Friday, November 27, 2020

12730 IS THE NEXT SUPPORT; 13145 IS THE HURDLE

 

12730 IS THE NEXT SUPPORT; 13145 IS THE HURDLE

 

WORLD MARKETS

 

U.S. financial markets were closed yesterday due to the Thanksgiving holiday.

 

Brent crude rose 20 cents, or 0.4%, to $48.81 a barrel while WTI crude was up by 14 cents, or 0.3%, at $45.85.

 

Spot gold rose 0.3% to $1,811.31 per ounce.

 

In Europe, FTSE fell 0.4% while DAX and CAC ended marginally in the red.

 

Meanwhile, questions are being raised over AstraZeneca’s vaccine candidate, for which the firm said combined results revealed it to be 70% effective.

 

AT HOME

 

After falling half a percent in the morning, benchmark indices reversed and surged a percent and half from the bottom of the day to end higher by a percent, recouping two third of yesterday's losses. Sensex settled at 44259, up 431 points while Nifty added 128 points to finish at 12987. BSE mid-cap and small-cap indices rose 0.9% and 0.7% respectively. Except 0.2% lower Oil & Gas index, all the BSE sectoral indices ended in green with Metal index on the top, up 4.1%, followed by 2.2% higher Basic Materials index.

 

FIIs net bought stocks and stock futures worth Rs 2027 cr and 2537 cr respectively but net sold index futures worth Rs 117 cr. DIIs were net sellers to the tune of Rs 3400 cr.

 

Rupee appreciated 3 paise to end at 73.88/$.

 

For the November derivative series, Nifty climbed 11.3%.

 

OUTLOOK

 

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

 

In yesterday's report we had said that 12820 was the immediate support, upon breach of which, 12730, the bottom made last week, would be the next support to eye.

 

Nifty, after touching a low of 12790, rebounded smartly to end at 12987.

 

12730, the low made last week, continues to be next important support to eye.

 

13145, the top made Wednesday, continues to be immediate hurdle.

 

India's Q2 GDP reading will be released today and is expected to show a contraction of 8.9%. In Q1, GDP had contracted 23.9%.

 

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