STAY SHORT WITH THE STOP-LOSS OF 17900

 

STAY SHORT WITH THE STOP-LOSS OF 17900

 

WORLD MARKETS

 

US indices fell 0.8%-2%, bracing for the busiest week of earnings season and interest rate decision from the Federal Reserve.

 

US 10-year treasury yield rose 4 bps to 3.542%. Dollar index rose 0.3% to 102.24. Gold fell 0.2% to $1923 per ounce.

 

Brent futures fell 2% to $84.90 a barrel and WTI crude fell 2.2% to $77.90 per barrel.

 

In Europe, FTSE rose quarter of a percent but DAX and CAC fell 0.2% each.

 

AT HOME

 

After falling a percent, benchmark indices recouped all the losses and some more in late noon rebound to end higher by a third of a percent, snapping 2-day losing streak. Sensex settled at 59500, up 169 points while Nifty added 44 points to finish at 17648. Nifty mid-cap and small-cap indices fell 0.2% and 0.1% respectively. BSE Utilities and Power indices nosedived 5.7% and 5.3% respectively, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 1% and 0.9% respectively.

 

FIIs net sold stocks and index futures worth Rs 6793 cr and 1607 cr respectively but net bought stock futures worth Rs 555 cr. DIIs were net buyers to the tune of Rs 5513 cr.

 

Rupee appreciated 2 paise to end at 81.50/$.

 

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 17500-17450 was an important support area below which 17300-17200 would be next support area; We had also said that 18000 was immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

Nifty, after touching a low of 17405, rebounded to end at 17648.

 

17300-17200 is the next support area for Nifty as 17300 is where 200-DMA is placed while 17200 is the 78.6% retracement level of the 16747-18887 upmove; 17900 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 39420, the low made yesterday, is the immediate support, below which, 200-DMA, placed around 38800, would be next downside level to eye; On the way up, 41417-41540, the gap created by Friday's gap-down opening, is the immediate resistance zone.

 

Finance Minister will present Economic Survey in the Parliament today.

18000 IS IMMEDIATE HURDLE; 17500-17450 IS THE SUPPORT ZONE

 

18000 IS IMMEDIATE HURDLE; 17500-17450 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

US indices gained 0.1%-1% with Nasdaq on the top, fueled by gains in Tesla shares.

 

The personal consumption expenditures price index, excluding energy and food, showed prices rose 4.4% Y-O-Y, in line with the estimate. Consumer spending dropped 0.2% last month, higher than the expected 0.1% dip. Data for November was revised lower to show spending slipping 0.1% instead of gaining 0.1% as previously reported.

 

Tesla rose 11% Friday, and 33% for the week after reporting record revenue. It marked the electric vehicle stock’s best weekly performance since May 2013.

 

US 10-year treasury yield were little changed at 3.505%. Dollar index inched up 0.1% to 101.92. Gold fell 0.1% to $1927 per ounce.

 

Brent futures settled down 81 cents, or 0.9%, at $86.66 per barrel and U.S. crude fell $1.33, or 1.6 %, to $79.68.

 

European markets ended marginally higher.

 

For the week, Nasdaq surged 4.3% and closed out its fourth week of gains. The S&P and Dow added 2.5% and 1.8% respectively.

 

AT HOME

 

Sensex and Nifty tumbled 1.45% and 1.6% respectively to close at the lowest level after 21st October, 2022. Sensex settled at 59330, down 874 points while Nifty lost 287 points to finish at 17604. Nifty mid-cap and small-cap indices fell 1.5% and 1.9% respectively. BSE Utilities and Power indices nosedived 7.3% and 6.8% respectively, becoming top losers among the sectoral indices while Auto and Healthcare indices were the top gainers, up 1% and 0.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 5978 cr, 3073 cr and 1303 cr respectively. DIIs were net buyers to the tune of Rs 4252 cr.

Rupee appreciated 7 paise to end at 81.52/$.

 

For the week, Sensex and Nifty fell 2.1% and 2.3% respectively.

 

OUTLOOK

 

Today morning, Shanghai and Nikkei are up 0.8% and 0.3% respectively while Hang Seng is down half a percent. SGX Nifty is suggesting around 50 points higher start for our market.

 

In Friday's report we had said that 17846, was the immediate support below which, 17761, the bottom made on 12th January, would be next downside level to eye. We had also advised holding on to short positions with the stop-loss of 18100.

 

Nifty plunged all the way to 17493 before closing at 17604.

 

17493 was the low made last week and 34-week moving average is placed around 17450. This makes 17500-17450 an important support area. If Nifty trades below this, 17300-17200 would be next support area; On the way up, 18000 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 39970, the 61.8% retracement level of the entire upmove seen after September 2022, is the next support, below which, 34-week moving average, placed around 39500, would be next downside level to eye; On the way up, 41417-41540, the gap created by Friday's gap-down opening, would be immediate hurdle, above which, 42000-42200 would be next resistance area.

 

17761 BELOW 17846; 18100 IS IMMEDIATE HURDLE

 

17761 BELOW 17846; 18100 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 were little changed while Nasdaq fell 0.2% on Wednesday. Yesterday, US indices gained 0.6%-1.8% after U.S. economy grew more than expected.

 

US economy expanded at an annualized rate of 2.9% during the fourth quarter, down from 3.2% pace in third quarter, but higher than the expected 2.6% rate. Initial claims for state unemployment benefits dropped 6,000 to a seasonally adjusted 186,000 for the week ended Jan. 21.

 

US 10-year treasury yield rose 5 bps to 3.502%. Dollar index rose 0.2% to 101.82. Gold fell 0.9% to $1929 per ounce.

 

Brent futures rose 1.6% to settle at $87.47 a barrel and WTI crude rose 1.1% to $81.01.

 

European markets rose 0.2%-1.3%.

 

AT HOME

 

Benchmark indices plunged a percent and quarter, their worst cut since 23rd December, 2022. Sensex settled at 60205, down 773 points while Nifty lost 226 points to finish at 17891. Nifty mid-cap and small-cap indices nosedived 1.5% and 1.2% respectively to close at the lowest level after 23rd December, 2022. Except 0.1% higher Metal index, all the BSE sectoral indices ended in red, with Services and Utilities indices being the top losers, down 2.9% each, followed by 2.7% lower Power index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2395 cr, 3616 cr and 569 cr respectively. DIIs were net buyers to the tune of Rs 1378 cr.

 

Rupee appreciated 13 paise to end at 81.59/$.

 

OUTLOOK

 

Shanghai continues to be shut for lunar New Year holiday. Nikkei is flat while Hang Seng is down 0.3%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In Wednesday's report we had said that 18201 was the immediate hurdle while 18016 was the immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty broke 18016 and plunged all the way to 17846 before closing at 17891.

 

17846, the low made Wednesday, also coincides with the 78.6% retracement level of the recent 17761-18201 upmove, and hence is the immediate support to eye, Below 17846, 17761, the bottom made on 12th January, would be next support; 18100 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, below Wednesday's low of 41540, next support to eye would be 40819, the bottom made in November; 42500 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

18201 IS IMMEDIATE HURDLE; 18016 IMMEDIATE SUPPORT

 

18201 IS IMMEDIATE HURDLE; 18016 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow rose 0.3% for its third consecutive up day while S & P 500 and Nasdaq fell 0.1% and 0.3% respectively

 

S&P Global's flash U.S. Composite Output Index rose to 46.6 in January from 45 in December. Though U.S. business activity contracted in January for the seventh straight month, the downturn moderated across both the manufacturing and services sectors for the first time since September and business confidence strengthened.

 

3M plunged 6.2% on disappointing guidance, while Union Pacific dipped 3.3% after the railroad company’s results fell short of analysts’ estimates.

 

US 10-year treasury yield fell 6 bps to 3.455%. Dollar index fell 0.1% to 101.92. Gold rose a third of a percent to $1937 per ounce.

 

Brent futures for March delivery fell $1.15 to $87.04 a barrel, a 1.3% loss. WTI crude fell 96 cents, or 1.2%, to $80.66 per barrel.

 

In Europe, FTSE and DAX fell 0.4% and 0.1% respectively but CAC gained 0.3%. S&P Global’s flash Composite PMI for Euro zone came in at 50.2 in January, up from 49.3 in December and making a surprise return to modest growth.  Yet British private sector economic activity fell at its fastest rate in two years.

 

AT HOME

 

After rising nearly half a percent in the initial trade, benchmark indices gave away all the gains through the session to end little changed. Sensex settled at 60978, up 37 points while Nifty was absolutely flat at 18118. Nifty mid-cap and small-cap indices fell 0.4% each. BSE Metal index slipped 1.2%, becoming top loser among the sectoral indices, followed by 1% lower Healthcare and Realty indices. Auto index was the top gainer, up 1.2%, followed by 0.7% higher Consumer Discretionary and IT indices.

 

FIIs net sold stocks worth Rs 761 cr but net bought index futures and stock futures worth Rs 475 cr and 1277 cr respectively. DIIs were net buyers to the tune of Rs 1145 cr.

 

Rupee depreciated 33 paise to end at 81.72/$.

 

OUTLOOK

 

Markets in China and Hong Kong are closed for a holiday. Nikkei is marginally in the green but SGX Nifty is suggesting around 40 points lower start for our market.

 

In yesterday's report we had said that 18184, the top made last week, continued to be immediate hurdle, upon sustained trading above which, 18325 and 18457, the 50% and 61.8% retracement levels of the 18887-17761 fall, would be next upside levels to eye; We had also said that 17950 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a high of 18201 in the initial trade, slipped to end at 18118.

 

18201, the top made yesterday, is the immediate hurdle, upon crossover of which, 18325 and 18457, the 50% and 61.8% retracement levels of the 18887-17761 fall, would be next upside levels to eye; 18016, the bottom made Friday, is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43079, the top made yesterday, is the immediate hurdle, above whcih, 43578, the top made on 4th January, would be next upside target to eye; 42500-42400 is the support area.

 

Tata Motors and Dr Reddy's will report their quarterly earnings today.

 

18325 ABOVE 18184; STAY LONG WITH THE STOP-LOSS OF 17950

 

18325 ABOVE 18184; STAY LONG WITH THE STOP-LOSS OF 17950

 

WORLD MARKETS

 

US indices climbed 0.8%-2%, extending Friday's upmove, on optimism the Federal Reserve may slow down its interest rate hikes.

 

US 10-year treasury yield rose 3 bps to 3.517%. Dollar index was flat at 102.02. Gold inched up 0.2% to $1930 per ounce.

 

Brent crude rose 56 cents to $88.19 a barrel while WTI crude settled 2 cents lower at $81.62 a barrel.

 

In Europe, FTSE inched up 0.2% while DAX and CAC rose half a percent each.

 

AT HOME

 

Benchmark indices rose half a percent each, snapping a 2-day losing streak. Sensex settled at 60941, up 320 points while Nifty added 90 points to finish at 18118. Nifty mid-cap index rose 0.6% but small-cap index ended marginally in the red. BSE IT and Teck indices surged 1.6% and 1.5% respectively, becoming top gainers among sectoral indices while Commodities and Realty indices were the top losers, down 1.1% and 0.7% respectively.

 

FIIs net sold stocks worth Rs 220 cr but net bought index futures and stock futures worth Rs 859 cr and 2240 cr respectively. DIIs were net buyers to the tune of Rs 435 cr.

 

Rupee depreciated 27 paise to end at 81.39/$.

 

OUTLOOK

 

Markets in China, Hong Kong, Taiwan, South Korea, Malaysia and Singapore are closed for a holiday. Nikkei is up 1.7% and SGX Nifty is suggesting around 90 points higher start for our market.

 

In yesterday's report we had said that 18184, was the immediate hurdle while 17950 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to touch a high of 18162 before closing at 18105. The benchmark is set to open near 18200 today.

 

18184, the top made last week, continues to be immediate hurdle, upon sustained trading above which, 18325 and 18457, the 50% and 61.8% retracement levels of the 18887-17761 fall, would be next upside levels to eye; 17950 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43578, the top made on 4th January, is the next upside target to eye; 42380 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

18184 IS THE IMMEDIATE HURDLE; STAY LONG WITH THE STOP-LOSS OF 17950

 

18184 IS THE IMMEDIATE HURDLE; STAY LONG WITH THE STOP-LOSS OF 17950

 

WORLD MARKETS

 

US indices surged 1%-2.6% on Friday, with the Dow and S & P 500 snapping a 3-day losing streak.

 

Netflix gained 8.5% after posting more subscribers than expected even though its quarterly earnings missed estimates. Alphabet rose more than 5% after the company announced it will lay off 12,000 employees.

 

Fed Governor Waller said he backs a quarter percentage point interest rate increase at the central bank’s next meeting. He also said he would tolerate a soft recession if it meant bringing inflation down.

 

US 10-year treasury yield rose 9 bps to 3.484%. Dollar index fell 0.1% to $101.99. Gold fell 0.3% to $1926 per ounce.

 

Brent crude rose 1.5% to $87.58 per barrel and U.S. crude gained 1.2% to settle at $81.31 a barrel.

 

European markets gained 0.3%-1.4%.

 

Data earlier showed Japan's core consumer price index rose 4% in December on an annualized basis, the fastest pace since 1981. In China, central bank left 1-year and 5-year loan prime rates unchanged.

 

For the week, Dow and S & P 500 fell 2.7% and 0.7% respectively, breaking two-week win streaks. Nasdaq however inched up 0.6% for its third positive week in a row. European markets fell 0.4%-0.9%. Asian markets did better, rising between 0.4%-2%.

 

In other asset classes, US 10-year treasury yield rose 4 bps to 3.48%, Dollar index fell 0.2% to 101.99 and Gold rose 0.3% to $1926 per ounce. WTI crude rose 1.7% and Brent advanced 2.8%.

 

AT HOME

 

Benchmark indices slipped four tenth of a percent, extending yesterday's similar cuts. Sensex settled at 60621, down 236 points while Nifty lost 80 points to finish at 18027. Nifty mid-cap and small-cap indices tumbled 0.8% and 0.6% respectively. BSE Telecommunication index tumbled 1.4%, becoming top loser among the sectoral indices, followed by 1% lower Commodities and Consumer Durables indices. Power and Utilities indices were the top gainers, up half a percent each.

 

FIIs net sold stocks worth Rs 2002 cr but net bought index futures and stock futures worth Rs 1027 cr and 1057 cr respectively. DIIs were net buyers to the tune of Rs 1510 cr.

 

Rupee appreciated 24 paise to end at 81.12/$.

 

For the week, Sensex and Nifty gained 0.6% and 0.4% respectively, extending the winning streak to second straight week.

 

OUTLOOK

 

Shanghai and Hang Seng are shut today on account of lunar New Year holiday. Nikkei is up more than a percent and SGX Nifty is suggesting around 90 points higher start for our market.

 

In Friday's report we had said that 18265, the top made on 30th December, continued to be next upside level to eye while 17950 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty slipped to 18016 before closing at 18027. The benchmark is set to open near 18100 today.

 

18184, the top made last week, around which 34-DMA is also placed, is the immediate hurdle to eye; 17950 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 42715 continues to be immediate hurdle, upon crossover of which, 43578, the top made on 4th January, would be the next upside target to eye; 41569, the bottom made in December, is the important support.

 

Axis Bank will report it's quarterly earnings today.

 

17950 CONTINUES TO BE IMMEDIATE SUPPORT

 

17950 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.8% each while Nasdaq tumbled 1% as weak U.S. economic readings and hawkish comments from Federal Reserve officials fueled recession worries.

 

Initial Jobless claims fell to 190,000 for the week ending Jan. 14, their lowest level since late June last week.

 

US 10-year treasury yield rose 2 bps to 3.392%. Dollar index fell 0.4% to 102.05. Gold jumped 1.5% to $1932 per ounce.

 

Oil prices rose to reach their best level since December 1. Brent futures gained 1.4% to settle at $86.16 per barrel, while WTI crude futures rose 1.1% to $80.33 per barrel.

 

European markets fell 1.1%-1.9%.

 

AT HOME

 

Benchmark indices fell 0.3% each, snapping 2-day winning streak. Sensex settled at 60858, down 187 points while Nifty lost 57 points to finish at 18107. Nifty mid-cap and small-cap indices fell 0.1% and 0.5% respectively. BSE Utilities and Power indices were the top losers among the sectoral indices, down 1.2% and 1% respectively while Oil & Gas and Power Energy indices were top gainers, up 0.8% and 0.7% respectively.

 

FIIs net bought stocks worth Rs 400 cr but net sold index futures and stock futures worth Rs 383 cr and 667 cr respectively. DIIs were net sellers to the tune of Rs 129 cr.

 

Rupee depreciated 12 paise to end at 81.36/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.6% each while Nikkei is flat. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 18265, the top made on 30th December, continued to be next upside level to eye while 17950 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty fell to 18063 and closed at 18107.

 

18265, the top made on 30th December, continues to be next upside level to eye; 17950 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 42715 continues to be immediate hurdle, upon crossover of which, 43578, the top made on 4th January, would be the next upside target to eye; 41569, the bottom made in December, is the important support.

 

Reliance Industries, JSW Steel and HDFC Life will report their quarterly earnings today.

 

STAY LONG WITH THE STOP-LOSS OF 17950

 

STAY LONG WITH THE STOP-LOSS OF 17950

 

WORLD MARKETS

 

US indices plunged 1.2%-1.8% with Nasdaq snapping 7-day winning streak and S & P 500 suffering worst cut since December 15 as disappointing retail sales and a weaker-than-expected producer price index reading ignited recession fears. Also, key members of the Federal Reserve signaled their intent to keep pushing interest rates higher to combat inflation.

 

US wholesale prices fell 0.5% for the month, much more than expectation of a 0.1% decline. Retail sales fell 1.1% in December, following an upwardly revised 1% drop in November.

 

US 10-year treasury yield plunged 18 bps to 3.372%. Dollar index, after wild intraday swings, was little changed at 102.407. Gold fell quarter of a percent to $1904  per ounce. The Japanese yen sank after the Bank of Japan maintained ultra-low interest rates.

 

Brent futures fell 1.1% to $84.98 a barrel and WTI crude fell 0.9% to $79.48.

 

In Europe, FTSE fell 0.3%, DAX was marginally lower while CAC inched up 0.1%.

 

AT HOME

 

Benchmark indices rose six tenth of a percent each, extending the winning streak to second straight day and closing at the highest level after 3rd January. Sensex settled at 61045, up 390 points while Nifty added 112 points to finish at 18165. Nifty mid-cap and small-cap indices rose 0.5% and 0.1% respectively. BSE Metal index surged 2.4%, becoming top gainer among the sectoral indices, followed by 1.5% higher Capital Goods index. Utilities index was the top loser, down 0.4%, followed by 0.1% lower Realty and Power indices.

 

FIIs net sold stocks worth Rs 319 cr but net bought index futures and stock futures worth Rs 1927 cr and 735 cr respectively. DIIs were net buyers to the tune of Rs 1226 cr.

 

Rupee appreciated 52 paise to end at 81.24/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-1.2% and SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 18265, the top made on 30th December, was the next upside level to eye while 17853, the low made Monday, is the immediate support.

 

Nifty rose to touch a high of 18183 before closing at 18165.

 

18265, the top made on 30th December, continues to be next upside level to eye; Immediate support on the hourly chart has moved up to 17950, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 42715 continues to be immediate hurdle, upon crossover of which, 43578, the top made on 4th January, would be the next upside target to eye; 41569, the bottom made in December, is the important support.

 

Asian Paints and HUL will report their quarterly earnings today.