NIFTY REBOUNDS FROM INDICATED SUPPORT

 

NIFTY REBOUNDS FROM INDICATED SUPPORT

 

WORLD MARKETS

 

US indices surged 1%-2.6% as treasury yields and dollar dipped after initial unemployment claim data pointed to a cooling off in the U.S. labor market.

 

Initial claims for unemployment benefits rose 9,000 to a seasonally adjusted 225,000 for the week ended Dec. 24, slightly above the 223,000 estimate.

 

US 10-year treasury yield dipped 7 bps to 3.818%, having hit a six-week high in the previous session. Dollar index fell half a percent to 103.98. Gold gained 0.6% to reach $1814 per ounce.

 

Brent crude futures fell 1.2% to $82.26 and WTI futures settled 0.7% lower at $78.40 per barrel.

 

In Europe, FTSE inched up 0.2% while DAX and CAC climbed 1% each.

 

AT HOME

 

After falling around 0.7% in first hour, benchmark indices surged more than a percent from the lowest point of the day to end higher by 0.4%. Sensex settled at 61133, up 223 points while Nifty added 68 points to finish at 18191. Nifty mid-cap and small-cap indices gained 0.1% and 0.2% respectively. Nifty Oil & Gas and Metal indices were the top gainers among the sectoral indices, up 1.2% and 1.1% respectively while Media and Consumer Durables indices were the top losers, down 0.6% and 0.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 573 cr, 14 cr and 511 cr respectively. DIIs were net buyers to the tune of Rs 516 cr.

 

Rupee appreciated 6 paise to end at 82.80/$.

 

India's Q2 Current Account Deficit surged to $36.4 bn, hitting a 9-year high of 4.4% of GDP, as imports surged 30% while exports rose 16%.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 1.4% and 0.6% respectively while Nikkei is marginally in the green. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 17967, the low made Tuesday, was the immediate support, while 34-DMA, placed around 18400, was the next upside target/resistance.

 

Nifty, after making a low of 17992, rebounded to end at 18191.

 

34-DMA, placed around 18400, continues to be next upside target/resistance to eye; 17967, the low made Tuesday, continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43614, the top made last week, is the next target above which, 44151, the top made in mid-December would be next upside level to eye; 42394, the low made Tuesday, continues to be immediate support.