12294-12118 CONTINUES TO BE IMMEDIATE RANGE

12294-12118 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

US indices fell 0.7%-0.8% while Oil and Gold climbed on Friday after the U.S. confirmed that an airstrike killed Iran’s top military commander, ratcheting up geopolitical concerns. A weaker-than-expected reading on the manufacturing also weighed on stocks.

December’s ISM manufacturing index came in at 47.2, the weakest in a decade and lower than the 49 reading expected.

Brent crude climbed $2.42, or 3.6% to $68.67 while WTI gained $1.87, or 3%, to settle at $63.05 per barrel. Gold rose 1.5% to $1,551.8 per ounce. The benchmark 10-year Treasury yield, which moves inversely to the price, dropped to around 1.79%.

In Europe, FTSE rose 0.2%, CAC ended flat while DAX tumbled 1.2%

For the week, Dow and S & P 500 ended marginally in the red while Nasdq rose 0.2%. In Europe, DAX and FTSE fell 1.1% and 0.3% respectively while CAC was up 0.1%. In Asia, Shanghai and Hang Seng gained 2.6% and  0.8% respectively while Indian indices ended modestly lower.

AT HOME

After falling about three fourth of a percent on the back of geopolitical concerns, benchmark indices recouped some of the losses in last half an hour to end lower by four tenth of a percent. Sensex settled at 41464, down 162 points while Nifty lost 55 points to finish at 12226. BSE mid-cap index fell 0.4% while small-cap index ended flat. BSE Power and Auto indices slipped 1.2% each, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 1.5% and 1.1% respectively.

FIIs net bought stocks worth Rs 1263 cr but net sold index futures and stock futures worth Rs 846 cr and 17 cr respectively. DIIs were net sellers to the tune of Rs 1029 cr.

Rupee depreciated 42 paise to end at 71.79/$.

For the week, Sensex and Nifty fell 0.3% and 0.2% respectively, extending the losing streak to second straight week.

 

OUTLOOK

Iran yesterday said that it would no longer abide by uranium enrichment limits established in the 2015 nuclear deal, which the U.S. unilaterally withdrew from in 2018. Iraqui parliament also passed a resolution calling for the government to expel foreign troops from the country.

Meanwhile, US President Donald Trump has threatened to slap sanctions on Iraq.

Today morning, Nikkei is down nearly 2% while Hang Seng and Shanghai are off 0.4% each. SGX Nifty is suggesting about 50 points lower start for our market.

For past couple of days we had been saying that 12118-12294 is the immediate range, a crossover of which, on either side, is required for a fresh move.

Nifty, on Friday, lost 55 points to finish at 12226 and is set to open below 12200 today.

12118, the low made on 26th December, continues to be important immediate support, upon breach of which, 12060 and 11980, the 50% and 67% retracement levels of the recent 11832-12294 upmove, would be next support levels to eye.

12294, the top made in December, continues to be important hurdle, a crossvoer of which is required for a fresh upmove.