13145 CONTINUES TO BE IMMEDIATE HURDLE; 12850 IMMEDIATE SUPPORT

 

13145 CONTINUES TO BE IMMEDIATE HURDLE; 12850 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

After opening with cuts of more than half a percent, Dow and S & P 500 saw a sustained upward move through the session to end higher by 0.2%. Nasdaq ended a tad lower. The rebound happened following latest developments surrounding a new round of U.S. fiscal stimulus negotiations.

 

House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer said in a joint statement that the bipartisan bill unveiled on Tuesday should be used as “basis for immediate bipartisan, bicameral negotiations.”

 

U.K. became the first country to grant emergency approval to the Covid-19 vaccine from Pfizer and BioNTech. U.S. regulators are expected to make determinations on that vaccine and a similar vaccine from Moderna later this month, possibly allowing distribution to begin before the start of 2021.

 

The House of Representatives unanimously passed a bill that would require Chinese companies to adhere to U.S. auditing standards if they want their stocks to be to be listed on US exchanges.

 

U.S. private payrolls rose by 307,000 in November, missing the estimated figure of 475,000.

 

Brent crude futures rose 94 cents, or 2%, to $48.36 a barrel while WTI crude settled 1.6%, or 73 cents, higher at $45.28 per barrel.

 

Dollar index touched a fresh two and a half year low at 90.99 before recovering to 91.11. Spot gold rose 0.7% to $1,827.63 per ounce.

 

In Europe, FTSE rose 1.2%, CAC was flat while DAX fell 0.5%. German retail sales rebounded in October while Italy’s unemployment rate climbed to 9.8% in October from an upwardly revised 9.7% in September.

 

AT HOME

 

It was a day of volatile consolidation as benchmark indices, after a flattish start, plunged a percent, only to recoup all the losses in late trade to end little changed. Sensex settled at 44618, down 37 points while Nifty added 4 points to finish at 13113. Nifty mid-cap index rose half a percent while small-cap index ended flat. NSE Realty and Metal indices surged 3% and 2.6% respectively, becoming top gainers among the sectoral indices while Bank and Financial Services indices fell 1.2% each, becoming top losers.

 

FIIs net bought stocks and stock futures worth Rs 357 cr and 462 cr respectively but net sold index futures worth Rs 1082 cr. DIIs were net sellers to the tune of Rs 1636 cr.

 

Rupee depreciated 12 paise to close at 73.80/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are trading with modest cuts while Hang Seng is up 0.4%. SGX Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 13145 continued to be immediate hurdle, while immediate support had moved up to 12850.

 

Nifty, after touching a low of 12983, rebounded to end at 13113.

 

13145 continues to be immediate hurdle, upon crossover of which, 13275 would be the immediate target. Once 13275 is taken out, 13500 would be the next major target.

 

12850, where a trendline adjoining recent bottoms on the hourly chart is placed, continues to be immediate support.