21200 NEXT UPSIDE LEVEL TO EYE; 20769 IS IMMEDIATE SUPPORT

 

21200 NEXT UPSIDE LEVEL TO EYE; 20769 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices surged 1.4% each with Dow hitting a record high after Federal Reserve laid out the timeline for cuts in 2024 and beyond.

 

Fed held the benchmark overnight borrowing rate steady in the 5.25% to 5.5% range as expected, but more importantly it forecast three rate cuts in 2024, which were more than it had previously indicated. Fed also cut the forecasts for the core personal consumption expenditures price index — it's favored inflation gauge— to 2.4% in 2024 and 2.2% in 2025, down from 2.6% and 2.3% respectively in its previous forecasts.

 

U.S. producer price index was unchanged for November, against the estimate for a 0.1% increase.

 

U.S. 10-year treasury yield tumbled 18 bps to 4.02%, it's lowest level since August. Dollar index slipped 0.9% to 102.90. Gold jumped 2.4% to $2027 per ounce.

 

Brent crude futures rose 1.4% to $74.26 a barrel and WTI crude futures gained 1.2% to settle at $69.47 a barrel.

 

In Europe, FTSE inched up 0.1% while DAX and CAC fell 0.2% each.

 

AT HOME

 

After falling two-third of a percent in the first half, benchmark indices recouped all the losses to end marginally in the green. Sensex settled at 69584, up 33 points while Nifty added 20 points to finish at 20926. Nifty mid-cap and small-cap indices surged 0.9% each, both hitting fresh record highs. Nifty Realty and Healthcare indices climbed 1.6% and 1.2% respectively, becoming top gainers among the sectoral indices while IT index tumbled 1.3%, becoming top loser, followed by 0.1% lower Private Bank index.

 

FIIs net bought stocks worth Rs 4711 cr but net sold index futures and stock futures worth Rs 861 cr and 2460 cr respectively. DIIs were net sellers to the tune of Rs 958 cr.

 

Rupee depreciated 1 paise to end at 83.40/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 1.2% and 0.1% respectively while Nikkei is down 0.2%. GIFT Nifty is suggesting nearly 200 points gap-up start for our market.

 

In yesterday's report we had said that 21038, the top made on Tuesday, was the immediate hurdle while 20850 was the immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty broke 20850 and plunged all the way to 20769, but rebounded from there to end at 20926.

 

The benchmark is set to open near 21100 today.

 

21200 is the next upside level to eye for Nifty; 20769, the low made yesterday, is the immediate support to eye.

 

For Banknifty, 48000, around which a rising trendline adjoining tops made in December 2022 and July 2023 is placed, continues to be 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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