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.