NIFTY REBOUNDS FROM DECEMBER LOW; 20-DMA RESISTANCE AROUND 18050

 

NIFTY REBOUNDS FROM DECEMBER LOW; 20-DMA RESISTANCE AROUND 18050

 

WORLD MARKETS

 

US indices rose 0.3%-0.7% on Friday as investors digested bank earnings and bet inflation would ease in 2023.

 

University of Michigan consumer sentiment survey showed the one-year inflation outlook down to 4%, the third straight monthly decrease and the lowest level since April 2021.

 

JPMorgan Chase posted revenue that beat expectations, but the bank warned it’s setting aside more money to cover credit losses because a “mild recession” is its “central case.” The CEOs of Citigroup and Bank of America also said they’re anticipating a “mild recession.” Wells Fargo profit halved.

 

US 10-year treasury yield rose 6 bps to 3.507%. Dollar index inched lower by 0.1% to 102.18. Gold jumped 1.2% to $1920 per ounce.

 

Brent crude futures rose 1.5% to $85.28 a barrel. WTI futures rose for the seventh-straight session to settle at $79.86 a barrel, up by 1.9%.

 

European markets rose 0.2%-0.7%.

 

For the week, US indices gained 2%-4.8%, with S & P 500 and Nasdaq notching their best week since November. Brent gained 8.6% while WTI rose by 8.4% for their best week since October.

 

AT HOME

 

After falling half a percent in the initial trade, benchmark indices surged a percent from the bottom to end higher by half percent, snapping a 3-day losing streak. Sensex settled at 602161, up 303 points while Nifty added 98 points to finish at 17956. Nifty mid-cap index fell 0.1% but small-cap index rose 0.3%. BSE Metal, Power and Tech indices were the top gainers among the sectoral indices, up 1% each while Consumer Durables index was the top loser, down 0.9%, followed by marginally lower Capital Goods and Healthcare indices.

 

FIIs net sold stocks worth Rs 2422 cr but net bought index futures and stock futures worth Rs 1508 cr and 1157 cr respectively. DIIs were net buyers to the tune of Rs 1953 cr.

 

Rupee appreciated 22 paise to end at 81.33/$.

 

For the week, Sensex and Nifty gained 0.6% and 0.5% respectively.

 

OUTLOOK

 

Today morning, Shanghai and Hang Seng are up 0.7% and 0.4% respectively while Nikkei is down a percent. SGX Nifty is suggesting a modestly higher start for our market.

 

In Friday's report we had said that 17761, the low made Thursday, which roughly coincided with 17774 bottom made in December, was the immediate support, while 17950-18000 was the immediate resistance zone.

 

Nifty surged to touch a high of 17999 before closing at 17956.

 

20-DMA, placed around 18050, is the immediate hurdle, upon crossover of which, 18265, the top made on 30th December, would be the bigger hurdle to eye; 17761, the low made last week, is the immediate support.

 

For Banknifty, 42600-42700 is the immediate resistance zone on the hourly chart, upon crossover of which, 43578, the top made on 4th January, would be next upside target to eye; On the way down, 41597, the bottom made in December, continues to be important support to eye.