16600 BELOW 16782; 17400 CONTINUES TO BE IMMEDIATE HURDLE

 

16600 BELOW 16782; 17400 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 plunged 1.9% each while Nasdaq fell 1.6% over fears about the new Covid variant, omicron, and the Federal Reserve mulling a quicker-than-planned taper.

 

Moderna CEO said that he expects existing Covid vaccines to be less effective against the new strain.

 

In a testimony before the U.S. Senate Banking Committee, Fed Chair Jerome Powell said the Fed likely will discuss speeding up its taper of large-scale bond purchases at its next meeting.

 

US 10-year treasury yield dropped by 8.3 basis points to 1.446%. Spot Gold fell 0.7% to $1,773.21 per ounce.

 

Brent crude futures fell $2.87, or 3.9%, to $70.57 per barrel while WTI crude futures settled 5.4%, or $3.77, lower at $66.18 per barrel.

 

European markets fell 0.7%-1.8%.  Euro zone inflation surged to a record 4.9% annually in November, above consensus forecasts. France’s final third-quarter GDP growth was confirmed at 3% q-o-q, while inflation rose to an annual rate of 3.4% in November, its highest since September 2008.

 

For the month, Dow and S & P 500 fell 3.7% and 0.8% respectively while Nasdaq gained 0.25%.

 

AT HOME

 

After rising more than a percent and half in first hour and half, benchmark indices nosedived nearly 2% from the top of the day to end lower by about four tenth of a percent. Sensex settled at 57065, down 196 points while Nifty lost 70 points to finish at 16983. Nifty mid-cap and small-cap indices however gained 0.5% and 1.6% respectively. BSE Metal index tumbled 2.3%, becoming top loser among the sectoral indices, followed by 1% lower Energy index. Consumer durables index was the top gainer, up 2.3%, followed by 1% higher IT index.

 

FIIs net sold stocks worth Rs 5445 cr but net bought index futures and stock futures worth Rs 1589 cr and 3348 cr respectively. DIIs were net buyers to the tune of Rs 5350 cr.

 

Rupee depreciated 6 paise to end at 75.16/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 1.2% and 0.3% respectively while Shanghai is little changed. SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 17400 continued to be immediate hurdle while 16782, the low made Monday, was the immediate support, below which, 16600 would be the next downside level to eye.

 

Nifty, after touching a high of 17325, plunged to end at 16983.

 

16782, the low made Monday, continues to be immediate support, below which, 16600 would be the next downside level to eye.

 

17400 continues to be immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

35328, the low made Monday, is the immediate support for Banknifty, below which 35000-34800 would be the next support zone to eye; 37050 is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

Auto companies will report their November sales numbers today.