18400 CONTINUES TO BE UPSIDE LEVEL TO EYE; 17967 CONTINUES TO BE IMMEDAITE SUPPORT

 

18400 CONTINUES TO BE UPSIDE LEVEL TO EYE; 17967 CONTINUES TO BE IMMEDAITE SUPPORT

 

WORLD MARKETS

 

Dow was little changed while S & P 500 and Nasdaq fell 0.4% and 0.8% respectively as shares of Tesla and Apple slipped.

 

Tesla plunged 12%, hitting its lowest level since August 2020, following disappointing fourth-quarter deliveries. Apple dipped 3.7% on reports that it will cut production due to weak demand.

 

Data showed that U.S. construction spending unexpectedly rebounded in November, lifted by gains in nonresidential structures, but single-family homebuilding continued to be hammered by higher mortgage rates.

 

US 10-year treasury yield fell 9 bps to 3.743%. Dollar index rose 1.2% to 104.69. Gold rose 0.8% to $1839 per ounce.

 

China's Caixin purchasing managers’ index showed further declines in factory activity on surging Covid-19 infections.

 

Brent futures for March delivery plunged 4.2% to $82.33 a barrel, the largest daily decline in more than three months. U.S. crude fell 3.9% to $77.15 per barrel, its biggest fall in more than a month.

 

European markets gained 0.4%-1.4%. German consumer prices rose by 9.6% y-o-y in December, which was lower than expected 10.7% rise.

 

AT HOME

 

Benchmark indices inched up a fifth of a percent, extending the winning streak to second straight day and closing at the highest level after 20th December, 2022. Sensex settled at 61294, up 126 points while Nifty added 35 points to finish at 18232. Nifty mid-cap and small-cap indices gained nearly quarter of a percent each. Nifty Consumer Durables Index climbed 1.3%, becoming top gainer among the sectoral indices, followed by 0.8% higher Healthcare, Financial Services and IT indices. Media and Metal indices slipped 0.7% and 0.5% respectively, becoming top losers.

 

FIIs net sold stocks, index futures and stock futures worth Rs 628 cr, 666 cr and 155 cr respectively. DIIs were net buyers to the tune of Rs 351 cr.

 

Rupee depreciated 14 paise to end at 82.88/$.

 

OUTLOOK

 

Today morning, Hang Seng is up 1%, Shanghai is flat while Nikkei is down 1.3%. SGX Nifty is suggesting around 60 points lower start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 18400, continued to be next upside target/resistance to eye while 17967 continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to touch a high of 18252 before closing at 18232.

 

34-DMA, placed around 18390, continues to be next upside target/resistance to eye; 18000-17970 is the immediate support zone, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43600, the 78.6% retracement level of the recent 44151-41569 fall, continues to be next upside target, above which, 44151, the top made in Mid-December, would be the next level to eye. 42500 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.