14300 CONTINUES TO BE UPSIDE LEVEL TO EYE; 14000 CONTINUES TO BE IMMEDIATE SUPPORT

 

14300 CONTINUES TO BE UPSIDE LEVEL TO EYE; 14000 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Nasdaq surged 2.6% while S & P 500 and Dow rose 1.5% and 0.7% respectively to hit record closing highs, after Congress confirmed the election of Joe Biden as president.

 

Weekly claims totaled 787,000 for the week ended Jan. 2, less than the estimate of 815,000 and a slight decrease from the upwardly revised total of 790,000 for the previous week. Institute for Supply Management’s non-manufacturing activity index rose to 57.2 last month from 55.9 in November.

 

Minutes from the latest Fed meeting, released Wednesday, showed the central bank will give the public plenty of notice before cutting back on its bond-buying program.

 

Dollar index rose 0.53% to 89.785. US 10-year Treasury yield rose 4 basis points to 1.081%, its highest level since March 20. Spot gold fell 0.3% to $1,913.87 per ounce.

 

Brent as well as WTI crude rose 0.4% each to $54.52 and $50.86 per barrel respectively.

 

European markets rose 0.2%-0.7%. Euro zone economic sentiment improved in December, but inflation remained negative, coming in at -0.3% according to a flash estimate.

 

Meanwhile, Japan declared a state of emergency in Tokyo and three other areas in a bid to combat a rise in coronavirus infections.

 

AT HOME

 

After opening higher by nearly eight tenth of a percent, benchmark indices gave away also the gains through the session to end marginally in the red, extending the losing streak to second straight day. Sensex settled at 48093, down 80 points while Nifty lost 9 points to finish at 14137. Nifty mid-cap and small-cap indices however climbed 1.4% each, with the former extending the winning streak to seventh consecutive day while the later rising for the sixth day in last seven. BSE Metal and Telecom indices soared 3.7% and 3% respectively, becoming top gainers among the sectoral indices while FMCG and IT indices were the top losers, down 1.1% and 1% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 382 cr, 217 cr and 171 cr respectively. DIIs were net sellers to the tune of Rs 990 cr.

 

Rupee depreciated 22 paise to end at 73.32/$.

 

Government released first advance GDP estimates, which estimates GDP contraction of 7.7% in FY21 as compared to the growth rate of 4.2% in 2019-20.

 

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.5% and 0.3% respectively while Shanghai is down half a percent. SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 14300 continued to be upside level to eye and had advised holding on to long positions with the stop-loss of 14000.

 

Nifty, after touching a high of 14256 in the initial trade, slipped to end at 14137 and 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.

 

TCS will report its quarterly earnings after market hours today.