19875 CONTINUES TO BE IMMEDIATE HURDLE; 19600-19550 IMMEDIATE SUPPORT AREA

 

19875 CONTINUES TO BE IMMEDIATE HURDLE; 19600-19550 IMMEDIATE SUPPORT AREA

 

WORLD MARKETS

 

U.S. indices gained 0.4%-0.5% ahead of Thanksgiving holiday on Thursday.

 

Initial jobless claims for the week ending Nov. 18 came in at 209,000, which was 20,000 less than estimate and a drop from the prior week. Orders for long-lasting U.S. manufactured goods fell more than expected in October.

 

U.S. 10-year treasury yield, after touching a low of 4.363%, recovered to close 1 bps higher at 4.408%. Dollar index rose 0.3% to 103.88. Gold fell 0.4% to $1990 per ounce.

 

After falling nearly 5% on the news of postponement of OPEC meeting, oil recovered to end modestly lower. WTI crude settled at $77.10 a barrel, down 0.9% and Brent contract for January fell 0.6% to $81.96 a barrel.

 

In Europe, FTSE fell 0.2% while DAX and CAC rose 0.4% each.

 

AT HOME

 

After falling more than half a percent from the morning highs, benchmark indices recouped most of the lost ground in noon recovery to end marginally higher, extending the winning streak to second straight day. Sensex settled at 66023, up 92 points while Nifty added 28 points to finish at 19811. Nifty mid-cap index rose a third of a percent, extending the winning streak to 15th straight session and hit fresh record highs. Small-cap index tumbled 1.2%, extending the losing streak to third straight session. Nifty IT and Auto indices gained 0.7% each, becoming top gainers among the sectoral indices, while PSU Bank index slipped 1.1%, becoming top loser, followed by 0.9% lower Metal and Media indices.

 

FIIs net sold stocks and stock futures worth Rs 307 cr and 1102 cr respectively but net bought index futures worth Rs 369 cr. DIIs were net buyers to the tune of Rs 721 cr.

 

Rupee appreciated 5 paise to end at 83.31/$.

 

OUTLOOK

 

Today Japan’s markets are closed due to a public holiday. Hang Seng and Shanghai are trading with cuts of 0.6% and 0.1% respectively while GIFT Nifty is suggesting a flattish 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, after touching a low of 19703, rebounded to end at 19811.

 

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. 19600-19550 is the immediate support area on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43230, the low made yesterday, is the immediate support, upon breach of which, 43000 and 42600, the 61.8% and 78.6% retracement levels of the recent upmove seen since 26th October, would be next downside levels to eye; 43800 is the immediate hurdle.

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