17160 IS IMMEDIATE SUPPORT; 17490 IMMEDIATE HURDLE

 

17160 IS IMMEDIATE SUPPORT; 17490 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow fell 0.2%, while S & P 500 and Nasdaq tumbled 0.8% and 1.9% respectively on the back of a disappointing November jobs report and uncertainty around the Omicron variant.

 

November Nonfarm payrolls increased by just 210,000, well below the expected 573,000 figure. However, the unemployment rate fell sharply to 4.2%, better than estimates of 4.5%.

 

The omicron variant has now been detected in five U.S. states, with symptoms so far reported as mild. The World Health Organization said that the new strain, which was first spotted in South Africa, has now been detected in 38 countries, up from 23 just two days ago.

 

US 10-year treasury yield fell 9 bps to 1.358%. Dollar index was little changed at 96.15. Spot gold climbed 0.9% to $1,785.29 per ounce.

 

Brent crude rose 21 cents, or 0.3%, to settle at $69.88 a barrel, while WTI crude ended 24 cents, or 0.4%, lower at $66.26.

 

European markets fell 0.1%-0.6%.

 

For the week, US indices fell 0.9%-2.6%. In Europe, FTSE and CAC gained 1.1% and 0.4% respectively while DAX fell 0.6%. In Asia, Shanghai and Nifty gained 1.2% and 1% respectively while Nikkei and Hang Seng fell 2.5% and 1.3% respectively. Oil declined for a sixth week in a row, with WTI down 2.9% at $66.22 per barrel. Gold fell half a percent for its third consecutive fall.

 

AT HOME

 

After rising half a percent in the initial trade, Sensex and Nifty nosedived to end lower by 1.3% and 1.2% respectively, snapping 2-day winning streak. Sensex settled at 57696, down 764 points while Nifty lost 204 points to finish at 17196. Nifty mid-cap index ended flat while small-cap index gained 0.8%. BSE Energy index tumbled 2.3%, becoming top loser among the sectoral indices, followed by 1% each lower FMCG index and Bankex. Capital Goods and Industrials indices were the top gainers, up 0.8% and 0.2% respectively.

 

FIIs net sold stocks and index futures worth Rs 3356 cr and 2364 cr respectively but net bought stock futures worth Rs 1149 cr. DIIs were net buyers to the tune of Rs 1649 cr.

 

Rupee depreciated 16 paise to end at 75.16/$.

 

For the week, Sensex and Nifty gained 1% and 1.2% respectively, snapping 2-week losing streak.

 

OUTLOOK

 

Today morning, Shanghai is up 0.3% while Hang Seng and Nikkei are trading with cuts of 0.8% and 0.6% respectively. SGX Nifty is suggesting around 25 points higher start for our market.

 

In Friday's report we had said that 17650 and 17850, were the next upside levels to eye and that 17160 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17490, slipped to end at 17196.

 

17490, the top made on Friday, is the immediate hurdle. 17160 continues to be immediate support on the hourly chart, upon breach of which, 16930 and 16782 would be next downside levels to eye. Meanwhile, trading longs can be held on to with the stop-loss of 17150.

 

For Banknifty, 36844, the top made Friday, is the immediate hurdle, upon crossover of which, 20-DMA, placed around 37600, would be the next upside level to eye. 35327, the low made during the week, is the crucial support to eye.