TRAIL STOP-LOSS TO 21800

 

TRAIL STOP-LOSS TO 21800

 

WORLD MARKETS

 

U.S. indices fell 0.2%-0.6% as bond yields surged past 4% and wall street pored through the latest batch of fourth-quarter earnings.

 

U.S. 10-year treasury yield rose 12 bps to 4.062% after Federal Reserve Governor Christopher Waller indicated that the central bank may ease monetary policy slower than Wall Street had anticipated. Dollar index rose 0.6% to 103.33. Sterling fell 0.8% after British wage growth slowed sharply in the three months through November. Gold slipped 1.3% to $2028 per ounce.

 

Goldman Sachs reported better-than-expected profit and revenue, while Morgan Stanley posted a revenue beat in the fourth quarter. Boeing shares tumbled 8% after Wells Fargo downgraded the company.  AMD shares jumped 8.3% following upbeat analyst commentary on semiconductor demand.

 

WTI crude futures settled $72.40 a barrel, down 0.4%. Brent crude futures rose 0.2% to $78.29 a barrel.

 

European markets fell 0.2%-0.5%. European Central Bank officials have expressed a series of divergent views at the Davos summit so far, but have largely pushed back on market expectations for interest rate cuts starting as soon as the spring. An ECB survey showed consumer expectations of euro zone inflation three years ahead fell in a November poll to 2.2% from 2.5%.

 

Japan’s wholesale price index stayed flat in December from a year ago, with the rate of change slowing for the 12th straight month.

 

AT HOME

 

Benchmark indices fell three tenth of a percent each, snapping a 5-session winning streak. Sensex settled at 73128, down 199 points while Nifty lost 65 points to finish at 22032. Nifty mid-cap and small-cap indices fell 0.4% and 0.5% respectively. Nifty Realty and IT indices tumbled 1.7% and 1.3% respectively, becoming top losers among the sectoral indices while Metal and Oil & Gas indices were the top gainers, up 1% and 0.4% respectively.

 

FIIs net bought stocks worth Rs 657 cr but net sold index futures and stock futures worth Rs 135 cr and 1166 cr respectively. DIIs were net sellers to the tune of Rs 369 cr.

 

Rupee depreciated 19 paise to end at 83.07/$.

 

Metal stocks rose on China stimulus hopes after reports suggested China is considering 1 trillion yuan ($139 billion) of new debt issuance under a so-called special sovereign bond plan.

 

HDFC Bank reported mixed set of numbers as Profit beat estimate but NII was a miss.

 

OUTLOOK

 

Today morning, Nikkei is up 1.6% but Hang Seng and Shanghai are down 2% and 0.6% respectively. GIFT Nifty is suggesting around 190 points gap-down opening for our market.

 

In yesterday's report we had said that 22200-22250 continued to be next target area for Nifty while immediate support on the hourly chart had moved up to 21750, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 22124, slipped to end at 22032. The benchmark is set to open below 21900 today.

 

Immediate support on the hourly chart has moved up to 21800, upon breach of which, 21550-21500 would be next support area; 22124, the top made yesterday, would now act as immediate hurdle; Meanwhile, trading longs can be held on to with the stop-loss of 21800.

 

For Banknifty, 48380 and 48636, the tops made on 5th January and 28th December respectively, are the next upside levels to eye; 47700-47650 is the immediate support zone, below which, 47250 and 47000 would be next downside levels to eye.

 

Asian Paints and LTI Mindtree will report their quarterly earnings today.

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