16600 BELOW 16782; 17400 CONTINUES TO BE IMMEDIATE HURDLE

 

16600 BELOW 16782; 17400 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

After rising more than a percent and half in the initial trade, US indices plunged to end with deep cuts of 1.2%-1.8% as the Centers for Disease Control and Prevention confirmed the first case of omicron in the U.S.

 

On the data front, ADP’s private payroll data for November showed addition of 534,000 jobs, above expectations of 506,000. IHS Markit manufacturing PMI for November came in at 58.3, lower than expected. October construction spending also rose slower than expected, but there was a positive historical revision to help offset the miss.

 

US 10-year treasury yield fell nearly 3 bps to 1.407%. Dollar index inched up 0.1% to  96.02. Spot gold was up 0.4% to $1,780.05 per ounce.

 

After rising more than 3%, oil prices reversed to end lower. Brent crude futures slid 0.2% to $69.08 per barrel while WTI crude futures fell 0.4% to $65.90 per barrel.

 

European markets rose 1.5%-2.5%. November’s final manufacturing PMI for the euro zone came in at 58.4, a slight improvement on October’s 58.3 but short of an initial 58.6 flash estimate.

 

AT HOME

 

Benchmark indices ended higher by 1.1% each after a range bound but choppy session. Sensex settled at 57684, up 620 points while Nifty added 183 points to finish at 17167. Nifty mid-cap and small-cap indices gained 1% and 0.1% respectively.  BSE Metal and Energy indices climbed 2.4% and 2% respectively, becoming top gainers among the sectoral indices, while Healthcare index slipped 1.4%, becoming the top loser, followed by 0.5% lower Consumer Durables index.

 

FIIs net sold stocks worth Rs 2766 cr but net bought index futures and stock futures worth Rs 930 cr and 1926 cr respectively. DIIs were net buyers to the tune of Rs 3467 cr.

 

Rupee appreciated 25 paise to end at 74.91/$.

 

India's November manufacturing PMI improved to ten month high of 57.6 from 55.9 in October.

 

GST collection for November stood at Rs 1.31 lk cr, which is the 2nd highest figure since implementation of GST.

 

India posted a record trade deficit of $23.27 bn in November as imports surged 57% to $53.15 bn while exports rose 26.5% to $29.88 bn.

 

Hero MotoCopr sales plunged 40% to 3.19 lk units. Royal Enefield sales were 19% lower at 51654 units. Maruti total sales fell 9.2% y-o-y to 1.39 lk units. Bajaj Auto sales fell 10% to 3.79 lk units. M & M auto sales dipped 6.2% to 40102 units while tractor sales fell 15% to 27681 units. Tata Motors sold 62192 units, a growth of 25%. Eicher Motors CV sales rose 3.1% to 3184 units. Ashok Leyland sales fell 2% to 10480 units. Escorts total sales were down 30% at 7116 units. TVS Motor sales fell 17.2% to 2.72 lk units.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.5% and 0.1% respectively while Nikkei is down 0.6%. SGX Nifty is suggesting around 80 points lower start for our market.

 

In yesterday's report we had said that 16782, the low made Monday, continued to be immediate support while 17400 continues to be immediate hurdle.

 

Nifty surged to 17213 before closing at 17167. The benchmark is set to open below 17100 today.

 

17400 continues to be immediate hurdle for Nifty; 16782, the low made Monday, continues to be immediate support.

 

37050 continues to be immediate hurdle for Banknifty; 35328, the low made Monday, continues to be immediate support.