16782 IS THE NEXT SUPPORT; TRAIL STOP-LOSS TO 17250

 

16782 IS THE NEXT SUPPORT; TRAIL STOP-LOSS TO 17250

 

WORLD MARKETS

 

Dow and S & P 500 fell 1.5% and 1% respectively while Nasaq eased 0.1% on Friday amid worries about tighter monetary policy and the ongoing pandemic.

 

US 10-year treasury yield fell 1.5 bps to 1.409%. Dollar index climbed 0.7% to 96.67. Gold, after hitting a high of $1814, gave away all the gains to end flat at $1798 per ounce.

 

Brent crude settled 2% lower at $73.52 per barrel, while WTI crude futures dropped 2.1% to settle at $70.86 a barrel.

 

In Europe, except 0.1% higher FTSE, other markets fell between 0.6%-1.1%. U.K. employment data remained strong in November, with 257,000 staff added to payroll. U.K. Consumer Price Index rose by 5.1% y-o-y, up from 4.2% in October, the steepest incline for a decade and more than double the Bank of England’s target.

 

Data from China showed industrial output for November rose 3.8% year-on-year, more than the 3.5% increase in October, and better than the 3.6% expected. Retail sales in November rose 3.9% year-on-year, less than October’s 4.9% increase, and below the expectations of 4.6%.

 

For the week, Nasdaq plunged 3%, while the Dow and the S&P 500 slipped 1.7% and 1.9%, respectively. European markets fell 0.3%-0.9%. In Asia, Nifty and Hang Seng fell 3% each, Shanghai eased half a percent but Nikkei gained 1.3%. Brent and WTI oil fell 3% and 2.3% respectively. Gold rose 0.9% to $1798 per ounce, snapping 4-week losing streak.

 

The World Health Organization (WHO) said on Saturday that the Omicron strain has been found through testing in 43 out of 50 U.S. states and around 90 countries, and the number of cases is doubling in 1.5 to 3 days in areas with community transmission.

 

AT HOME

 

Benchmark indices nosedived 1.5% each, suffering the second worst fall of the month and also registering the second worst close of the month after that of 6th December. Sensex settled at 57011, down 889 points while Nifty lost 263 points to finish at 16985. Nifty mid-cap and small-cap indices plunged 2.4% and 2.5% respectively, suffering the worst fall after 26th and 29th November respectively. Except 1.3% and 0.8% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red, with Realty index being the top loser, down 3.8%, followed by 2.6% each lower Energy and Finance indices.

 

FIIs net sold stocks and index futures worth Rs 2070 cr and 471 cr respectively but net bought stock futures worth Rs 5 cr. DIIs were net buyers to the tune of Rs 1479 cr.

 

Rupee appreciated 1 paise to end at 76.08/$.

 

For the week, Sensex and Nifty fell 3% each to register the lowest weekly close after the week ended 27th August, 2021.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-0.9% and SGX Nifty is suggesting around 75 points lower start for our market.

 

In Friday's report we had said that 17050, around which a trendline adjoining recent bottoms was placed, continued to be next support to eye and that 17430 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts could be held on to.

 

Nifty plunged to 16966 before closing at 16985 and is set to open near 16900 today.

 

16782, the low made in November, is the next support to eye; Immediate resistance on the hourly chart has moved lower to 17250, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 35328, the bottom made in November, is the immediate support to eye, upon breach of which, 34800, where a trendline adjoining bottoms made in June and July is placed, would be the next support to eye; 36550 is the immediate hurdle on the hourly chart.