TRAIL STOP-LOSS TO 18020

 

TRAIL STOP-LOSS TO 18020

 

WORLD MARKETS

 

US indices rose 0.4%-0.8%, snapping a two-day losing streak, after digesting mixed bag of economic data and minutes of the latest Fed meeting.

 

November’s Job Openings and Labor Turnover, or JOLTS, report showed the job market remained strong but the ISM manufacturing index showed manufacturing activity dropping for a second straight month to 48.4 from 49.0 in November, in the weakest reading since May 2020.

 

Minutes from the Fed’s December meeting showed the central bank remained committed to higher interest rates for “some time.”

 

US 10-year treasury yield fell 6 bps to 3.686%. Dollar index fell 0.4% to 104.26. Gold climbed 0.8% to $1854 per ounce.

 

Brent as well as WTI crude plunged nearly 5% each to $77.84 and $72.84 a barrel respectively.

 

In Europe, FTSE rose 0.4% while DAX and CAC surged 2.2% and 2.3% respectively. Germany's December inflation eased to 9.6% and that of France too slowed to 6.7% from a record high 7.1% in November.

 

AT HOME

 

Benchmark indices plunged 1% each, snapping 2-day winning streak, suffering the worst cut after 23^rd December and closing at the lowest level after 26th December. Sensex settled at 60657, down 636 points while Nifty lost 189 points to finish at 18042. Nifty mid-cap and small-cap indices fell 1.1% and 1% respectively.

 

All the NSE sectoral indices ended in red, with Metal and Realty indices being the top losers, down 2.1% and 2% respectively. JSW Steel and Hindalco were the top Nifty losers, down 4.2% and 4% respectively whereas Divi's Lab and Maruti were the top gainers, up 1.1% and 0.4% respectively. BSE advance-decline ratio stood at 1:1.8.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2621 cr, 2605 cr and 2101 cr respectively. DIIs were net buyers to the tune of Rs 774 cr.

 

Rupee appreciated 8 paise to end at 82.80/$.

 

India's December S & P Global Services PMI hit a 6-month high of 58.5 in December, up from 56.4 in November. Composite PMI rose to 59.4 from 56.7.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.6%-1.6% and SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 18390, continued to be next upside target/resistance to eye while 18000-17970 was the immediate support zone, with the stop-loss of which, trading longs could be held on to.

 

Nifty plunged to 18020 before closing at 18042.

 

A breach of yesterday's low, 18020, would confirm a "Sell" on the hourly chart , which can take Nifty close to 17774 bottom made last week; 18265, the top made last week is the immediate hurdle.

 

For Banknifty, 42800-42700 is the immediate supprt area, below which, 42400 would be next downside level to eye; 43600, the 78.6% retracement level of the recent 44151-41569 fall, continues to be immediate hurdle.