12730 IS IMMEDIATE SUPPORT; 12963 IMMEDIATE HURDLE

 

12730 IS IMMEDIATE SUPPORT; 12963 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.4%-0.8% on Friday on concerns over rising new coronavirus cases and questions around central-bank funding for key emergency programs.

 

The U.S. seven-day average of daily new Covid-19 infections rose to 165,029. On Thursday alone, a record 187,833 cases were reported. Many states have rolled back reopening plans and implemented fresh restrictions to curb the spread.

 

Treasury Secretary Steven Mnuchin on Thursday announced plans to allow several of the Federal Reserve’s emergency lending programs to expire on Dec. 31. The Fed however said the programs continue to serve an important role to support the vulnerable economy.

 

JP Morgan downgraded their US first-quarter GDP outlook to a contraction of 1%.

 

Meanwhile, Pfizer and BioNTech said they applied for an emergency use authorization for their vaccine from the Food and Drug Administration. The companies said they can be ready to ship the vaccine within hours after the FDA approves the authorization.

 

Brent crude rose 59 cents, or 1.3%, to $44.79 per barrel while WTI settled 41 cents, or 1%, higher at $42.15 per barrel.

 

European markets rose 0.3%-0.8%

 

For the week, Dow and S & P 500 fell 0.7% and 0.8% respectively, snapping two-week winning streak. Nasdaq managed to gain 0.2%. In Europe, FTSE and DAX rose half a percent each while CAC surged 2.2%. In Asia, Shanghai and Hang Seng rose 2% and 1.1% respectively while Nikkei and Nifty rose 0.6% each. Crude rose 5%, posting third consecutive weekly rise.

 

AT HOME

 

Benchmark indices rose two third of a percent, recouping half of yesterday's steep losses. Sensex added 282 points to settle at 43882 while Nifty finished at 12859, up 87 points. BSE mid-cap and small-cap indices climbed 1.2% and 0.8% respectively. Except 2.8% lower Energy index, all the BSE sectoral indices ended in green, with Telecom and Consumer Durables indices leading the tally, up 4.7% and 2.8% respectively.

 

FIIs net bought stocks and index futures worth Rs 3861 cr and 649 cr respectively but net sold stock futures worth Rs 541 cr. DIIs were net sellers to the tune of Rs 2869 cr.

 

Rupee appreciated 10 paise to end at 74.16/$.

 

For the week, Sensex and Nifty rose 0.6% each, extending the winning streak to third straight week.

 

OUTLOOK

 

Today, Nikkei is closed while Hang Seng is little changed and Shanghai is up 0.2%. SGX Nifty is suggesting around 50 points higher start for our market.

 

12730, the bottom made on Friday, also coincides with the trendline adjoining recent bottoms on the hourly chart and hence is the immediate support to eye. If 12730 breaks, 12571, the bottom made on 11th November, would be the next support.

 

12963, the top made during the week, is the immediate hurdle, upon crossover of which, 13200 would be the next target.

 

Meanwhile, trading longs should be held on to with the stop-loss of 12730.