14000 CONTINUES TO BE IMMEDIATE SUPPORT; 14300 NEXT TARGET

 

14000 CONTINUES TO BE IMMEDIATE SUPPORT; 14300 NEXT TARGET

 

WORLD MARKETS

 

Dow climbed 1.4% and S & P 500 rose 0.6% but Nasdaq fell 0.6% yesterday as Georgia’s Senate runoff election results rolled in. The upmove came on hopes that a Democrat-held Senate would push for a more robust stimulus package.

 

Democrats were projected to win both the Senate seats, which will create a 50-50 Senate that Democrats will control, due to the tiebreaking vote in Vice President-elect Kamala Harris. .

 

Pro-Trump rioters stormed the Capitol when lawmakers had just started the procedural process of counting the Electoral College votes and formally declaring President-elect Joe Biden the winner. Wednesday evening, the Capitol building was secured and Congress reconvened to continue the process to confirm Biden’s win. Senate Majority Leader Mitch McConnell said the Senate will certify the winner of the 2020 election Wednesday night.

 

Brent crude gained 32 cents to $53.92 per barrel while WTI crude futures settled 70 cents, or 1.4%, higher at $50.63 per barrel.

 

Spot gold tumbled 2.2% to $1,907.21 per ounce as the 10-year U.S. Treasury yield rose above 1% for the first time since March,

 

European markets surged 1.2%-3.5% with FTSE on the top. Eurozone final composite PMI for December came in at 49.1, up from November’s 45.3 but significantly below an earlier flash estimate of 49.8. Germany on Tuesday extending its own lockdown until Jan. 31 after England entered a third national lockdown.

 

Meanwhile, concerns are growing over a new strain of the virus found in South Africa; former FDA chief Dr. Scott Gottlieb warned that the new variant appears to inhibit antibody drugs. 

 

AT HOME

 

Sensex and Nifty fell 0.5% and 0.4% respectively, snapping 3-day winning streak. Sesnex settled at 48174, down 263 points while Nifty lost 53 points to finish at 14146. Nifty mid-cap index rose 0.6% while small-cap index ended marginally in the red. BSE Metal and Power indices were the top gainers among the sectoral indices, rising 2.2% and 1.5% respectively, while Energy and FMCG indices were the top losers, down 2% and 1.2% respectively.

 

FIIs net sold stocks and index futures worth Rs 484 cr and 295 cr respectively but net bought stock futures worth Rs 97 cr. DIIs were net sellers to the tune of Rs 380 cr.

 

Rupee appreciated 7 paise to end at 73.10/$.

 

India's IHS Markit Services PMI eased to 52.3 in December from 53.7 in November. The composite PMI fell to 54.9 from 56.3.

 

OUTLOOK

 

Today morning, Nikkei is trading with gains of 2% while Shanghai and Hang Seng are up 0.3% and 0.1% respectively.  SGX Nifty is suggesting around 70 points higher start for our market. 

 

In yesterday's report we had said that 14300 continued to be next upside target and had advised trailing stop-loss in long positions to 14000.

 

Nifty, after touching a high of 14244 in the initial trade, plunged to 14039 and rebounded from there to end at 14146. The benchmark is set to open near 14200 today.

 

14300 continues to upside level to eye, upon crossover of which, 14400-14450 would be the next target zone.

 

14000 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.