21350 IS NEXT SUPPORT; 21700 IMMEDIATE HURDLE

 

21350 IS NEXT SUPPORT; 21700 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P fell 0.8% each while Nasdaq tumbled 1.2%. Nasdaq fell for the fourth consecutive day while S & P 500 had it's third straight negative session.

 

Minutes from that Fed’s December meeting indicated that many officials seemed satisfied with the recent progress made on the inflation front, and deem cuts appropriate at some point in 2024. However, the minutes also suggested that the Fed intends to maintain a restrictive stance in the short-term as uncertainties linger.

 

ISM manufacturing PMI increased to 47.4 last month after being unchanged at 46.7 for two straight months.  It was the 14th consecutive month that the PMI has stayed below 50, which indicates contraction in manufacturing. Monthly Job Openings and Labor Turnover Survey showed November jop openings dropped 62,000 to 8.790 million.

 

U.S. 10-year treasury yield fell 1 bps to 3.92%. Dollar index rose 1.1% to 102.45. Gold fell 0.8% to $2041 per ounce.

 

Oil rose more than 3% as the U.S. warned Houthi militants against further attacks in the Red Sea and OPEC pledged to remain united in supporting prices. WTI crude future gained 3.3% to settle at $72.70 a barrel and Brent future rose 3.1% to $78.25 a barrel.

 

European markets fell 0.5%-1.6%.

 

AT HOME

 

Sensex and Nifty slipped 0.8% and 0.7% respectively, extending the losing streak to second straight session. Sensex settled at 71356, down 535 points while Nifty lost 148 points to finish at 21517. Nifty mid-cap index gained 0.3% while small-cap index ended flat.  Nifty IT and Meal indices tumbled 2.5% and 1.8% respectively, becoming top losers among the sectoral indices while Realty and PSU Bank indices were the top gainers, up 1.2% each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 666 cr, 619 cr and 2833 cr respectively. DIIs were net sellers to the tune of Rs 863 cr.

 

Rupee appreciated 4 paise to end at 83.28/$.

 

India’s HSBC Manufacturing PMI fell to 18-month low of 54.9 in December.

 

OUTLOOK

 

Today morning, Shanghai is up 0.2% but Hang Seng and Nikkei are down 0.4% and 1% respectively. GIFT Nifty is suggesting a modestly higher start for our market.

 

In yesterday's report we had said that upon breach of 21555, 20-DMA, placed around 21300, would be next downside level to eye while 21834, the top made on Monday, was the immediate hurdle.

 

Nifty fell to 21500 before closing at 21517.

 

20-DMA, placed around 21350, is the next downside level to eye; 21700 is the immediate hurdle, upon crossover of which, 21834, the top made on Monday, would be next resistance to eye.

 

For Banknifty, 47300 is the next support; 48200 is immediate hurdle.

Investment in securities market is subject to market risk.

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