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.