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.
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