21550 CONTINUES TO BE IMMEDIATE HURDLE; 21137 IMMEDIATE SUPPORT

 

21550 CONTINUES TO BE IMMEDIATE HURDLE; 21137 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

On Thursday, U.S. indices gained 0.2%-0.6% with the S & P 500 and Nasdaq extending the winning streak to sixth straight session as data indicated continued economic growth.

 

U.S. GDP grew at a rate of 3.3% in the fourth quarter, much higher than the 2% expectation and underscoring continued economic resiliency despite interest rate hikes from the Federal Reserve. Core personal consumption expenditures price index — which the Federal Reserve monitors for longer-term inflation trends — rose by 2.7% on an annual basis, down from 5.9% a year ago.

 

Tesla shares plunged more than 12% after the electric vehicle maker posted disappointing fourth-quarter results and warned of lower vehicle volume growth for 2024. On the other hand, IBM jumped more than 9% after posting adjusted earnings and revenue that beat predictions.

 

On Friday, Dow inched up 0.2% while S & P 500 and Nasdaq fell 0.1% and 0.4% respectively, snapping a six-day winning streak.

 

December’s personal consumption expenditures price index, the Fed’s preferred inflation reading, rose 0.2% last month and was up 2.9% from a year ago, excluding food and energy. That’s compared to respective increases of 0.2% and 3% anticipated.

 

U.S. 10-year treasury yield rose 2 bps to 4.14%. Dollar index was flat at 103.47.  Gold eased 0.1% to $2018 per ounce.

 

WTI March contract gained 0.8% to settle at $78.01 a barrel and Brent future settled at $83.55 a barrel, up 1.4%.

 

In Europe, CAC and FTSE surged 2.3% and 1.4% respectively while DAX rose 0.3%.

 

For the week, U.S. indices gained 0.7%-1.1%. Crude oil surged 6.3% for its best week since September 1.

 

AT HOME

 

After falling a percent, benchmark indices recouped half of the losses in last half an hour to end lower by half a percent. Sensex settled at 70700, down 360 points while Nifty lost 101 points to finish at 21352. Nifty mid-cap index fell 0.4% but small-cap index rose half a percent. Nifty IT and Healthcare indices were the top losers among the sectoral indices, down 1.6% and 1.3% respectively while Realty and Media indices were the top gainers, up 0.7% and 0.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2144 cr, 6995 cr and 11149 cr respectively. DIIs were net buyers to the tune of Rs 3475 cr.

 

Rupee ended unchanged at 83.12/$.

 

For the week, Sensex and Nifty fell 1% each, extending the losing streak to second straight week.

 

For the January derivative series, Nifty fell 2%.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 1.4% and 0.9% respectively while Shanghai is flat. GIFT Nifty is suggesting around 135 points gap-up start for our market.

 

In Thursday's report we had said that 21550 continued to be immediate hurdle on the hourly chart, while on the way down, 21137, the low made Wednesday, was the immediate support.

 

Nifty fell to end at 21352 but is set to open near 21450 today.

 

21550 continues to be immediate hurdle on the hourly chart, upon crossover of which, 21750 and 21912, the 61.8% and 78.6% retracement levels of the recent 22124-21137 fall, would be next upside levels to eye; 21137, the bottom made last week, is the immediate support.

 

For Banknifty, 45500 is the immediate hurdle on the hourly chart, upon crossover of which, 46580, the top made last week, would be next upside level to eye; 44430, the low made during the week, around which 200-DMA is also placed, is the immediate support, upon breach of which, 43700, where a trendline adjoining bottoms made in March and October 2023 is placed, would be next downside level to eye.

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