21350 IS IMMEDIATE HURDLE; 20976 IMMEDIATE SUPPORT

 

21350 IS IMMEDIATE HURDLE; 20976 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices rose 0.9%-1.3%, recovering from previous day's steep sell-off.

 

Number of Americans filing new claims for unemployment benefits rose just marginally last week. U.S. GDP increased at a 4.9% annualized rate last quarter, revised down from the previously reported 5.2% pace.

 

U.S. 10-year treasury yield rose 4 bps to 3.892%. Dollar index fell 0.6% to 101.79. Gold rose 0.6% to $2046 per ounce.

 

Oil prices fell after Angola said it would exit the Organization of the Petroleum Exporting Countries (OPEC). Brent crude futures settled down 31 cents at $79.39 a barrel and WTI crude futures fell 33 cents to $73.89 a barrel.

 

European markets fell 0.2%-0.3%.

 

AT HOME

 

After falling about eight tenth of a percent at the open, benchmark indices reversed and surged a percent and third from the bottom to end higher by half a percent. Sensex settled at 70865, up 358 points while Nifty added 105 points to finish at 21255. Nifty mid-cap and small-cap indices surged 1.7% and 1.9% respectively. All the NSE sectoral indices ended higher, with Media and Oil & Gas indices being the top gainers, up 2.5% and 1.7% respectively.

 

FIIs net sold stocks and stock futures worth Rs 1636 cr and 2566 cr respectively but net bought index futures worth Rs 212 cr. DIIs were net buyers to the tune of Rs 1465 cr.

 

Rupee depreciated 11 paise to end at 83.28/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 0.4% and 0.3% respectively while Shanghai is off 0.2%. GIFT Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 20950, the lower end of the gap created by gap-up opening last Thursday, was the next downside level to eye while 21350-21450 was the immediate resistance zone, with the stop-loss of which, trading shorts could be held on to.

 

Nifty, after touching a low of 20976, rebounded to end at 21255.

 

21350 is the immediate hurdle on the hourly chart, upon crossover of which, 21593, the top made on Wednesday, would be the bigger resistance to eye; 20976, the low made yesterday, is the immediate support.

 

For Banknifty, 48200 is the immediate hurdle; 46900 is immediate support.

Investment in securities market is subject to market risk.

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