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.