20222 ABOVE 19875; 19600-19550 CONTINUES TO BE SUPPORT AREA

 

20222 ABOVE 19875; 19600-19550 CONTINUES TO BE SUPPORT AREA

 

WORLD MARKETS

 

On Friday, Dow and S & P 500 gained 0.3% and 0.1% respectively while Nasdaq fell 0.1%. For the week, U.S. indices gained 0.9%-1.3%, extending the winning streak to fourth consecutive week. Yesterday, U.S. indices fell 0.1%-0.2%.

 

Data from the Commerce Department showed new homes sold at a slower than expected pace in October while still showing improvement from a year ago.

 

U.S. 10-year treasury yield fell 9 bps to 4.388%. Dollar index fell 0.2% to 103.19. Gold rose 0.6% to $2014 per ounce.

 

The Brent contract for January fell 0.7% to $79.98 a barrel, while WTI dropped 0.9% to $74.86 a barrel.

 

Main European markets dipped 0.4% each.

 

AT HOME

 

Benchmark indices ended little changed after a rangbound session. Sensex settled at 65970, down 47 points while Nifty lost 7 points to finish at 19794. Nifty mid-cap and small-cap indices gained 0.1% and 0.3% respectively. Nifty Pharma and Metal indices were the top gainers among the sectoral indices, rising 0.9% and 0.7% respectively while IT and FMCG indices were the top losers, down 1% and 0.5% respectively.

 

FIIs net bought stocks and stock futures worth Rs 2625 cr and 1347 cr respectively but net sold index futures worth Rs 2 cr. DIIs were net buyers to the tune of Rs 134 cr.

 

Rupee depreciated 3 paise to end at 83.37/$.

 

For the week, Sensex and Nifty gained 0.3% each, extending the winning streak to fourth straight week and with the latter posting highest weekly close since 15th September.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of upto 0.4% and GIFT Nifty is suggesting around 40 points higher start for our market.

 

In Friday's report we had said that 19875 continued to be immediate hurdle while 19600-19550 was the immediate support area on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty ended little changed at 19795.

 

19875, 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 continues to be immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43800 is the immediate hurdle on the hourly chart, upon crossover of which, 44420, the top made in mid-November, would be next upside level to eye; 43230, the low made last week, which roughly coincided with 200-DMA, is the immediate support.

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