21200 ABOVE 21038; 20850 IS IMMEDIATE SUPPORT

 

21200 ABOVE 21038; 20850 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 rose half a percent each while Nasdaq gained 0.7%, all three extending the winning streak to fourth consecutive day. Markets parsed the latest inflation numbers and braced for the Federal Reserve’s last interest rate decision.

 

November CPI inched up 0.1% from the prior month as against expectation of a flat reading. Y-o-Y rise of 3.1% was in line with expectations. Core CPI, which excludes volatile food and energy prices, rose 0.3% from the prior month and 4% on the year, both matching estimates.

 

Fed is widely expected to hold the benchmark overnight borrowing rate steady in the 5.25% to 5.5% range, but markets will keenly watch Fed Chair Powell’s commentary for clues into how soon rate cuts can be expected.

 

U.S. 10-year treasury yield fell 3 bps to 4.203%. Dollar index fell 0.3% to 103.81. Gold fell 0.1% to $1979 per ounce.

 

WTI crude plunged 3.8% to $68.61 a barrel while Brent futures shed 3.7% to settle at $73.24 a barrel.

 

Main European markets ended marginally in the red.

 

AT HOME

 

Benchmark indices slipped nearly half a percent, which was their biggest cut in nearly a month and half. Sensex settled at 69551, down 377 points while Nifty lost 90 points to finish at 20906. Nifty mid-cap index fell 0.4% but small-cap index managed to end marginally in the green. Nifty Realty and Oil & Gas indices tumbled 1.8% and 1.3% respectively, becoming top losers among the sectoral indices, while Media and Metal indices were the top gainers, up 0.6% and 0.3% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 77 cr, 1379 cr and 1137 cr respectively. DIIs were net buyers to the tune of Rs 1923 cr.

 

Rupee ended flat at 83.39/$.

 

India's retail inflation accelerated to 5.55% in November from 4.87% in October. Core CPI however eased to 4.1% from 4.3%. Industrial output grew at 11.7% in October, the highest in 16-months.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent while Hang Seng and Shanghai are down 0.7% and 0.5% respectively. GIFT Nifty is suggesting nearly 50 points higher start for our market.

 

In yesterday's report we had said that 21050-21100 continued to be immediate target area, while 20850-20800 was the immediate support zone, with the stop-loss of which, trading longs could be held on to.

 

Nifty slipped to 20867 before closing at 20906.

 

Upon crossover of yesterday's high, i.e. 21038, 21200 would be next upside level to eye; 20850 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 48000, around which a rising trendline adjoining tops made in December 2022 and July 2023 is placed, is the next upside target, above which, 50000 would be the major target to eye; 46800 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

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