NIFTY REBOUNDS FROM 18050 SUPPORT

 

NIFTY REBOUNDS FROM 18050 SUPPORT

 

WORLD MARKETS

 

Dow ended flat while S & P 500 and Nasdaq gained 0.3% and 0.6% respectively after digesting a slew of corporate earnings reports and strong jobs data. S & P 500 notched both a fresh intraday high and new record close and extended the winning streak to seventh straight day.

 

Initial jobless claims fell to a new pandemic low of 290,000 last week, down 6,000 from the previous week and lower than the expected 300,000 figure.

 

US 10-year treasury yield rose 4.3 bps to 1.678%. Dollar index inched up 0.2% to 93.76. Spot gold rose 0.1% to $1,783 per ounce.

 

Brent crude dipped 1.41%, or $1.21, to settle at $84.61 per barrel while WTI settled 92 cents, or 1.1%, lower at $82.50 per barrel on forecast of mild US winter.

 

Intel fell more than 8% after hours following a weaker-than-expected sales report. Social media stocks also dropped in extended trading after Snap said its advertising business declined due to Apple’s privacy changes.

 

shares of China's Evergrande Group in Hong Kong more than 12% after the debt-laden firm announced in an exchange filing that a deal to sell a 50.1% stake in its property services business to another developer Hopson had fallen through..

 

European markets fell 0.2%-0.4%.

 

AT HOME

 

After falling more than a percent, benchmark indices recouped more than half of the losses in last hour of trade to end lower by nearly half a percent, extending the losing streak to third straight day. Sensex settled at 60923, down 336 points while Nifty lost 88 points to finish at 18178. Nifty mid-cap and small-cap indices fell 0.4% and 0.8% respectively. BSE IT and Teck indices plunged 2.3% and 2.1% respectively, becoming top gainers among the sectoral indices while Bankex and Finance indices were the top gainers, up 1.7% and 1.1% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2819 cr, 1539 cr and 1938 cr respectively. DIIs were net buyers to the tune of Rs 428 cr.

 

Rupee appreciated 1 paise to end at 74.86/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.8% and 0.2% respectively while Shanghai is little changed. SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 18200 continued to be immediate support on the hourly chart, upon breach of which, 18000-18050 would be the next support zone.

 

Nifty broke 18200 support and plunged all the way to 18048 but rebounded from there to end at 18178.

 

18384, the top made yesterday, is the immediate hurdle, upon crossover of which, 18604, the top made Tuesday, would be the bigger resistance to eye.

 

18048, the bottom made yesterday, is the immediate support, upon breach of which, 34-DMA, placed around 17800, would be the important support to eye.

 

40700 is the upside target to eye for Banknifty; 39450 is immediate support.

 

Reliance Industries will report its quarterly earnings today.