13773 IS IMMEDIATE HURDLE; TRAIL STOP-LOSS TO 13580

 

13773 IS IMMEDIATE HURDLE; TRAIL STOP-LOSS TO 13580

 

WORLD MARKETS

 

US indices fell 0.1%-0.4% respectively on Friday as lawmakers struggled to bridge differences on additional coronavirus stimulus measures.

 

Last-minute disputes preventing Congress from passing a relief deal include direct payments, small business loans and a boost to unemployment insurance. Later, on Friday night,  President Trump signed a two-day government funding bill into law while congressional leaders try to finalize a full-year funding and coronavirus relief package.

 

The House was supposed to meet again on Sunday at noon ET and will not vote earlier than 1 p.m. The Senate will return at 11 a.m. ET Saturday and will likely address nominations.

 

Brent as well as WTI crude gained 1.5% each to settle at $52.26 per barrel and $49.10 per barrel respectively.

 

U.S. dollar index rose 0.2% to trade at 90.001, rebounding from a more than two-year trough. Spot gold fell 0.1% to $1,883.39 per ounce.

 

European markets fell 0.2%-0.4% as British and European leaders struck a pessimistic tone about the prospect of a post-Brexit trade deal.  U.K. consumer confidence jumped to -26 in December from -33 in November, its sharpest climb in eight years. Germany’s closely watched Ifo business climate index came in at 92.1 to surpass expectations of 90.0.

 

Earlier, the Bank of Japan announced a six-month extension of its special program aimed at easing corporate financing pressures amid the coronavirus pandemic.

 

For the week, US indices gained 0.4%-3% with Nasdaq on the top. In Europe, FTSE was down 0.3% but CAC rose 0.4% and DAX surged 3.9%. Asian markets gained between 0.2%-1.9%.

 

WTI crude climbed 5.4% for its seventh straight up week. US dollar index fell 1.3% for its fourth negative week in five. Gold rose 2.5% for its third straight weekly gain.

 

AT HOME

 

After falling more than half a percent in the initial trade, benchmark indices saw a sustained recovery through the rest of the session to end higher by 0.15% each, extending the winning streak to sixth consecutive day. Sensex settled at 46960, up 70 points while Nifty added 20 points to finish at 13760. Nifty mid-cap and small-cap indices however fell 0.2% each. BSE IT and Teck indices climbed 1.7% and 1.3% respectively, becoming top gainers among the sectoral indices while Telecom index was the top loser, down 1.4%, followed by 0.7% lower Oil & Gas and Realty indices.

 

FIIs net bought stocks worth Rs 2721 cr but net sold index futures and stock futures worth Rs 196 cr and 392 cr respectively. DIIs were net sellers to the tune of Rs 2427 cr.

 

Rupee appreciated 4 paise to close at 73.55/$.

 

For the week, Sensex and Nifty gained 1.9% and 1.8% respectively, extending the winning streak to seventh consecutive week.

 

OUTLOOK

 

The U.S. Congress reached a $900 billion coronavirus relief package yesterday, following months of negotiations. Also, U.S. FDA approving Moderna’s Covid-19 vaccine for emergency use, making it the second vaccine approved in the U.S.

 

Meanwhile, British health secretary said yesterday that the government has imposed a strict Christmas lockdown in London and southeast England because a new strain of coronaviurs was "out of control".

 

Today morning, Asian markets are trading with cuts of 0.1%-0.8% and SGX Nifty is suggesting around 40 points lower start for our market.

 

In Friday's report we had said that 13773, the top made Thursday, was the immediate hurdle and had advised holding on to long positions with the stop-loss of 13530.

 

Nifty, after touching a low of 13658, rebounded to touch a high of 13773 before closing at 13760.

 

13773, the top made on Thursday as well as Friday, is the immediate hurdle to eye, upon crossover of which, 13900 would be the next upside level to watch.

 

On the way down, trendline adjoining recent bottoms on the hourly chart lands support around 13580, with the stop-loss of which, long positions can be held on to.