NIFTY RETREATS FROM 20-DMA HURDLE

 

NIFTY RETREATS FROM 20-DMA HURDLE

 

WORLD MARKETS

 

U.S. markets were closed yesterday for a holiday.

 

European markets gained 0.2%-0.3%.

 

Brent as well as WTI crude fell 1.3% each to $84.20 and $78.85 a barrel respectively.

 

AT HOME

 

After rising half a percent at the open, benchmark indices plunged to end lower by a third of a percent. This was the 7th red day in last 9 sessions. Sensex settled at 60092, down 168 points while Nifty lost 61 points to finish at 17894. Nifty mid-cap and small-cap indices fell 0.2% and 0.1% respectively. BSE Utilities and Power indices climbed 1.5% and 1.3% respectively, becoming top gainers among the sectoral indices, while Metal and Telecom indices were the top losers, down 1% and 0.9% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 751 cr, 1165 cr and 774 cr respectively. DIIs were net buyers to the tune of Rs 686 cr.

 

Rupee depreciated 28 paise to end at 81.61/$.

 

India's December WPI inflation eased to 4.95%, the lowest in 22-monhts, Vs 5.85% in the previous month. Core WPI fell to 3.2% from 3.5%.

 

India's December trade deficit rose 12.8% y-o-y to $23.76 bn Vs $ 21.10 bn.

 

OUTLOOK

 

Today morning, Nikkei is up more than a percent but Hang Seng and Shanghai are down 0.6% and 0.2% respectively. SGX Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 20-DMA, placed around 18050, was the immediate hurdle, while 17761, the low made last week, was the immediate support.

 

Nifty, after touching a high of 18050, slipped to end at 17894.

 

18050, the top made yesterday, which exactly coincided with 20-DMA, is the immediate hurdle, upon crossover of which, 18265, the top made on 30th December, would be the next upside level to eye; 17761, the low made last week, continues to be immediate support.