14450, 14625 ARE THE UPSIDE LEVELS TO EYE; TRAIL STOP-LOSS TO 14180

 

14450, 14625 ARE THE UPSIDE LEVELS TO EYE; TRAIL STOP-LOSS TO 14180

 

WORLD MARKETS

 

Nasdaq and S & P 500 rose 1% and 0.6% respectively while Dow rose 0.2% on Friday on optimism that a Democratic-controlled U.S. government will lead to greater fiscal support.

 

The U.S. economy lost 140,000 jobs in December, as against the expectation of a gain of 50,000. It also marked the first job loss since April. The unemployment rate was 6.7%, compared to the 6.8% estimate.

 

Meanwhile, Trump admitted in his own words for the first time on Thursday that the Biden administration will take charge on Jan. 20, having challenged the outcome of the election since Nov. 3.

 

Brent crude climbed 94 cents, or 1.8%, to $55.35 a barrel, and WTI settled $1.41, or 2.8%, higher at $52.24 per barrel.

 

The yield on the benchmark 10-year Treasury note gained 5 bps to 1.124%, its highest level since March 30. The yield on the 30-year Treasury bond also rose 4 basis points to 1.893%, it's highest since March. Spot gold plunged 3.6% to $1,843.06 per ounce.

 

A laboratory study indicated that the Pfizer and BioNTech vaccine could be effective against the new, highly-transmissible mutations of the virus found in the U.K. and South Africa.

 

European markets gained 0.2%-0.6% with Germany’s DAX index notching a new record high. Eurozone unemployment unexpectedly declined in November, falling to 8.3% from 8.4% in October.

 

Earlier, mainland Chinese shares fell after the New York Stock Exchange’s announcement that it will delist the U.S.-listed stocks of those three Chinese telecommunication giants to comply with an executive order signed by President Trump last year.

 

For the week, the Dow and S&P 500 each gained more than 1%, while the Nasdaq advanced 2.4%.

 

AT HOME

 

Bulls were back to work after two-day rest as benchmark indices soared a percent and half to hit fresh record highs. Sensex settled at 48782, up 689 points while Nifty added 210 points to finish at 14347. Nifty mid-cap and small-cap indices rose 1% and 0.6% respectively. Except 0.9% and 0.5% lower Metal and Telecom indices respectively, all the BSE sectoral indices ended in green, with IT and Auto indices leading the tally, up 3.6% and 3.4% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 6030 cr, 1133 cr and 685 cr respectively. DIIs were net sellers to the tune of Rs 2373 cr.

 

Rupee appreciated 9 paise to end at 73.23/$.

 

For the week, Sensex and Nifty climbed 1.9% and 2.3%.

 

TCS started the earnings season with a bang as results beat estimates on all counts. Constant currency revenue growth stood at 4.1% while dollar revenue grew by 5.1%. Margins improved to 26.6% and were best in 5-years. The management also guided for a double digit growth next year.

 

OUTLOOK

 

Today, Nikkei is shut while Hang Seng and Shanghai are up 0.6% and 0.1% respectively. SGX Nifty is suggesting around 50 points higher start for our market.

 

In Friday's report we had said that 14300 continued to upside level to eye, upon crossover of which, 14400-14450 would be the next target zone.

 

Nifty touched a high of 14367 before closing at 14347. The benchmark is set to open near 14400 today.

 

14450 is the next upside target, upon crossover of which 14625 would be the next level to eye.

 

34-hour average, placed around 14180, would work as the immediate support, upon breach of which, 14100, where a trendline adjoining recent bottoms on the hourly chart is placed, would be the next support to eye.

 

Meanwhile, trading longs should be held on to with the stop-loss of 14180.

 

14300 CONTINUES TO BE UPSIDE LEVEL TO EYE; 14000 CONTINUES TO BE IMMEDIATE SUPPORT

 

14300 CONTINUES TO BE UPSIDE LEVEL TO EYE; 14000 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Nasdaq surged 2.6% while S & P 500 and Dow rose 1.5% and 0.7% respectively to hit record closing highs, after Congress confirmed the election of Joe Biden as president.

 

Weekly claims totaled 787,000 for the week ended Jan. 2, less than the estimate of 815,000 and a slight decrease from the upwardly revised total of 790,000 for the previous week. Institute for Supply Management’s non-manufacturing activity index rose to 57.2 last month from 55.9 in November.

 

Minutes from the latest Fed meeting, released Wednesday, showed the central bank will give the public plenty of notice before cutting back on its bond-buying program.

 

Dollar index rose 0.53% to 89.785. US 10-year Treasury yield rose 4 basis points to 1.081%, its highest level since March 20. Spot gold fell 0.3% to $1,913.87 per ounce.

 

Brent as well as WTI crude rose 0.4% each to $54.52 and $50.86 per barrel respectively.

 

European markets rose 0.2%-0.7%. Euro zone economic sentiment improved in December, but inflation remained negative, coming in at -0.3% according to a flash estimate.

 

Meanwhile, Japan declared a state of emergency in Tokyo and three other areas in a bid to combat a rise in coronavirus infections.

 

AT HOME

 

After opening higher by nearly eight tenth of a percent, benchmark indices gave away also the gains through the session to end marginally in the red, extending the losing streak to second straight day. Sensex settled at 48093, down 80 points while Nifty lost 9 points to finish at 14137. Nifty mid-cap and small-cap indices however climbed 1.4% each, with the former extending the winning streak to seventh consecutive day while the later rising for the sixth day in last seven. BSE Metal and Telecom indices soared 3.7% and 3% respectively, becoming top gainers among the sectoral indices while FMCG and IT indices were the top losers, down 1.1% and 1% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 382 cr, 217 cr and 171 cr respectively. DIIs were net sellers to the tune of Rs 990 cr.

 

Rupee depreciated 22 paise to end at 73.32/$.

 

Government released first advance GDP estimates, which estimates GDP contraction of 7.7% in FY21 as compared to the growth rate of 4.2% in 2019-20.

 

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.5% and 0.3% respectively while Shanghai is down half a percent. SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 14300 continued to be upside level to eye and had advised holding on to long positions with the stop-loss of 14000.

 

Nifty, after touching a high of 14256 in the initial trade, slipped to end at 14137 and is set to open near 14200 today.

 

14300 continues to upside level to eye, upon crossover of which, 14400-14450 would be the next target zone.

 

14000 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

 

TCS will report its quarterly earnings after market hours today.

 

14000 CONTINUES TO BE IMMEDIATE SUPPORT; 14300 NEXT TARGET

 

14000 CONTINUES TO BE IMMEDIATE SUPPORT; 14300 NEXT TARGET

 

WORLD MARKETS

 

Dow climbed 1.4% and S & P 500 rose 0.6% but Nasdaq fell 0.6% yesterday as Georgia’s Senate runoff election results rolled in. The upmove came on hopes that a Democrat-held Senate would push for a more robust stimulus package.

 

Democrats were projected to win both the Senate seats, which will create a 50-50 Senate that Democrats will control, due to the tiebreaking vote in Vice President-elect Kamala Harris. .

 

Pro-Trump rioters stormed the Capitol when lawmakers had just started the procedural process of counting the Electoral College votes and formally declaring President-elect Joe Biden the winner. Wednesday evening, the Capitol building was secured and Congress reconvened to continue the process to confirm Biden’s win. Senate Majority Leader Mitch McConnell said the Senate will certify the winner of the 2020 election Wednesday night.

 

Brent crude gained 32 cents to $53.92 per barrel while WTI crude futures settled 70 cents, or 1.4%, higher at $50.63 per barrel.

 

Spot gold tumbled 2.2% to $1,907.21 per ounce as the 10-year U.S. Treasury yield rose above 1% for the first time since March,

 

European markets surged 1.2%-3.5% with FTSE on the top. Eurozone final composite PMI for December came in at 49.1, up from November’s 45.3 but significantly below an earlier flash estimate of 49.8. Germany on Tuesday extending its own lockdown until Jan. 31 after England entered a third national lockdown.

 

Meanwhile, concerns are growing over a new strain of the virus found in South Africa; former FDA chief Dr. Scott Gottlieb warned that the new variant appears to inhibit antibody drugs. 

 

AT HOME

 

Sensex and Nifty fell 0.5% and 0.4% respectively, snapping 3-day winning streak. Sesnex settled at 48174, down 263 points while Nifty lost 53 points to finish at 14146. Nifty mid-cap index rose 0.6% while small-cap index ended marginally in the red. BSE Metal and Power indices were the top gainers among the sectoral indices, rising 2.2% and 1.5% respectively, while Energy and FMCG indices were the top losers, down 2% and 1.2% respectively.

 

FIIs net sold stocks and index futures worth Rs 484 cr and 295 cr respectively but net bought stock futures worth Rs 97 cr. DIIs were net sellers to the tune of Rs 380 cr.

 

Rupee appreciated 7 paise to end at 73.10/$.

 

India's IHS Markit Services PMI eased to 52.3 in December from 53.7 in November. The composite PMI fell to 54.9 from 56.3.

 

OUTLOOK

 

Today morning, Nikkei is trading with gains of 2% while Shanghai and Hang Seng are up 0.3% and 0.1% respectively.  SGX Nifty is suggesting around 70 points higher start for our market. 

 

In yesterday's report we had said that 14300 continued to be next upside target and had advised trailing stop-loss in long positions to 14000.

 

Nifty, after touching a high of 14244 in the initial trade, plunged to 14039 and rebounded from there to end at 14146. The benchmark is set to open near 14200 today.

 

14300 continues to upside level to eye, upon crossover of which, 14400-14450 would be the next target zone.

 

14000 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

 

TRAIL STOP-LOSS TO 14000

 

TRAIL STOP-LOSS TO 14000

 

WORLD MARKETS

 

US indices rose 0.6%-1%, with Energy stock leading following surge in crude oil prices and awaiting results from Georgia runoff elections.

 

WTI as well as Brent crude surged nearly 5% each to $49.93 and $53.60 per barrel, following a surprise announcement by Saudi Arabia of a 1 million barrel per day production cut beginning in February and extending through March. Meanwhile, OPEC and its oil-producing allies, known as OPEC+, agreed to hold output largely steady in February.

 

U.S. President Trump signed an executive order banning transactions with eight Chinese software applications. That included WeChat Pay and Ant Group’s Alipay.

 

ISM manufacturing index for December rebounded to 60.7, the highest level since August 2018 and beating the estimated figure of 57.

 

The dollar index hovered close to April 2018 lowss. Spot gold rose 0.4% to $1,950.34 an ounce.

 

In Europe, except 0.6% higher FTSE, other markets fell 0.4%-0.6% on concerns over the speed of coronavirus vaccine deployment in mainland Europe, and a third national lockdown that has been imposed in England.

 

AT HOME

 

After falling around half a percent in the initial trade, benchmark indices jumped a percent to end higher by half a percent, hitting fresh record highs. Sensex settled at 48437, up 260 points while Nifty added 66 points to finish at 14199. Nifty mid-cap and small-cap indices rose 0.7% and 0.6% respectively.  BSE Bankex and Finance indices climbed 1.5% and 1.3% respectively; becoming top gainers among the sectoral indices while Metal and Energy indices slipped 1.4% and 1.1% respectively, becoming top losers.

 

FIIs net bought stocks worth Rs 986 cr but net sold index futures and stock futures worth Rs 176 cr and 111 cr respectively. DIIs were net sellers to the tune of Rs 490 cr.

 

Rupee depreciated 15 paise to close at 73.17/$.

 

OUTLOOK

 

Today morning, Shanghai is up 0.4% while Nikkei and Hang Seng are down 0.4% and 0.2% respectively. SGX Nifty a flattish start for our market.

 

In yesterday's report we had said that 14300 was the next upside level to eye and had advised trailing stop-loss in long positions to 13953.

 

Nifty, after falling to 14048, rebounded to 14215 before closing at 14199.

 

14300 continues to be next upside target, upon crossover of which, 14400 would be the next level to eye.

 

Immediate support on the hourly chart has moved up to 14000, with the stop-loss of which, trading longs should be held on to.

 

TRAIL STOP-LOSS TO 13953

 

TRAIL STOP-LOSS TO 13953

 

WORLD MARKETS

 

Dow slipped 1.2% while S & P 500 and Nasdaq tumbled 1.5% on concerns over growing number of Covid-19 infections globally and outcome of runoff elections in Georgia.

 

Several cases of a new coronavirus strain have been confirmed across the US. New York state confirmed its first case of the new coronavirus strain yesterday. England imposed a third coronavirus lockdown as the region grapples with a more transmissible variant of Covid-19. Japan is also considering declaring a state of emergency for Tokyo and several neighboring areas as early as Thursday in an attempt to stem the spread of the virus.

 

US markets are also keenly awaiting Tuesday’s Georgia runoff elections, which will determine whether Republicans can hold on to control in the Senate. There are fears that if Democrats gain control of the Senate, increased tax rates and more progressive policies could become reality. However, such an outcome might lead to a bigger and faster spending package, which will help support the market.

 

Brent futures fell 50 cents, or 1%, to $51.30 a barrel, while WTI settled 1.8%, or 90 cents, lower at $47.62 per barrel

 

The dollar index slid to 89.42, a 2-1/2 year low, before rebounding to 89.86. Spot gold climbed 2.4% to $1,943.13 an ounce.

 

In Europe, FTSE and CAC rose 1.7% and 0.7% respectively while DAX was up 0.1%.

 

AT HOME

 

Bulls continued to charge ahead as Sensex and Nifty added 0.6% and 0.8% respectively to hit fresh record highs. Sensex settled at 48176, up 307 points while Nifty added 114 points to finish at 14132. Nifty mid-cap and small-cap indices climbed 1.4% and 1.2% respectively. Except marginally lower Bankex and Consumer Durable indices, all the BSE sectoral indices ended in green, with Metal index on the top, up 5.3%, followed by 2.8% higher Basic Materials index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1843 cr, 943 cr and 781 cr respectively. DIIs were net sellers to the tune of Rs 715 cr.

 

Rupee appreciated 10 paise to close at 73.02/$.

 

The IHS Markit Manufacturing PMI stood at 56.4 in December versus 56.3 in November.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-0.9% and SGX Nifty is suggesting around 90 points lower start for our market.

 

In yesterday's report we had said that 14100 cotinued to be next upside target, upon crossover of which, 14300 would be the next level to eye.

 

Nifty achieved 14100 and went further to touch a high of 14148 before closing at 14132. The benchmark is set to open near 14050 today.

 

14300 is the next upside level to eye.

 

13953, the low made yesterday, would now act as immediate support, with the stop-loss of which, trading longs should be held on to.

 

14100, 14300 ARE UPSIDE TARGETS; 13860 IS IMMEDIATE SUPPORT

 

14100, 14300 ARE UPSIDE TARGETS; 13860 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US and European markets were shut on Friday for the New Year’s Day.

 

China’s official manufacturing PMI released Thursday showed the country’s factory activity expanding in December, albeit at a slower pace compared to November’s reading.

For the week, Dow and S & P 500 climbed 1.4% each while Nasdaq rose 0.6%. In the Europe, DAX and CAC gained 1% and 0.5% respectively but FTSE fell 0.6%. Asian markets gained between 2%-3.2%. WTI crude fell 1.3% to $48.42 per ounce.

 

For the 2020, Nasdaq Composite gained 43.6%, posting its best one-year performance since 2009 while the S&P 500 and Dow rose 16.3% and 7.3% respectively. In Europe, FTSE was down over 14%, marking its worst year since 2008. Meanwhile, the French CAC 40 was down 7%, German DAX up 3.5%. In Asia, Nikkei, Nifty and Shanghai rose 16%, 15% and 14% respectively while Hang Seng fell 3.4%. Brent crude fell 22.5% for the year and WTI was down 21.4%. Gold jumped more than 24% for the year, its best since 2010.

 

AT HOME

 

2021 started on a positive note as benchmark indices gained a fourth of a percent, hitting fresh record intraday as well as closing highs. Sensex settled at 47868, up 117 points while Nifty added 36 points to finish at 14018. Nifty mid-cap and small-cap indices soared 1.2% each. Except 0.2% and 0.1% lower Bankex and Consumer Durables indices respectively, all the BSE sectoral indices ended in green, with Telecom and Industrials indices leading the tally, up 1.4% and 1.3% respectively.

 

FIIs net bought stocks and stock futures worth Rs 506 cr and 524 cr respectively but net sold index futures worth Rs 265 cr. DIIs were net buyers to the tune of Rs 69 cr.

 

Rupee depreciated 5 paise to end at 73.12/$.

 

For the week, Sensex and Nifty gained 2% each.

 

Gross GST revenue collected in the month of December 2020 rose to ₹1,15,174 crore, an all-time monthly high since the implementation of the new tax regime.

 

Maruti December sales rose 20.2% y-o-y to 1.60 lakh units. M & M tractor sales rose 25% to 22417 units while auto sales were down 10.3% at 35187 units. Eicher Motors' total sales rose 37% to 68995 units but VECV sales fell 3% to 4892 units . Ashok Leyland total sales rose 14% to 12762 units. TVS Motor sales rose 17.5% to 2.72 lk units. Hero Motocorp registered 5.3% growth at 4.47 lk units.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are trading with modest gains while Nikkei is down 0.9%. SGX Nifty is suggesting around 50 points higher start for our market.

 

In Friday's report we had said that 14100 continued to be next upside target and had advised trailing stop-loss in long positions to 13860.

 

Nifty touched a high of 14050 before closing at 14018 and is set to open above 14050 today.

 

14100 cotinues to be next upside target, upon crossover of which, 14300 would be the next level to eye.

 

13860, where two bottoms made on Tuesday and Wednesday are placed, is the immediate support, with the stop-loss of which, trading longs should be held on to.

 

TRAIL STOP-LOSS TO 13860

 

TRAIL STOP-LOSS TO 13860

 

WORLD MARKETS

 

Dow and S & P 500 climbed 0.6% each while Nasdaq rose 0.1% on the last day of 2020 after the release of a better-than-expected reading on U.S. weekly jobless claims.

 

Brent crude fell 49 cents, or 1%, to $51.14 a barrel while WTI crude settled 12 cents, or 0.25%, higher at $48.52 per barrel.

 

Jobless claims totaled 787,000 for the week ending Dec. 26, lower than the expected print of 828,000.

 

In Europe, FTSE plunged 1.4% while CAC and DAX fell 0.9% and 0.3% respectively. UK stocks fell on Brexit uncertainty and further restrictions on public life announced by the U.K. government on Wednesday due to the rate of coronavirus infection.

 

For the year, Nasdaq Composite gained 43.6%, posting its best one-year performance since 2009 while the S&P 500 and Dow rose 16.3% and 7.3% respectively. In Europe, FTSE was down over 14% year-to-date, marking its worst year since 2008. Meanwhile, the French CAC 40 was down 7%, German DAX up 3.5%. In Asia, Nikkei, Nifty and Shanghai rose 16%, 15% and 14% respectively while Hang Seng fell 3.4%.

 

Brent crude fell 22.5% for the year and WTI was down 21.4%. Gold jumped more than 24% for the year, its best since 2010.

 

AT HOME

 

Benchmark indices ended little changed on the last day of the calendar 2020. Sensex settled at 47751, up 5 points while Nifty was absolutely flat at 13981. Nifty mid-cap and small-cap indices rose 0.5% and 0.3% respectively. BSE Realty and Consumer Durables indices climbed 1.2% and 1.1% respectively, becoming top gainers among the sectoral indices while Telecom index was the top loser, down 0.8%, followed by 0.5% lower FMCG and Energy indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1135 cr, 19 cr and 348 cr respectively. DIIs were net sellers to the tune of Rs 258 cr.

 

Rupee appreciated 24 paise to end at 73.06/$.

 

For the calendar 2020, Sensex and Nifty gained 15.8% and 14.9% respectively, taking the winning streak to fifth consecutive year. From the bottom made in March, Nifty surged 86%.

 

OUTLOOK

 

Today, most of the world markets are shut for the New Year Day. SGX Nifty, on last trade, is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 14100 was the next upside target to eye and had advised trailing stop-loss in long positions to 13800.

 

Nifty touched a high of 14025 before closing at 13981 and is set to open near yesterday's high today.

 

14100 cotninues to be next upside target, upon crossover of which, 14300 would be the next level to eye.

 

Immediate support on the hourly chart has moved up to 13860, with the stop-loss of which, trading longs should be held on to.