NIFTY RETREATS FROM 12950-13000 RESISTANCE ZONE; 12700 CONTINUES TO BE IMMEDIATE SUPPORT

 

NIFTY RETREATS FROM 12950-13000 RESISTANCE ZONE; 12700 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices gained 0.2%-0.9% as tech shares rose and lawmakers agreed to resume negotiations over a potential new Covid-19 relief bill.

 

Data showed 742,000 Americans filed for unemployment benefits in the week of Nov. 14, topping estimate of 710,000.

 

Dow futures however are trading lower by 0.8% on worsening covid situation. The U.S. seven-day average of daily new Covid-19 infections now stands at 161,165, 26% higher than a week ago. Disagreement between the Treasury Department and the Federal Reserve over the continuation of funding for some of the emergency programs implemented during the recession, is also weighing on the sentiment.

 

Brent crude fell 0.32% to settle at $44.20 per barrel while WTI crude slipped 8 cents to settle at $41.74 per barrel.

 

European markets fell 0.4%-0.9%.

 

AT HOME

 

Benchmark indices tumbled 1.3% each, suffering the worst fall in 3-weeks and snapping four-day winning streak. Sensex settled at 43599, down 580 points while Nifty lost 166 points to finish at 12771. BSE mid-cap index fell 0.6% while small-cap index closed flat. BSE Bankex and Finance indices nosedived 2.8% and 2.3% respectively, becoming top losers among the sectoral indices while Power and Consumer Durables indices were the top gainers, up 0.8% each.

 

FIIs net bought stocks worth Rs 1181 cr but net sold index futures worth Rs 738 cr. DIIs were net sellers to the tune of Rs 2855 cr.

 

Rupee depreciated 6 paise to end at 74.26/$.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.3%, Shanghai is flat while Nikkei is down 0.6%. SGX Nifty is suggesting around 30 points higher start for our market.

 

For past couple of sessions, we have been mentioning that 12950-13000 is the resistance zone for Nifty. Yesterday, after touching a high of 12963, Nifty slipped to 12745 before closing at 12771.

 

12963, the top made yesterday, is the immediate hurdle, a crossover of which is required for a fresh upmove.

 

12700 continues to be immediate support, with the stop-loss of which, existing longs can be held on to.