19875 CONTINUES TO BE IMMEDIATE HURDLE; 19550 IMMEDIATE SUPPORT

 

19875 CONTINUES TO BE IMMEDIATE HURDLE; 19550 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.2% each while Nasdaq slipped 0.6% after minutes of the latest Fed meeting showed that monetary policy had to be restrictive and had little appetite for rate cuts.

 

“In discussing the policy outlook, participants continued to judge that it was critical that the stance of monetary policy be kept sufficiently restrictive to return inflation to the Committee’s 2 percent objective over time,” the minutes stated.

 

Existing home sales data for October came in at 3.79 million units, versus estimates of 3.9 million. This marked the slowest sales pace since August 2010.

 

U.S. 10-year treasury yield fell 3 bps to 4.395%. Dollar index rose 0.2% to 103.61. Gold jumped 1% to $1998 per ounce.

 

The Brent crude contract for January rose 0.2% to $82.45 a barrel while WTI for January fell 0.1% to $77.77 a barrel.

 

In Europe, DAX was little changed while FTSE and CAC fell 0.2% each.

 

AT HOME

 

Benchmark indices gained four tenth of a percent each, snapping a 2-day losing streak. Sensex settled at 65930, up 275 points while Nifty added 89 points to finish at 19783. Nifty mid-cap index inched up 0.1% but small-cap index fell 0.1%. Nifty Metal index climbed 1.2%, becoming top gainer among the sectoral indices, followed by 1.1% higher Media, Realty and Consumer Durables indices. PSU Bank index was the top loser, down 0.4%, followed by 0.2% lower IT and FMCG indices.

 

FIIs net sold stocks worth Rs 456 cr but net bought index futures and stock futures worth Rs 668 cr and 2286 cr respectively. DIIs were net buyers to the tune of Rs 722 cr.

 

Rupee depreciated 1 paise to end at 83.35/$.

 

OUTLOOK

 

Today morning, Nikkkei is up 0.6% but Hang Seng and Shanghai are down 0.2% each. GIFT Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 19875, the top made last week, continued to be immediate hurdle, while 19550 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 19829 before closing at 19783.

 

19875, the top made last week, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 20222, the top made in September, would be next major target to eye. 19550 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44064, the upper end of the gap created by gap-down opening on 17th November, is the immediate hurdle, above which, 44420, the top made last week, which coincided with 20-week moving average, would be bigger hurdle to eye. 43263 and 42990, the 50% and 61.8% retracement levels of the recent upmove seen since 26th October, are the next downside levels to eye.