18200 IS THE IMMEDIATE SUPPORT; 18400-18450 RESISTANCE ZONE

 

18200 IS THE IMMEDIATE SUPPORT; 18400-18450 RESISTANCE ZONE

 

WORLD MARKETS

 

Dow and S & P 500 rose 0.4% each while Nasdaq ended marginally in the red. Dow hit an intraday record, surpassing its peak from mid-August.

 

US 10-year treasury yield rose 2 bps to 1.66%. Dollar index fell 0.2% to 93.60. December gold climbed by $14.40, or 0.8%, to settle at $1,784.90 an ounce.

 

Brent crude rose 74 cents, or 0.9%, to $85.82 a barrel while WTI settled 1.1% higher at $83.87 per barrel after data showed U.S. crude stocks fell by 431,000 barrels in the most recent week against expectations for an increase.

 

In Europe, CAC rose half a percent while FTSE and DAX inched up marginally.

 

AT HOME

 

Sensex and Nifty slipped 0.7% and 0.8% respectively, extending the weakness to second straight day. Sensex lost 456 points to settle at 61260 while Nifty finished at 18266, down 152 points. Nifty mid-cap and small-cap indices nosedived 2.2% and 2.4% respectively. Except 3% higher Telecom index, all the BSE sectoral indices ended in red, with Consumer Durables and Basic Materials indices leading the losses, down 3.4% and 2.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1843 cr, 298 cr and 2198 cr respectively. DIIs were net sellers to the tune of Rs 1681 cr.

 

Rupee appreciated 47 paise to end at 74.87/$.

 

OUTLOOK

 

Today morning, Nikkei is down 0.3% while Hang Seng and Shanghai are marginally higher. SGX Nifty is suggesting a modestly higher start for our market.

 

In yesterday's report we had said that 18604 was the immediate hurdle to eye while immediate support on the hourly chart had moved up to 18200, with the stop-loss of which, trading longs could be held on to.

 

Nifty plunged to 18209 before closing at 18266.

 

18200 continues to be immediate support on the hourly chart, upon breach of which, 18000-18050 would be the next support zone.

 

18400-18450 is the immediate resistance zone.

 

38900-38850 is the immediate support zone for Banknifty; 40000 is immediate hurdle, upon crossover of which, 40500-40700 would be the next target zone.

 

Asian Paints and JSW Steel will report their quarterly earnings today.