16600 BELOW 16782; 17400 CONTINUES TO BE IMMEDIATE HURDLE

 

16600 BELOW 16782; 17400 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices gained 0.7%-1.9% with Nasdaq on the top, as concerns over the newly discovered omicron Covid variant appeared to ease.

 

Covid symptoms linked to the omicron variant have been described as “extremely mild” by the South African doctor who first raised the alarm over the new strain. Still, the WHO said it will take weeks to understand how the variant may affect diagnostics, therapeutics and vaccines.

 

US President Biden said economic lockdowns are currently off the table and there will be no new travel restrictions. Fed Chair Powell believes that the omicron variant poses a threat to the central bank’s mandate to achieve stable prices and maximum employment, he said in remarks he plans to deliver to Senate lawmakers on Tuesday.

 

US 10-year treasury yield rose by 2 basis points to 1.50%. Dollar index rose 0.1% to 96.357. Spot gold fell 0.4% to $1,784.41 per ounce.

 

WTI crude gained $1.80, or 2.6%, to settle at $69.95 per barrel and Brent crude settled 1% higher at $73.44 per barrel.

 

European markets gained 0.2%-0.9%. Euro zone business climate and economic sentiment index for November fell to 117.5 points from 118.6 in October, while inflation expectations pulled back slightly too.

 

AT HOME

 

After falling nearly a percent and half in the initial trade, Snesex and Nifty recouped all the losses and rose some more to end higher by 0.3% and 0.2% respectively. Sensex settled at 57260, up 153 points while Nifty added 27 points to finish at 17054. Nifty mid-cap and small-cap indices however ended with deep cuts of 1.4% and 2.6% respectively. BSE Utilities index plunged 2.6%, becoming top loser among the sectoral indices, followed by 2% lower Realty and Power indices. Teck and IT indices were the top gainers, up two third of a percent each.

 

FIIs net sold stocks worth Rs 3332 cr but net bought index futures and stock futures worth Rs 2152 cr and 1342 cr respectively. DIIs were net buyers to the tune of Rs 4611 cr.

 

Rupee depreciated 23 paise to end at 75.10/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 1.2% and 0.5% respectively while Hang Seng is down 0.4%. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 16800-16850 was the next support zone and had advised holding on to short positions with the stop-loss of 17400.

 

Nifty plunged all the way to 16782, achieving the above mentioned target and rebounded from there to end at 17053.

 

17400 contiues to be immediate hurdle.

 

16782, the low made yesterday, is the immediate support, below which, 16600 would be the next downside level to eye.

 

35328, the low made yesterday, is the immediate support for Banknifty, below which 35000 would be the next downside level to eye; 37050 is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

STAY SHORT WITH THE STOP-LOSS OF 17400

 STAY SHORT WITH THE STOP-LOSS OF 17400

 

WORLD MARKETS

 

US indices nosedived 2.2%-2.5% as the World Health Organization labeled the omicron Covid strain a “variant of concern.” The Dow posted its worst day since October 2020

 

The variant was first reported to the WHO from South Africa and has been found in the U.K., Israel, Belgium, the Netherlands, Germany, Italy, Australia and Hong Kong, but not yet in the U.S. Many countries, including the U.S., moved to restrict travel from southern Africa.

 

US 10-year treasury yield dropped by more than 15 bps to 1.485%. Dollar index fell 0.74% to 96.07. Gold, after spiking to $1815, eased to end 0.2% higher at $1791 per ounce.

 

U.S. oil settled 13.1%, or $10.24, lower at $68.15 per barrel for its worst day since April 2020.  Brent crude futures slid 11.6% to settle at $72.72 per barrel.

 

European markets tumbled 3.6%-4.8%

 

For the week, US indices fell 2%-3.5% with Nasdaq leading the losses. Brent and WTI fell nearly 7% and 10% respectively for their fifth straight week of losses.

 

AT HOME

 

Benchmark indices nosedived 3%, suffering the worst fall since 12th April and closing at the lowest level since 30 august 2021. Sensex settled at 57107, down 1688 points while Nifty lost 510 points to finish at 17026. Nifty mid-cap and small-cap indices plunged 3.2% and 2.9% respectively. Except 1.2% higher Healthcare index, all the BSE sectoral indices ended in red, with Realty and Metal indices leading the losses, down 6.4% and 5.4% respectively.

 

FIIs net sold stocks and index futures worth Rs 5786 cr and 3271 cr respectively but net bought stock futures worth Rs 530 cr. DIIs were net buyers to the tune of Rs 2294 cr.

 

Rupee depreciated 36 paise to end at 74.87/$.

 

For the week, Sensex and Nifty tumbled 4.2% each, which is the worst weekly cut in 10 months.

 

OUTLOOK

 

Today morning, Shanghai and Nikkei are down 0.5% and 0.3% respectively while Hang Seng is marginally higher. SGX Nifty is suggesting around 30 points higher start for our market.

 

In Friday's report we had said that 17216, the low made Tuesday, continued to be important immediate support and had advised holding on to short positions with the stop-loss of 17850.

 

Nifty broke 17216 and plunged all the way to 16985 before closing at 17026.

 

16800-16850 is the next support zone, below which, 16600, which is the target of bearish Head & Shoulder formation breakdown, would be the next level to eye. 17400 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 200-DMA, placed around 35700, is the important immediate support to eye. If this 

17216 CONTINUES TO BE IMMEDIATE SUPPORT; 17850 IMMEDIATE HURDLE

 

17216 CONTINUES TO BE IMMEDIATE SUPPORT; 17850 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US markets were shut yesterday for the Thanksgiving holiday.

 

European markets gained 0.2%-0.4% as they continue to monitor political developments and the Covid crisis. In Germany, a new coalition government deal between the Social Democrats, Greens and Free Democrats was announced on Wednesday. On covid front, Italy announced Wednesday evening that it will introduce tighter Covid measures and Germany has narrowly avoided another lockdown with the incoming coalition reportedly wanting to wait and see if tighter Covid passport rules help to alleviate rising cases there.

 

On the data front, Germany’s third-quarter GDP grew by 1.7% quarter-on-quarter, marginally below expectations. Germany’s GfK consumer sentiment index fell to -1.6 points from a revised 1.0 in November.

 

US 10-year treasury yield fell 5 bps to 1.5927%. Dollar index was little changed at 96.789. Spot gold rose 0.2% to $1,792.05 per ounce.

 

WTI crude futures fell 9 cents, or 0.1%, to $78.30 a barrel and Brent futures eased 5 cents to $82.20 a barrel.

 

World Health Organization said it is monitoring a new Covid variant with “a large number of mutations.” A special meeting is scheduled today to discuss its implications for vaccines and treatments.

 

AT HOME

 

After falling a third of a percent in the intial trade, benchmark indices surged a percent to end higher by nearly three fourh of a percent. Sensex settled at 58795, up 454 points while Nifty added 121 points to finish at 15536. Nifty mid-cap and small-cap indices gained 0.6% and 0.8% respectively. BSE Energy index soared 4.5%, becoming top gainer among the sectoral indices, followed by 1.9% higher Realty index. Capital Goods and Auto indices were the top losers, down 0.5% and 0.4% respectively.

 

FIIs net sold stocks worth Rs 2301 cr but net bought index futures and stock futures worth Rs 598 cr and 1482 cr respectively. DIIs were net buyers to the tune of Rs 1368 cr,

 

Rupee depreciated 11 paise to end at 74.51/$.

 

For the November derivative series, Nifty fell 1.8%.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-2.2% with Nikkei leding the losses and SGX Nifty is suggesting around 120 points lower start for our market.

 

In yesterday's report we had said that 17216, the low made Tuesday, which also coincided with 20-week moving average, continued to be important immediate support while 17850 continues to be immediate hurdle, with the stop-loss of which, positional shorts can be held on to.

 

Nifty touched a high of 17564 before closing at 17536 but is set to open below 17450 today.

 

17216, the low made Tuesday, which also coincided with 20-week moving average, continues to be important immediate support to eye; 17850 continues to be immediate hurdle, with the stop-loss of which, positional shorts can be held on to.

 

36647, the low made Tuesday, is the immediate support for Banknifty, below which, 34-week moving average, placed around 35850, would be the next downside level to eye; 38050 is the immediate hurdle.

17216 CONTINUES TO BE IMMEDIATE SUPPORT; 17850 IMMEDIATE HURDLE

 

17216 CONTINUES TO BE IMMEDIATE SUPPORT; 17850 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow ended little changed while S & P 500 and Nasdaq gained 0.2% and 0.4% as bond yields took a breather, allowing tech stocks to recover.

 

The meetings from the latest Fed meeting showed that the central bankers were ready to accelerate the timetable for slowing asset purchases and raising the benchmark funds rate if inflation remains high.

 

Weekly jobless claims came in at 199,000, the lowest level in more than 50 years. GDP growth for the third quarter was revised up slightly to 2.1%, though economists expected it to rise to 2.2%. Personal income and consumer spending both rose more than expected in October. However durable goods orders showed an unexpected decline in October. Core personal consumption expenditures, the Fed’s preferred inflation measure, was up 4.1% y-o-y for October, matching estimates.

 

US 10-year treasury yield eased 2.7 bps to 1.638%. Dollar index rose 0.4% to 96.84. Gold ended little changed at $1788 per ounce.

 

Brent crude declined 6 cents to settle at $82.25 per barrel, while WTI crude settled 11 cents lower at $78.39 per barrel.

 

In Europe, FTSE rose 0.3%, CAC was flat while DAX fell 0.4%. Eurozone IHS Markit flash composite PMI climbed to 55.8 in November from 54.2 in October, outstripping expectations for a drop to 53.2. Germany’s Ifo business climate index fell in November, dropping to 96.5 from October’s 97.7. Meanwhile, Germany is considering stricter measures amid a surge in covid cases there, and France recorded more than 30,000 new daily infections on Tuesday for the first time since August.

 

AT HOME

 

After rising half a percent, benchmark indices tumbled a percent from the top in late noon trade to end lower by half a percent. Sensex settled at 58340, down 323 points while Nifty lost 88 points to finish at 17415. Nifty mid-cap index fell 0.4% while small-cap index rose 0.6%. BSE IT and Auto indices slipped 1.2% each, becoming top losers among the sectoral indices while Oil & Gas index was the top gainer, up 0.8%, followed by half a percent higher Bankex and Utilities indices.

 

FIIs net sold stocks and index futures worth Rs 5123 cr and 167 cr respectively but net bought stock futures worth Rs 1028 cr. DIIs were net buyers to the tune of Rs 3810 cr.

 

Rupee appreciated 3 paise to end at 74.39/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.6% while Hang Seng and Shanghai are off 0.4% and 0.2% respectively. SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 17216, the low made Tuesday, coincided with 20-week moving average and hence was the important immediate support to eye. We had also said that 17850 was the immediate hurdle on the hourly chart, with the stop-loss of which, positional shorts can be held on to.

 

Nifty, after touching a high of 17600, plunged to end at 17415.

 

17216, the low made Tuesday, which also coincided with 20-week moving average, continues to be important immediate support to eye.

 

17850 continues to be immediate hurdle, with the stop-loss of which, positional shorts can be held on to.

 

36647, the low made Tuesday, is the immediate support for Banknifty, below which, 34-week moving average, placed around 35850, would be the next downside level to eye; 38050 is the immediate hurdle.

 

U.S. markets will remain closed today for Thanksgiving.

NIFTY REBOUNDS FROM 20-WEEK MOVING AVERAGE

 

NIFTY REBOUNDS FROM 20-WEEK MOVING AVERAGE

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.6% and 0.2% respectively as energy and financial stocks rose while Nasdaq fell half a percent as tech shares sold off for the second day in a row.

 

Markit’s November flash PMI showed a decline month-over-month as the services segment came in lower than expected.

 

US 10-year treasury yield rose 5.4 bps to 1.679%. The dollar index was little changed at 96.461. Spot gold fell 0.9% to $1,788.51 per ounce.

 

WTI crude rose 2.5% to $78.67 per barrel while Brent crude stood at $82.31 per barrel, for a gain of 3.2%.

 

In Europe, FTSE inched up 0.2% but DAX and CAC tumbled 1.1% and 0.8% respectively.

 

AT HOME

 

After falling nearly a percent in the initial trade, Sensex and Nifty surged more than a percent and half from the bottom of the day to end higher by 0.3% and 0.5% respectively, snapping 4-day losing streak. Sensex settled at 58664, up 198 points while Nifty added 86 points to finish at 17503. Nifty mid-cap and small-cap indices climbed 1.8% and 1.9% respectively. Except 0.2% lower IT index, all the BSE sectoral indices ended in green, with Metal and Power indices leading the gains, up 3.5% and 3.2% respectively.

 

FIIs net sold stocks worth Rs 4477 cr but net bought index futures and stock futures worth Rs 297 cr and 3269 cr respectively. DIIs were net buyers to the tune of Rs 1412 cr.

 

Rupee depreciated 2 paise to end at 74.42/$.

 

OUTLOOK

 

Today morning, Nikkei is down 0.8%, Shanghai is flat while Hang Seng is up 0.2%. SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 17280, the low made Monday, was the immediate support, below which, 20-week moving average, placed around 17200, would be the next important support to eye.

 

Nifty broke 17280 and plunged all the way to 17216, but saw a smart rebound from there to end at 17503. The benchmark is set to open above 17550 today.

 

17216, the low made yesterday, coincided with 20-week moving average and hence is the important immediate support to eye.

 

17850 is the immediate hurdle on the hourly chart, with the stop-loss of which, positional shorts can be held on to.

 

36647, the low made yesterday, is immediate support for Banknifty, below which, 34-week moving average, placed around 35850, would be the next downside level to eye; 38150 is immediate hurdle.

 

17200 BELOW 17280; 17900 IS IMMEDIATE HURDLE

 

17200 BELOW 17280; 17900 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow ended flat but S & P 500 and Nasdaq fell 0.3% and 1.3% respectively as bond yields jumped following renomination of Powell, driving expectations that the central bank may stay the course on tapering economic support.

 

US President Biden announced Powell as his pick for the central bank chief nomination in a closely-watched decision. He named Fed Governor Lael Brainard, seen as the main competition for the top job, as vice chair.

 

Existing Home sales improved month-over-month but were well below the level from the same month last year.

 

US 10-year treasury yield climbed by 9.3 basis points to 1.629%. Dollar index rose 0.27% to 96.29, the highest since July 2020. Spot gold slipped 2.1% to $1,805.30 per ounce, its lowest since Nov. 5.

 

Brent crude rose 83 cents, or 1%, to $79.70 a barrel while U.S. crude gained 80 cents, or 1%, to $76.73.

 

In Europe, FTSE gained 0.4% but DAX and CAC eased 0.3% and 0.1% respectively

 

AT HOME

 

Benchmark indices plunged 2% each, extending the losing streak to fourth consecutive session and closing at the lowest level in 2-months. Sensex settled at 58465, down 1170 points while Nifty lost 348 points to finish at 17416. Nifty mid-cap and small-cap indices nosedived 3% and 2.7% respectively. Except 2.9% and 0.1% higher Telecom and Metal indices respectively, all the BSE sectoral indices ended in red, with Realty and Energy indices leading the losses, down 4.4% and 4% respectively.

 

FIIs net sold stocks worth Rs 3439 cr but net bought index futures and stock futures worth Rs 134 cr and 1456 cr respectively. DIIs were net buyers to the tune of Rs 2051 cr.

 

Rupee depreciated 16 paise to end at 74.40/$.

 

OUTLOOK

 

Nikkei is shut today while Hang Send is down a percent but Shanghai is up 0.3%. SGX Nifty is suggesting around 60 points lower start for our market.

 

In yesterday's report we had said that below 17688, 17613 and 17452, the bottoms made on 29th October and 1st October respectively, would be the next downside levels to eye and had advised holding on to short positions with the stop-loss of 18000.

 

Nifty plunged all the way to 17280 before closing at 17416.

 

17280, the low made yesterday, also coincides with a trendline adjoining bottoms made in April and July and hence is the immediate support to eye. Below 17280, 20-week moving average, placed around 17200, would be the next important support to eye; 17900 is immediate hurdle.

 

For Banknifty, 36655, the low made yesterday, is the immediate support, below which, 35800, where 34-week moving average is placed, would be the next important level to eye; 38150 is immediate hurdle.

 

17688 IS IMMEDIATE SUPPORT; 18000 IMMEDIATE HURDLE

 

17688 IS IMMEDIATE SUPPORT; 18000 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.8% and 0.1% on Friday as stocks related to reopening of economy dropped on concerns over a resurgence of Covid-19 while Nasdaq gained 0.4% as tech shares pushed higher.

 

Austria announced it would re-enter a full national lockdown due to a spike in Covid cases. That followed new restrictions for unvaccinated people in Germany, introduced Thursday as a fourth wave sent daily cases to a record high.

 

The House of Representatives passed President Biden’s $1.7 trillion social safety net bill, sending it to the Senate.

 

US 10-year Treasury yield fell 4.8 bps to 1.539%. Dollar index climbed 0.489% to 96.029, close to the 16-month high of 96.266 hit on Wednesday. Spot gold fell 0.6% to $1,848.05 per ounce.

 

Brent futures for January fell $2.35 or 2.9% to $78.89 a barrel while WTI crude dipped $2.91 or 3.8% to $75.44 per barrel.

 

FTSE, DAX and CAC fell 0.4% each. ECB President Lagarde reinforced her view that euro zone inflation will fade, and said the ECB should not look to tighten monetary policy as it could hamper the bloc’s recovery. U.K. retail sales increased 0.8% month-on-month in October, slightly exceeding the 0.5% expectation. Excluding fuel, sales grew by 1.6% on the month against a 0.6% forecast.

 

For the week, Dow fell 1.3% but S & P 500 and Nasdaq gained 0.3% and 1.2% respectively. In Europe, FTSE plunged 1.7% while CAC and DAX gained 0.3% each. In Asia, Shanghai Composite and Nikkei gained 0.6% and 0.5% respectively, while Hang Seng and Nifty fell 1.1% and Nifty 1.9% respectively. Oil fell for 4th straight week as surging COVID-19 cases in Europe threatened to slow the economic recovery while markets also weighed a potential release of crude reserves by major economies to cool prices.

 

AT HOME

 

Benchmark indices tumbled nearly three fourth of a percent, extending the losing streak to third straight day and closing at 3-wek low. Sensex settled at 59575, down 433 points while Nifty lost 133 points to finish at 17764. Nifty mid-cap and small-cap indices nosedived 1.4% and 1.6% respectively. All the BSE sectoral indices ended in red with Metal and Auto indices leading the losses, down 2.8% and 2.3% respectively.

 

FIIs net sold stocks and index futures worth Rs 3931 cr and 180 cr respectively but net bought stock futures worth Rs 81 cr. DIIs were net buyers to the tune of Rs 1886 cr.

 

Rupee appreciated 3 paise to end at 74.24/$.

 

For the week, Sensex and Nifty fell 1.8% and 1.9% respectively, snapping 2-week winning streak.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 0.3% and 0.1% respectively while Shanghai is up half a percent. SGX Nifty is trading around 17780, suggesting a flattish start when compared to Thursday's close of Nifty futures.

 

In Thursday's report we had said that 17800-17750 was the next support zone to eye.

 

Nifty plunged to 17688 before closing at 17764 and is set to open near 17700 today.

 

17688, the low made on Thursday, also coincided with a rising trendline adjoining bottoms made in September and hence is the immediate support to eye. Below 17688, 17613 and 17452, the bottoms made on 29th October and 1st October respectively, would be the next downside levels to eye.

 

18000, which roughly coincides with 20 as well as 34-DMA, is the immediate hurdle on the way up, upon crossover of which, 18210, the top made during the week, would be the next upside level to eye.

 

Meanwhile, trading shorts can be held on to with the stop-loss of 18000.

 

For Banknifty, 37500, around which a trendline adjoining July and August is placed, is the next support to eye. Below 37500, 36700 would be the next downside level to eye. 38450-38500 is the immediate resistance zone, above which, 39117, the top made during the week, would be the next upside level to eye.

 

17800-17750 IS NEXT SUPPORT ZONE; 18023 IMMEDIATE HURDLE

 

17800-17750 IS NEXT SUPPORT ZONE; 18023 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow slipped 0.6% while S & P 500 and Nasdaq eased 0.3% each.

 

Housing Starts in October fell 0.7% to 1.52 million units, short of expectations. Permits rose 4% to 1.65 million, topping estimates. November Housing Market index rose more than expected to its highest point since last May.

 

US 10-year treasury yield fell 4 basis points to 1.591%. Dollar index drifted 0.034% lower to 95.91 after earlier touching 96.266, its highest in 16 months. Spot gold rose 0.9% to $1,866.83 per ounce.

 

Brent crude futures fell 2.6% to $80.28 a barrel while WTI crude futures settled 3% lower at $78.36 amid growing concerns about oversupply and a recovery in demand.

 

In Europe, FTSE fell half a percent while DAX and CAC ended marginally in the green. The U.K.’s October CPI rose by 4.2%, up from 3.1% in September and hitting a 10-year high. Euro zone inflation was confirmed at 4.1% y-o-y in October, more than double the European Central Bank’s target.

 

AT HOME

 

Sensex and Nifty tumbled 0.5% and 0.6% respectively, extending the losing streak to second straight day. Sensex settled at 60008, down 314 points while Nifty lost 100 points to finish at 17898.  Nifty mid-cap index fell 0.7% while small-cap index inched up 0.1%. BSE Realty and Energy indices tumbled 1.8% each, becoming top losers among the sectoral indices while Power and Auto indices were top gainers, up 0.6% each.

 

FIIs net sold stocks and stock futures worth Rs 344 cr and 121 cr respectively but net bought index futures worth Rs 112 cr. DIIs were net sellers to the tune of Rs 61 cr.

 

Rupee appreciated 10 paise to end at 74.27/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-1.3% and SGX Nifty is suggesting around 25 points lower start for our market.

 

In yesterday's report we had said that 17900 continued to be immediate support on the hourly chart, below which, 17798, the bottom made last week, would be the net downside level to eye.

 

Nifty plunged to 17879 before closing at 17887.

 

17800-17750 is the next support zone to eye; 18023, the top made yesterday, is immediate hurdle

 

37600, 36900 are supports for Banknifty; 38500 is immediate hurdle.