18300 BELOW 18410; 18668 IS IMMEDIATE HURDLE

 

18300 BELOW 18410; 18668 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow dipped 0.9% while S & P 500 and Nasdaq fell 0.7% each after November’s producer price index came in hotter-than-expected.

 

PPI rose 0.3% over previous month and 7.4% over the previous year. Core PPI, which excludes food and energy, also topped expectations.

 

US 10-year treasury yield rose 10 bps to 3.584%. Dollar index inched up 0.1% to 104.93. Gold rose half a percent to $1797 per ounce.

 

WTI crude settled 44 cents lower at $71.02 a barrel, a new low for 2022. Brent crude settled 5 cents lower at $76.10 per barrel.

 

In Europe, FTSE inched up 0.1% while DAX and CAC gained 0.7% and 0.5% respectively.

 

Earlier Hong Kong’s Hang Seng index advanced more than 2%. China’s consumer price index rose 1.6% in November on an annualized basis, while its producer price index fell 1.3%.

 

On a weekly basis, the Dow fell 2.8% for its worst week since September. The S&P tumbled 3.4%, while the Nasdaq dropped 4%. Brent as well as WTI crude posted weekly losses of around 10% each. It was the biggest weekly decline since April for WTI and since early August for Brent.

 

AT HOME

 

Benchmark indices slipped six tenth of a percent each to close at the lowest levels in two-weeks. Sensex settled at 62181, down 389 points while Nifty lost 112 points to finish at 18496. Nifty mid-cap and small-cap indices fell 0.4% and 1.1% respectively. Nifty IT index nosedived 3.1%, becoming top loser among the sectoral indices, followed by 1.8% lower PSU Bank index. FMCG and Healthcare indices were the top gainers, up 0.9% and 0.3% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 158 cr, 980 cr and 1987 cr respectively. DIIs were net buyers to the tune of Rs 502 cr.

 

Rupee depreciated 15 paise to end at 82.27/$.

 

For the week, Sensex and Nifty fell 1.1% each, snapping a 2-week winning streak.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-1.4% and SGX Nifty is suggesting around 35 points lower start for our market.

 

In Friday's report we had said that 18670-18730 continues to be immediate resistance zone on the hourly chart, while 20-DMA, placed around 18500, was the immediate support.

 

Nifty, after touching a high of 18664 in the initial trade, plunged to 18410 before closing at 18496.

 

18410, the low made Friday, also coincided with a rising trendline adjoining bottoms made on 10th and 22nd November and hence is the immediate support to eye. Below 18410, 34-DMA, placed around 18300, would be the important support; On the way up, 18668 is the immediate hurdle on the hourly chart, upon crossover of which, 18887, the top made on 1st December, would be the bigger hurdle to eye.

 

For Banknifty, 44300 is the next upside target; Immediate support on the hourly chart has moved up to 43200, with the stop-loss of which, trading longs can be held on to.