12820 IS THE NEXT SUPPORT; 13145 IMMEDIATE HURDLE

 

12820 IS THE NEXT SUPPORT; 13145 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.6% and 0.2% respectively while Nasdaq rose 0.5% ahead of Thursday's Thanksgiving holiday.

 

778,000 people filed for unemployment benefits for the first time last week, higher than the expected number of 733,000.

 

Minutes of the latest Fed meeting showed officials discussing ways of providing more accommodation to the economy as the recovery from the coronavirus pandemic continued.

 

Oil prices climbed to the highest in more than eight months after data showed a surprise drop in U.S. crude inventories last week. Brent crude rose 47 cents, or 1%, to $48.33 a barrel while WTI crude gained 80 cents, or 1.8%, to settle at $45.71 per barrel.

 

US dollar index, after touching a low of 91.941, recovered to 92.086. Spot gold rose 0.2% to $1,810.41 an ounce.

 

In Europe, FTSE fell 0.6%, DAX was falt while CAC rose 0.2%.

 

AT HOME

 

After rising nearly two third of a percent at the open and hitting fresh record highs, benchmark indices nosedived more than 2% from the top of the day to end with cuts of a percent and half, which is the biggest cut since 15th October. Sensex settled at 43828, down 695 points while Nifty lost 196 points to finish at 12858. BSE mid-cap and small-cap indices fell 1.8% and 1.1% respectively. All the BSE sectoral indices ended in red with Telecom and Realty indices leading the losses, down 2.2% each.

 

FIIs net bought stocks and stock futures worth Rs 24 cr and 1248 cr respectively but net sold index futures worth Rs 1803 cr. DIIs were net sellers to the tune of Rs 1840 cr.

 

Rupee appreciated 9 paise to end at 73.91/$.

 

SEBI has withdrawn a proposal to increase the margin requirement for non-futures and options (F&O) stocks in the cash market.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent while Hang Seng and Shanghai are marginally in the red. SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 13200 continued to be next upside target while immediate support on the hourly chart had moved up to 12910, with the stop-loss of which, trading longs should be held on to.

 

Nifty, after touching a high of 13145, nosedived to 12833 before closing at 12858. The benchmark is set to open near 12900 today.

 

12820 is where a trendline adjoining recent bottoms on the hourly chart is placed, making that the important immediate support. Upon breach of 12820, 12730, the bottom made last week, would be the next support to eye.

 

13145, the top made yesterday, would now act as immedite hurdle.