14450, 14625 ARE THE UPSIDE LEVELS TO EYE; TRAIL STOP-LOSS TO 14180

 

14450, 14625 ARE THE UPSIDE LEVELS TO EYE; TRAIL STOP-LOSS TO 14180

 

WORLD MARKETS

 

Nasdaq and S & P 500 rose 1% and 0.6% respectively while Dow rose 0.2% on Friday on optimism that a Democratic-controlled U.S. government will lead to greater fiscal support.

 

The U.S. economy lost 140,000 jobs in December, as against the expectation of a gain of 50,000. It also marked the first job loss since April. The unemployment rate was 6.7%, compared to the 6.8% estimate.

 

Meanwhile, Trump admitted in his own words for the first time on Thursday that the Biden administration will take charge on Jan. 20, having challenged the outcome of the election since Nov. 3.

 

Brent crude climbed 94 cents, or 1.8%, to $55.35 a barrel, and WTI settled $1.41, or 2.8%, higher at $52.24 per barrel.

 

The yield on the benchmark 10-year Treasury note gained 5 bps to 1.124%, its highest level since March 30. The yield on the 30-year Treasury bond also rose 4 basis points to 1.893%, it's highest since March. Spot gold plunged 3.6% to $1,843.06 per ounce.

 

A laboratory study indicated that the Pfizer and BioNTech vaccine could be effective against the new, highly-transmissible mutations of the virus found in the U.K. and South Africa.

 

European markets gained 0.2%-0.6% with Germany’s DAX index notching a new record high. Eurozone unemployment unexpectedly declined in November, falling to 8.3% from 8.4% in October.

 

Earlier, mainland Chinese shares fell after the New York Stock Exchange’s announcement that it will delist the U.S.-listed stocks of those three Chinese telecommunication giants to comply with an executive order signed by President Trump last year.

 

For the week, the Dow and S&P 500 each gained more than 1%, while the Nasdaq advanced 2.4%.

 

AT HOME

 

Bulls were back to work after two-day rest as benchmark indices soared a percent and half to hit fresh record highs. Sensex settled at 48782, up 689 points while Nifty added 210 points to finish at 14347. Nifty mid-cap and small-cap indices rose 1% and 0.6% respectively. Except 0.9% and 0.5% lower Metal and Telecom indices respectively, all the BSE sectoral indices ended in green, with IT and Auto indices leading the tally, up 3.6% and 3.4% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 6030 cr, 1133 cr and 685 cr respectively. DIIs were net sellers to the tune of Rs 2373 cr.

 

Rupee appreciated 9 paise to end at 73.23/$.

 

For the week, Sensex and Nifty climbed 1.9% and 2.3%.

 

TCS started the earnings season with a bang as results beat estimates on all counts. Constant currency revenue growth stood at 4.1% while dollar revenue grew by 5.1%. Margins improved to 26.6% and were best in 5-years. The management also guided for a double digit growth next year.

 

OUTLOOK

 

Today, Nikkei is shut while Hang Seng and Shanghai are up 0.6% and 0.1% respectively. SGX Nifty is suggesting around 50 points higher start for our market.

 

In Friday's report we had said that 14300 continued to upside level to eye, upon crossover of which, 14400-14450 would be the next target zone.

 

Nifty touched a high of 14367 before closing at 14347. The benchmark is set to open near 14400 today.

 

14450 is the next upside target, upon crossover of which 14625 would be the next level to eye.

 

34-hour average, placed around 14180, would work as the immediate support, upon breach of which, 14100, where a trendline adjoining recent bottoms on the hourly chart is placed, would be the next support to eye.

 

Meanwhile, trading longs should be held on to with the stop-loss of 14180.