TRAIL STOP-LOSS TO 17560

 

TRAIL STOP-LOSS TO 17560

 

WORLD MARKETS

 

US indices plunged 1.1%-3.3% as minutes from the Federal Reserve’s December meeting revealed the central bank discussed reducing its balance sheet and also signaled it could get more aggressive in raising rates. Nasdaq saw its biggest one-day loss since February.

 

Data from ADP showed U.S. private payrolls grew by 807,000 in December, more than double the estimate of 375,000.

 

US 10-year treasury yield rose 5 bps to 1.709%. Dollar index was 0.1% off at 96.18. Gold, after hitting an intraday high of $1830, slipped to end 0.3% lower at $1809 per ounce.

 

Brent crude, after hitting a high of 81.48, eased to end 0.1% lower at $80 per barrel. WTI was flat at $77.17.

 

European markets gained 0.2%-0.8%. The IHS Markit euro zone composite PMI came in at 53.3 last month, down from 55.4 in November.

 

AT HOME

 

Sensex and Nifty gained 0.6% and 0.7% respectively, extending the winning streak to fourth straight day. Sensex settled at 60223, up 367 points and reclaimed 60000 mark after 17th November. Nifty added 120 points to finish at 17925. Broader indices however extended the underperformance, with Nifty mid-cap and small-cap indices rising below 0.1%. BSE Bankex and Finance indices soared 2.4% and 1.8% respectively, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 1.9% and 1.5% respectively.

 

FIIs net bought stocks and index futures worth Rs 337 cr and 476 cr respectively but net sold stock futures worth Rs 227 cr. DIIs were net buyers to the tune of Rs 1272 cr.

 

Rupee appreciated 19 paise to end at 74.36/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are down 1.6% and 0.2% respectively while Hang Seng is up a third of a percent. SGX Nifty is suggesting around 120 points lower start for our market.

 

In yesterday's report we had said that 17880, was the next upside level to eye, above which, 18210, the top made in November, would be the next target and that  trading longs could be held on to with the stop-loss of 17430.

 

Nifty soared to touch a high of 17944 before closing at 17925. The benchmark is set to open below 17850 today.

 

18210, the top made in November, is the next upside level to eye; Immediate support on the hourly chart has moved up to 17560, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, above 37900, 38850 and 39250, the 61.8% and 67% retracement level of the entire 41830-34018 fall, would be the next targets; 36200 is the immediate support.