NIFTY RETREATS FROM 12294 HURDLE; 12118 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY RETREATS FROM 12294 HURDLE; 12118 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell 0.6%-0.7%, as investors took off some profits on the second last trading day of the calendar 2019.

The South China Morning Post reported yesterday that Chinese Vice Premier Liu He will visit Washington this week to sign the agreement. White House trade advisor Peter Navarro said that the signing will likely happen within next week or so with both sides waiting for the translation.

Data on Friday showed the trade deficit shrank to its narrowest since 2016 in November.

WTI futures fell 4 cents to settle at $61.88 per barrel while Brent futures gained 28 cents to settle at $68.44.

European markets fell 0.7%-1.1%.

AT HOME

Sensex ended marginally lower while Nifty inched up a bit on the second last trading day of the calendar 2019. Sensex settled at 41558, down 17 points while Nifty added 10 points to finish at 12255. BSE mid-cap and small-cap indices outperformed, rising 0.3% and 0.8% respectively. BSE Auto and Metal indices climbed 1.4% and 1.2% respectively, becoming top gainers among the sectoral indices while IT index and Bankex were the top losers, down 0.3% each.

FIIs net sold stocks, index futures and stock futures worth Rs 130 cr, 337 cr and 98 cr respectively. DIIs were net buyers to the tune of Rs 201 cr.

Rupee appreciated 4 paise to end at 71.31/$.

OUTLOOK

China's December manufacturing PMI has come in unchanged at 50.2 month-on-month.

Today, markets in Japan and South Korea are closed, while Hong Kong, Singapore and Australia will end their trading day earlier. Meanwhile, Shanghai is little changed and Hang Seng is down 0.3% at the time of writing this report. SGX Nifty is suggesting about 45 points lower start for our market.

In yesterday's report we had said that 12294, the top made on 20th December, was the upside resistance to eye while, 12118, the bottom made last week, was the immediate support.

Nifty, after touching a high of 12286, eased to end at 12255 and is set to open near 12200 today.

12294, the top made on 20th December, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 12425, where an upward sloping trendline adjoining tops made in September and November is placed, would be the next major target/resistance to eye.

12118, the bottom made last week, continues to be immediate support.

12293-12118 IS THE IMMEDIATE RANGE

12293-12118 IS THE IMMEDIATE RANGE

WORLD MARKETS

Dow rose 0.1%, S & P 500 ended flat while Nasdaq fell 0.2% on Friday, with the Nasdaq snapping a 11-day winning streak.

Data overnight showed a solid rebound for industrial profits in China, further boosting sentiment.

Brent futures gained 18 cents to trade at $68.10 per barrel, its highest level since mid-September. WTI contract gained 4 cents to settle at $61.72 per barrel.

Main European markets gained 0.1%-0.3%.

For the week, US indices gained 0.6%-0.9%.  WTI ended the week with a gain of more than 2%, for the fourth straight positive week.

AT HOME

Benchmark indices soared a percent, breaking 3-day losing streak. Sensex settled at 41575, up 411 points while Nifty added 119 points to finish at 12245. BSE mid-cap and small-cap indices rose 0.9% and 0.8% respectively. Except 0.1% lower Consumer Durables index, all the BSE sectoral indices ended in green with Energy and Realty indices leading the tally, up 1.7% and 1.6% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 81 cr, 74 cr and 807 cr respectively. DIIs were net buyers to the tune of Rs 126 cr.

Rupee depreciated 4 paise to end at 71.35/$.

For the week, Sensex and Nifty fell 0.2% each, breaking 2-week rising streak.

OUTLOOK

Today morning, Asian markets are trading with cuts of  0.1%-0.5% and SGX Nifty is suggesting a flattish start for our market.

After Nifty broke 12155 support, we had said that 20-DMA, placed around 12080, was the next downside support and 12240 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

Nifty on Friday soared to touch a high of 12258 before closing at 12245 and is set to open flat today.

12294, the top made on 20th December, is the upside resistance to eye, upon crossover of which, 12425, where an upward sloping trendline adjoining tops made in September and November is placed, would be the next major target/resistance to eye.

12118, the bottom made last week, is the immediate support.

12080, 12030 ARE DOWNSIDE SUPPORTS; 12240 IS IMMEDIATE HURDLE

12080, 12030 ARE DOWNSIDE SUPPORTS; 12240 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 0.4%-0.8% to hit fresh record highs. Nasdaq topped the 9,000 mark for the first time ever.

Amazon jumped more than 4% after the e-commerce giant said the holiday shopping season broke all records

U.S. weekly jobless claims decreased 13,000 to a seasonally adjusted 222,000 for the week ended Dec. 21, slightly higher than estimates of 220,000.

In a regular press briefing yesterday, the Chinese Commerce Ministry said China is in close touch with the U.S. on signing the initial trade pact

Brent gained 71 cents, or 1%, to trade at $67.91 while WTI gained 57 cents, or 0.93%, to settle at $61.88 per barrel.

European markets continued to remain shut.

AT HOME

Benchmark indices slipped seven tenth of a percent, extending the losing streak to third straight day. Sensex lost 297 points to settle at 41163 while Nifty finished at 12126, down 88 points. BSE mid-cap index fell 0.1% while small-cap index rose 0.4%.  BSE Telecom and Energy indices tumbled 1.7% and 1.5% respectively, becoming top losers among the sectoral indices while Metal and Basic Material indices were the top gainers, up 0.7% and 0.3% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 504 cr, 1083 cr and 275 cr respectively. DIIs were net buyers to the tune of Rs 120 cr.

Rupee depreciated 4 paise to end at 71.31/$.

OUTLOOK

Today morning, Nikkei is little changed while Hang Seng and Shanghai are up 0.3% and 1% respectively. SGX Nifty is suggesting about 25 points higher start for our market.

Readers would recall that we had turn our view on Nifty positive ever since 11980 hurdle was taken out and had been asking holding on to long positions with a trailing stop-loss.

After the benchmark hit a high of 12293, we had advised trailing the stop-loss to 12155.

The benchmark yesterday broke this support and made a low of 12118 before closing at 12126.

20-DMA, placed around 12080, is the next downside support. If that gives way, 34-DMA, placed around 12030, would be the crucial support to eye.

12240 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

STAY LONG WITH THE STOP-LOSS OF 12155

STAY LONG WITH THE STOP-LOSS OF 12155

WORLD MARKETS

US and European markets were shut yesterday for Christmas holiday.

On Tuesday, US indices ended little changed.

President Trump said Tuesday the trade deal with China is getting done, adding there will be a signing ceremony with Chinese leader Xi Jinping.

Brent crude rose 81 cents, or 1.22%, to $67.20 a barrel, while U.S. WTI gained 59 cents, or 1%, to settle at $61.11 per barrel.

In Europe, FTSE rose 0.1% while CAC ended flat.

AT HOME

Benchmark indices slipped four tenth of a percent, extending the losing streak to second straight day. Sensex lost 181 points to settle at 41461 while Nifty finished at 12214, down 48 points. BSE mid-cap and small-cap indices ended little changed. BSE Energy and Oil & Gas indices tumbled 1.2% and 0.9% respectively, becoming top losers among the sectoral indices while Metal and Realty indices were the top gainers, up 0.6% and each.

FIIs net sold stocks, index futures and stock futures worth Rs 114 cr, 469 cr and 236 cr respectively. DIIs were net sellers to the tune of Rs 345 cr.

Rupee depreciated 9 paise to end at 71.26/$.

OUTLOOK

Today, Nikkei is up about half a percent, Shanghai is flat while Hang Seng is shut. SGX Nifty is suggesting a flattish start for our market.

In Tuesday's report we had said that "12375, where an upward sloping trendline adjoining tops made in September and November is placed, continues to be next major upside target/resistance zone to eye" and had advised holding on to long positions with the stop-loss of 12155.

Nifty slipped 48 points to close at 12214.

12155 continues to be immediate support on the hourly chart upon breach of which, 20-DMA, placed around 12080, would be the next support to eye.

12294, the top made last week, is now the immediate hurdle, upon crossover of which 12375, where an upward sloping trendline adjoining tops made in September and November is placed, would be the next target to eye.

Meanwhile, trading longs can be held on to with the stop-loss of 12155.

12375 IS NEXT TARGET/RESISTANCE; 12155 CONTINUES TO BE IMMEDIATE SUPPORT

12375 IS NEXT TARGET/RESISTANCE; 12155 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.1%-0.3% to hit fresh-record highs, cheering the news that China will cut import tariffs on a wide range of goods.

China’s finance ministry announced starting January 1, it will lower import tariffs on over 850 products ranging from frozen pork to some types of semiconductors.

New home sales in November totaled 719,000, 13,000 less than expected. Durable goods orders rose 0.1% last month, in line with estimates but down 1.1% from the same month a year ago.

In Europe, FTSE and CAC rose 0.5% and 0.1% respectively while DAX fell 0.1%.

AT HOME

After falling about half a percent, benchmark indices recouped most of the losses in last half an hour to end just marginally lower, nevertheless breaking four-day winning streak. Sensex settled at 41642, down 38 points while Nifty lost 9 points to finish at 12262. BSE mid-cap and small-cap indices fell 0.1% each. BSE Energy and Realty indices slipped 1.3% and 0.6% respectively, becoming top Nifty losers while Auto and Teck indices were the top gainers, up 0.5% and 0.4% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1463 cr, 612 cr and 804 cr respectively. DIIs were net sellers to the tune of Rs 1947 cr.

Rupee depreciated 5 paise to end at 71.17/$.

OUTLOOK

Today morning, Asian markets are trading near flat line and SGX Nifty too is suggesting a flattish start.

Readers would recall that we had turned our view on Nifty positive after 11980 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

After the benchmark achieved 12158 target, we have been working with next target zone of 12350-12400 and had advised trailing stop-loss to 12155 in yesterday's report.

Yesterday, Nifty, after touching a low of 12213, rebounded to close at 12262 and is set to open flat today.

12375, where an upward sloping trendline adjoining tops made in September and November is placed, continues to be next major upside target/resistance zone to eye.

12155 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

TRAIL STOP-LOSS TO 12155

TRAIL STOP-LOSS TO 12155

WORLD MARKETS

US indices gained 0.3%-0.5% on Friday to hit fresh record highs on  continued optimism over US-China trade relations and positive economic data.

President Trump tweeted he had a “very good talk” with Chinese President Xi Jinping about the U.S.-China trade deal, noting “China has already started large scale purchases of agricultural product & more.”

Consumer spending growth for the third quarter was revised higher to 3.2% from 2.9%. Sentiment among consumers also remained strong in December.

Brent crude fell 48 cents, or 0.7%, to $66.06 a barrel. U.S. West Texas Intermediate crude fell 74 cents, or 1.2%, to settle at $60.44.

European markets rose 0.1%-1.2%. U.K. third-quarter GDP grew by 0.4% quarter-on-quarter and 1.1% from the same period last year.

For the week, US indices gained 1.2%-2.1% with the S & P 500 extending the winning streak to fourth consecutive week. In Europe, FTSE soared 3.1%, CAC gained 1.7% while DAX rose 0.3%. In Asia, except 0.9% lower Nikkei, other markets gained 0.7%-1.6% with India on the top.

AT HOME

Benchmark indices ended marginally higher after trading in a narrow range, extending the winning streak to fourth straight day and hitting fresh record highs. Sensex settled at 41681, up 8 points while Nifty added 12 points to finish at 12271. BSE mid-cap index rose 0.2% while small-cap index ended a tad lower. BSE Consumer Durables and Telecom indices climbed 1.2% and 0.9% respectively, becoming top gainers among the sectoral indices while Healthcare and Auto indices were the top losers, down 0.4% each.

FIIs net bought stocks, index futures and stock futures worth Rs 339 cr, 708 cr and 1179 cr respectively. DIIs were net sellers to the tune of Rs 285 cr.

Rupee depreciated 9 paise to end at 71.12/$.

For the week, Sensex and Nifty gained 1.6% and 1.5% respectively, extending the winning streak to second consecutive week. BSE mid-cap index however ended flat while small-cap index rose just 0.4%.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally higher start for our market.

Just to reiterate, after 12158 target was achieved, we have been working with next upside target of upward sloping trendline adjoining tops made in September and November, which is currently placed around 12360.

Nifty, on Friday, touched a high of 12293 before closing at 12271 and is set to open marginally higher today.

Upward sloping trendline adjoining tops made in September and November, which is currently placed around 12360, continues to be next upside target/resistance to eye.

Immediate support on the hourly chart has moved up to 12155, with the stop-loss of which, trading longs should be held on to.

TRAIL STOP-LOSS TO 12150

TRAIL STOP-LOSS TO 12150

WORLD MARKETS

US indices climbed 0.5%-0.7%, shrugging off news of U.S. President Donald Trump’s impeachment and hitting a fresh record highs.

The Democrat-led House of Representatives voted Wednesday to impeach Trump and he will now face a trial in the Republican-controlled Senate. Markets largely shrugged off impeachment news as the chances of a trial conviction in the Senate are low.

Weekly jobless claims fell to 234,000 from 252,000 the week before, the expected figure being 225000. The Philadelphia Federal Reserve’s business conditions index fell to 0.3 in December from 10.4 in the previous month. Economists expected the index to slip to 8.

A new North American trade deal was passed yesterday with the United States-Mexico-Canada Agreement replacing the North American Free Trade Agreement.

Brent crude gained 37 cents to settle at $66.54 per barrel, for its sixth straight day of gains. U.S. West Texas Intermediate crude gained 29 cents to settle at $61.22 per barrel.

In Europe, FTSE and CAC rose 0.4% and 0.2% respectively while DAX eased 0.1%. The Bank of England held its main interest rate steady at 0.75% with its rate-setting committee voting 7-2 in favor of keeping the current level, and cut its fourth-quarter U.K. GDP growth forecast from +0.2% to +0.1%.

AT HOME

Benchmark indices gained a third of a percent, hitting yet another record high and extending the winning streak to third straight day. Sensex added 115 points to settle at 41673 while Nifty finished at 12259, up 38 points. BSE mid-cap and small-cap indices rose 0.2% and 0.1% respectively. BSE Telecom and Energy indices climbed 2% and 1.4% respectively, becoming top gainers among the sectoral indices while Finance and Capital Goods indices fell the most, losing 0.3% each.

FIIs net bought stocks, index futures and stock futures worth Rs 739 cr, 819 cr and 334 cr respectively. DIIs were net sellers to the tune of Rs 494 cr.

Rupee depreciated 6 paise to end at 71.03/$.

OUTLOOK

Today morning, Nikkei is off 0.3%, Hang Seng is flat while Shanghai is up 0.1%. SGX Nifty is suggesting a flattish start for our market.

Just to reiterate, we had turned our view on Nifty positive after 11980 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

After the benchmark achieved 12158 target, we have been working with next target of around 12330.

The benchmark yesterday touched a high of 12268 before closing at 12259.

Upward sloping trendline adjoining tops made in September and November, which is now placed around 12350, continues to be next major upside target to eye.

Immediate support on the hourly chart has moved up to 12150, with the stop-loss of which, trading longs can be held on to.

TRAIL STOP-LOSS TO 12095

TRAIL STOP-LOSS TO 12095

WORLD MARKETS

Dow and S & P 500 ended marginally lower to break five-day winning streak. Nasdaq ended marginally in the green.

FedEx nosedived more than 9% on disappointing quarterly numbers.

Brent futures gained 12 cents to trade at $66.22 a barrel, while U.S. WTI lost 1 cent to settle at $60.93.

In Europe, FTSE gained 0.2% while DAX and CAC fell 0.5% and 0.2% respectively.

The German Ifo business climate survey showed that business morale rose more than expected in December to hit a six-month high. British inflation held steady at a three-year low of 1.5% in November while euro zone inflation accelerated to 1% year-on-year in November from 0.7% in October.

AT HOME

Benchmark indices climbed half a percent, notching fresh record highs. Sensex added 206 points to settle at 41558 while Nifty finished at 12221, up 57 points. BSE mid-cap and small-cap indices however fell 0.2% and 0.05% respectively. BSE Metal and Healthcare indices gained 0.8% and 0.7% respectively, becoming top gainers among the sectoral indices while Utilities and Power indices were the top losers, down 0.8% and 0.7% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1837 cr, 667 cr and 208 cr respectively. DIIs were net sellers to the tune of Rs 1268 cr.

Rupee ended unchanged at 70.97/$.

GST Council, in its 38th meeting, chose not to tamper with the rates despite pressure to boost revenues. Council meanwhile, voted for uniform rate of 28% on lotteries across the country.

Tata Motors slipped on news that the National Company Law Appellate Tribunal (NCLAT) restored former Tata group Chairman Cyrus Mistry as executive chairman of Tata Group and also held the appointment of N. Chandra as executive chairman illegal.

OUTLOOK

In a latest development, a majority of the House of Representatives have voted to impeach President Donald Trump for abuse of power. The vote marks only the third time in American history that the House has impeached a president.

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points lower start for our market.

At the risk of repeating, we had turned our view on Nifty positive after 11980 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

After the benchmark achieved 12158 target, we have been working with next target of around 12330.

The benchmark yesterday touched a high of 12237 before closing at 12221 and is set to open near 12200 today.

Upward sloping trendline adjoining tops made in September and November, which is now placed around 12340, continues to be next major upside target to eye.

Immediate support on the hourly chart has moved up to 12095, with the stop-loss of which, trading longs can be held on to.

NIFTY ACHIEVES 12158 TARGET; TRAIL STOP-LOSS TO 12030

NIFTY ACHIEVES 12158 TARGET; TRAIL STOP-LOSS TO 12030

WORLD MARKETS

US indices ended marginally higher, hitting fresh record highs and extending the winning streak to fifth straight day.

U.S. housing starts rose more than expected in November as building permits surged to a 12½-year high.

Brent crude rose 67 cents to $66.01 a barrel while WTI crude gained 73 cents to settle at a 3-month high of $60.94.

The British pound dropped more than 1% against the dollar  amid reports that U.K. Prime Minister Boris Johnson will amend the Brexit bill, explicitly ruling out any extension to the transition period beyond December 2020. That would leave little time to reach a trade deal with the European Union, raising the risks of a no-deal Brexit.

In Europe, FTSE rose 0.1% but DAX and CAC fell 0.9% and 0.4% respectively.

AT HOME

Benchmark indices soared a percent to hit fresh record intraday as well as closing highs. Sensex settled at 41352, up 413 points while Nifty added 111 points to finish at 12165. BSE mid-cap and small-cap indices gained 0.4% and  0.7% respectively. BSE Telecom and Metal indices climbed 3.3% and 3% respectively, becoming top gainers among the sectoral indices while Consumer Durables index fell 0.7%, becoming top loser, followed by 0.2% lower Healthcare and Realty indices.

FIIs net bought stocks and stock futures worth Rs 1248 cr and 660 cr respectively but net sold index futures worth Rs 44 cr. DIIs were net sellers to the tune of Rs 908 cr.

Rupee appreciated 2 paise to end at 70.97/$.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points higher start for our market.

Readers would recall that we had turned our view on Nifty positive afer 11980 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss. After the benchmark achieved 12080 target, we were working with next target of 12158, the top made in November. We had also said that once 12158 is taken out, 12325, where an upward sloping trendline adjoining tops made in September and November is placed, would be the next target to eye.

The benchmark yesterday surged to touch a high of 12182 before closing at 12165, achieving 12158 target and vindicating our view.

Upward sloping trendline adjoining tops made in September and November, placed around 12330, continues to be next major upside target to eye.

Immediate support on the hourly chart has moved up to 12030, with the stop-loss of which, trading longs should be held on to.

GST council meets today and the agenda include a review of GST and compensation cess rates on various items, rate calibrations for addressing the inverted duty structure, compliance measures other than those currently under implementation to augment revenue.

12158 CONTINUES TO BE IMMEDIATE HURDLE; 11950 IMMEDIATE SUPPORT

12158 CONTINUES TO BE IMMEDIATE HURDLE; 11950 IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 0.4%-0.9%, extending the winning streak to fourth straight day and hitting fresh record highs.

National Association of Home Builders/Wells Fargo Housing Market Index rose in December to its highest level in 20 years and data from IHS Markit showed U.S. business activity hit a five-month high in December.

Earlier, data showed Chinese industrial production rose 6.2% in November on a year-over-year basis, topping expectations. Retail sales in China also jumped 8% last month.

Brent futures rose 16 cents to $65.37 a barrel while WTI crude rose 14 cents to settle near a three-month high of $60.21 a barrel.

European markets surge 0.8%-2.2% with FTSE on the top. IHS Markit euro zone flash composite PMI estimates for December came in line with expectations at 50.6, with service sector outperformance offsetting more disappointing manufacturing numbers. Manufacturing PMIs came in at 45.9 against a forecast of 47.3, down from 46.9 in November.

U.K. flash readings showed that both the services and manufacturing sectors had declined more sharply than expected in December. Composite PMI came in at 48.5, its lowest level since mid-2016, suggesting the world’s fifth-largest economy is on course to contract in the fourth quarter.

AT HOME

After rising about four tenth of a percent at the open, Sensex and Nifty slipped to end lower by a 0.2% and 0.3% respectively, breaking 3-day winning streak. Sensex settled at 40938, down 71 points while Nifty lost 33 points to finish at 12054. BSE mid-cap and small-cap indices fell 0.5% and 0.2% respectively. BSE Telecom and Metal indices tumbled 1.6% and 1.4% respectively, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 1.2% and 0.8% respectively.

FIIs net bought stocks worth Rs 728 cr but net sold index futures and stock futures worth Rs 597 cr and 253 cr respectively. DIIs were net sellers to the tune of Rs 796 cr.

Rupee depreciated 18 paise to end at 70.99/$.

November WPI inflation rose to 0.58% from 0.16% in October. Food inflation increased to 9.02% from 7.65%.

OUTLOOK

Today morning, Hang Seng and Nikkei are up 0.8% and 0.4% respectively while Shanghai is flat. SGX Nifty is suggesting about 30 points higher start for our market.

After Nifty achieved 12080 target on Friday, in yesterday's report we had said that 12158, the top made in November, was the next target/resistance to eye and had advised holding on to long positions with the stop-loss of 11950.

Yesterday, Nifty, after touching a high of 12135, slipped to end at 12054 but is set to open higher today.

12158, the top made in November, continues to be important immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 12325, where an upward sloping trendline adjoining tops made in September and November is placed, would be the next target to eye.

11950 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.