20550, 20700 ARE NEXT UPSIDE TARGETS; TRAIL STOP-LOSS TO 20000

 

20550, 20700 ARE NEXT UPSIDE TARGETS; TRAIL STOP-LOSS TO 20000

 

WORLD MARKETS

 

Dow rose 0.8%, while S & P 500 and Nasdaq gained 0.6% each on Friday with the Dow surging to highest level after January 2022 while S & P posted highest close since March 2022.

 

Fed Chair Powell, in prepared remarks for an audience at Spelman College in Atlanta, said “the risks of under- and over-tightening are becoming more balanced,” but the Fed is not thinking about lowering rates right now.

 

U.S. November S & P Global final manufacturing PMI came in at 49.4 Vs 50 month-on-month.

 

U.S. 10-year treasury yield fell 13 bps to 4.197%. Dollar index fell 0.3% to 103.19. Gold surged 1.8% to $2072 per ounce.

 

Brent crude futures for February dropped 2.5% to $78.84 a barrel while WTI futures fell 2.6% to $74.01 a barrel. The fall came after the Organization of the Petroleum Exporting Countries coalition and its allies, known as OPEC+, announced there would be no formal extension of production cuts. However, Saudi Arabia extended its 1 million barrel per day voluntary cut into the first quarter, and other members announced their own reductions.

 

European markets gained 0.5%-1.1%.

 

For the week, Dow surged 2.4% while S & P 500 and Nasdaq inched up 0.8% and 0.4% respectively, all extending the winning streak to fifth straight week.

 

AT HOME

 

Benchmark indices gained seven tenth of a percent each, extending the winning streak to fourth straight session and with Nifty hitting fresh record high. Sensex settled at 67481, up 492 points while Nifty added 135 points to finish at 20268. Nifty mid-cap and small-cap indices climbed 1.1% and 0.5% respectively, both hitting fresh record highs. Except 0.4% lower Auto index, all the NSE sectoral indices ended higher, with Media and PSU Bank indices being the top gainers, up 2.6% and 1.9% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1590 cr, 703 cr and 4683 cr respectively. DIIs were net buyers to the tune of Rs 1448 cr.

 

Rupee appreciated 11 paise to end at 83.29/$.

 

For the week, Sensex and Nifty climbed 2.3% and 2.4% respectively, extending the winning streak to fifth consecutive week and the latter hitting fresh record highs.

 

In the Assembly election result announced yesterday, BJP clinched Rajasthan and Chhattisgarh from Congress while retained Madhya Pradesh with a two-third majority. Congress won Telangana.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.6% and 0.2% respectively but Nikkei is down 0.4%. GIFT Nifty is suggesting nearly 260 points gap-up start for our market.

 

In Friday's session, we had advised trailing stop-loss in longs to 19900.

 

On Friday, Nifty rose to 20291 before closing at 20267 and is set to open near 20500 today.

 

20550, around which a rising trendline adjoining tops made in July and September 2023 is placed, is the next upside target above which, 20700, around which a rising trendline adjoining tops made in December 2022 and July 2023 is placed, would be next upside level to eye; 20000 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 45400, the 78.6% retracement level of the fall seen since mid-September, is the next upside level to eye, above which, 46200, around which a trendline adjoining tops made in July and September is placed, would be next upside target. 44200 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.