STAY LONG WITH THE STOP-LOSS OF 17310

 

STAY LONG WITH THE STOP-LOSS OF 17310

 

WORLD MARKETS

 

US indices gained 0.6%-1.2%, with Nasdaq leading the gains and Dow and S&P 500 notching new record closes.

 

Tesla soared 13.5% after the firm beat fourth-quarter and full-year delivery expectations. Apple became the first ever $3 trillion market capitalization company after rising 2.5% to a new record.

 

US 10-year treasury yield surged 13.7 basis points to 1.637%. Dollar index rose 0.6% to 96.23. Spot gold dipped 1.5% to $1,800.68 an ounce

 

Brent crude fell 42 cents, or 0.5%, to $77.36 a barrel and U.S. West Texas Intermediate (WTI) crude slipped 52 cents or 0.7%, to $74.69.

 

In Europe, FTSE was shut while DAX and CAC gained 0.9% each.

 

AT HOME

 

Benchmark indices soared 1.6% each on the first trading day of the new calendar year and closed at the highest level after 18th November. Sensex settled at 59183, up 929 points while Nifty finished at 17625, up 271 points. Nifty mid-cap and small-cap indices gained 1.1% each. Except 0.2% lower Healthcare index, all the BSE sectoral indices ended in green, with Bankex and Finance indices on the top, up 2.6% and 2.4% respectively.

 

FIIs net bought stocks and index futures worth Rs 903 cr and 662 cr respectively but net sold stock futures worth Rs 346 cr. DIIs were net buyers to the tune of Rs 803 cr.

 

Rupee appreciated 7 paise to end at 74.26/$.

 

India's December manufacturing PMI fell to 55.5 from 57.6 month-on-month.

 

India's trade deficit in December stood at $21.99 bn up from; exports rose 37% y-o-y to a record $37.29 bn while imports rose 38% to record $59.27 bn.

 

OUTLOOK

 

Today morning, Nikkei is up 1.4%, Hang Seng is flat while Shanghai is down half a percent. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 17500 was the next upside level to eye and had advised holding on to long positions with the stop-loss of 17165.

 

Nifty surged to touch a high of 17646 before closing at 17625.

 

17766 and 17880, the 61.8% and 67% retracement levels of the entire 18604-16410 fall, are the next upside levels to eye; Immediate support on the hourly chart has moved up to 17310, with the stop-loss of which, trading longs can be held on to.

 

37150-37300 is the next target zone for Banknifty; 35400 is immediate support.