STAY LONG WITH THE STOP-LOSS OF 14490

 

STAY LONG WITH THE STOP-LOSS OF 14490

 

WORLD MARKETS

 

Nasdaq, helped by 3.7% climb in Apple, rose 0.6% while S & P 500 and Dow ended little changed.

 

Joe Biden signed a number of executive orders on his first day in office and is expected to start working on his proposed $1.9 trillion economic stimulus plan right away.

 

Weekly jobless claims totaled 900,000 for the week ended Jan. 16, lower than the estimate of 925,000. December Housing starts data also came in better than expected.

 

Shares of IBM fell more than 6% in the extended session after fourth-quarter revenue fell 6% on an annualized basis, the fourth consecutive quarter of declines.

 

Brent crude futures fell 3 cents to $56.05 a barrel while WTI crude futures settled 18 cents, or 0.3%, lower at $53.13 per barrel. U.S. crude oil inventories rose 2.6 million barrels last week, as against expectation  of a 1.2 million-barrel fall.

 

Among his first actions as president, Joe Biden announced America’s return to the Paris climate accord to combat climate change and revoked a permit for the Keystone XL oil pipeline project from Canada.

 

The dollar index fell 0.3% to 90.103. Spot gold fell 0.2% to $1,867.56 per ounce.

 

European markets fell 0.1%-1%. The European Central Bank kept interest rates unchanged but said it stands ready to act as coronavirus infection rates rise across the euro zone, leading to renewed lockdown measures.

 

AT HOME

 

After rising nearly seven tenth of a percent and hitting fresh record highs, benchmark indices nosedived more than a percent to end lower by a third of a percent. Sensex, after hitting a milestone of 50000 and touching a high of 50184, ended at 49624, down 167 points. Nifty settled at 14590, down 54 points. Nifty mid-cap and small-cap indices fell 1.2% and 0.6% respectively. BSE Telecom and Realty indices tumbled 2.6% each, becoming top losers among the sectoral indices while Consumer Durables and Energy indices were the top gainers, up 1.5% and 1.1% respectively.

 

FIIs net bought stocks and index futures worth Rs 1615 cr and 1102 cr respectively but net sold stock futures worth Rs 195 cr. DIIs were net sellers to the tune of Rs 1039 cr.

 

Rupee appreciated 4 paise to end at 72.99/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-0.5%. SGX Nifty is trading around 14620, suggesting around 20 points higher start for our market when compared to yesterday's close of Nifty future.

 

In yesterday's report we had said that 14900-15000 was the next major target as well as resistance zone to eye and had advised holding on to long positions with the stop-loss of 14490.

 

Nifty, after touching a high of 14753, plunged to 14517 before closing at 14590.

 

14900-15000, around which an upward sloping trendline adjoining tops made in 2010 and 2015 is placed, continues to be next major target as well as resistance zone to eye.

 

14490 continues to be immediate support, upon breach of which, 14222, the bottom made Monday, would be the crucial support to eye.

 

Meanwhile, trading longs can be held on to with the stop-loss of 14490.

 

Reliance Industries will report their quarterly earnings today.