased by 0.6%, above expectations.

 

US 10-year treasury yield rose 4 bps to 1.764% after hitting a 2-year high of 1.799%. Dollar index slipped half a percent to 95.74. Gold inched up 0.3% to $1796 an ounce.

 

Brent crude settled down 24 cents, or 0.3%, to $81.75 a barrel, while WTI crude was down 56 cents, or 0.7%, at $78.90 a barrel.

 

In Europe, FTSE rose half a percent while DAX and CAC fell 0.6% and 0.4% respectively. Euro zone inflation surged to all-time high of 5% in December. Germany’s trade surplus dropped to its smallest level in November since 2011 and industrial production also fell 0.2% month-on-month.

 

For the week, Dow and S & P 500 fell 0.3% and 1.9% respectively while Nasdaq plunged 4.5%, posting its worst week since February 2021. Oil rose 5% for its third straight weekly gain.

 

AT HOME

 

Sensex and Nifty ended higher by 0.24% and 0.4% respectively after a choppy session. Sensex settled at 59744, up 142 points while Nifty added 66 points to finish at 17812. Nifty mid-cap and small-cap indices gained 0.5% and 0.4% respectively. BSE Basic Materials and Oil & Gas indices were the top gainers among the sectoral indices, up 1.3% and 1.1% respectively whereas Capital Goods and Telecom indices were the top losers, down 0.8% and 0.4% respectively.

 

FIIs net bought stocks and index futures worth Rs 496 cr and 578 cr respectively but net sold stock futures worth Rs 116 cr.

 

Rupee appreciated 19 paise to end at 74.30/$.

 

For the week, Sensex and Nifty gained 2.6% each, extending the winning streak to third straight day and closing at the highest level after the week ended 12th November. 

 

NSO's first advance estimate projected FY22 GDP growth at 9.2%, which is lower than RBI's 9.5% estimate. Nominal GDP is projected at Rs. 232 trillion, a growth of 17.6%.

 

OUTLOOK

 

Nikkei is shut today while Hang Seng is up 0.7% and Shanghai is down 0.2%. SGX Nifty is suggesting around 80 points higher start for our market.

 

In Friday's report we had said that 17560 continued to be immediate support on the hourly chart while 17944, the top made on Wednesday, was the immediate upside level to eye.

 

Nifty, after touching a high of 17905, closed at 17812 and is set to open near 17900 today.

 

17944 is the top made last week, upon crossover of which, 18210, the top made in November, would be the next upside target to eye; 17560 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 38845 and 39250, the 61.8% and 67% retracement levels of the entire 41830-34018 fall, are the next upside levels to eye; 36850 is the immediate support on the hourly chart.