NIFTY ACHIEVES 10800 TARGET

 

NIFTY ACHIEVES 10800 TARGET

 

WORLD MARKETS

 

US indices ended higher by 0.2%-0.4% after a choppy session.

 

Weekly unemployment claims totaled 870,000, higher than estimate of 850,000. Continuing claims declined slightly but were still higher than forecast.

 

Reports suggested that House Democrats are preparing a new $2.4 trillion stimulus plan as the party looks to restart negotiations with the White House following talks that fell apart last month.

 

Goldman Sachs cut its fourth quarter projection for US GDP growth to 3% on an annualized basis, down from 6%.

 

Brent crude future rose 8 cents, or 0.2%, to $41.85 a barrel while WTI crude settled 38 cents, or 1%, higher at $40.31 per barrel.

 

European markets fell 0.3%-1.3% as surging coronavirus cases weighed on the sentiment. The U.K.’s finance minister announced a new package of measures to contain unemployment.

 

AT HOME

 

Benchmark indices nosedived 3%, suffering the worst single day fall in four months and extending the losing streak to sixth straight day. Sensex settled at 36553, down 1114 points while Nifty lost 326 points to finish at 10805. Both the indices closed at more than 2-month low. BSE mid-cap and small-cap indices fell 2.1% and 2.3% respectively. All the BSE sectoral indices ended in red with IT and Auto indices leading the losses, down 4.4% and 3.6% respectively.

 

FIIs net sold stocks and index futures worth Rs 1886 cr and 1799 cr respectively but net bought stock futures worth Rs 494 cr. DIIs were net buyers to the tune of Rs 189 cr.

 

Rupee depreciated 32 paise to end at 73.89/$.

 

TCS tumbled on concerns that Tata group might sell a portion of their stake in TCS to raise money to buy Pallonji Mistry family's stake in Tata Sons.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-0.7% and SGX Nifty is suggesting around 100 points higher start for our market.

 

In yesterday's report we had said that 11000, where 34-month moving average was placed, continued to be immediate support, upon breach of which 200-DMA, placed around 10800, would be next major support.

 

Nifty broke 11000 support in the initial trade itself and plunged all the way to 11790 before closing at 10805 and is set to open near 10900 today.

 

10790, the low made yesterday, is the important immediate support to eye. It that breaks, 10400, where 34-week moving average is placed, would be the next meaningful support.

 

On the way up, 11225 is the immediate resistance to eye.