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.