17225 IS THE IMMEDIATE SUPPORT; 17639 IMMEDIATE HURDLE

 

17225 IS THE IMMEDIATE SUPPORT; 17639 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.3%-1.1% as some large tech stocks moved lower and new inflation data continued to show a sharp rise in prices. Warning from World Health Organization that the omicron variant is spreading faster than any previous strain also weighed on the sentiment.

 

November’s producer price index showed a y-o-y increase of 9.6%, the fastest pace on record and above the 9.2% expectation. The index rose 0.8% month over month, above the 0.5% expected.

 

US 10-year treasury yield rose 3 bps to 1.45%. Dollar index rose 0.2% to 96.5520. Spot gold fell 0.9% to $1,771.66 per ounce.

 

Brent crude futures fell 69 cents, or 0.9%, to $73.70 while WTI crude futures settled down 56 cents, or 0.8%, at $70.73.

 

European markets fell 0.2%-1.1%.  U.K. employment data remained strong in November, with 257,000 staff added to payroll.

 

The Fed will conclude its two-day policy meeting today and is widely expected to announce an acceleration of the tapering of its bond-buying program.

 

AT HOME

 

Benchmark indices ended lower by nearly three tenth of a percent after a rangebound but choppy session, extending the losing streak to third straight day. Sensex settled at 58117, down 166 points while Nifty lost 43 points to finish at 17325. Nifty mid-cap index fell 0.2% while small-cap index inched up 0.2%. BSE Telecom and Auto indices tumbled 1.4% and 0.9% respectively, becoming top losers among the sectoral indices while Power and Utilities indices were the top gainers, up 1.4% and 1.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 763 cr, 1657 cr and 2182 cr respectively. DIIs were net buyers to the tune of Rs 425 cr.

 

Rupee depreciated 10 paise to end at 75.87/$.

 

India's WPI inflation for the month of November came in at 14.2% vs 12.5% in October.

 

OUTLOOK

 

Today morning, Asian markets are trading flat to marginally higher while SGX Nifty is suggesting around 20 points lower start for our market.

 

In yesterday's report we had said that If first hour low breaks, 17000, where a trendline adjoining recent bottoms is placed, would be the next support to eye. We had also said that 17639, the top made Monday, which, roughly coincided with 34-DMA, was the important immediate hurdle to eye.

 

Nifty, after touching a lowe of 17225, rebounded to end at 17325.

 

17225, the low made yesterday, is the immediate support, upon breach of which, 17050, where a trendline adjoining recent bottoms is placed, would be the next downside level to eye.

 

17639, the top made Monday, which, roughly coincided with 34-DMA, is the important immediate hurdle to eye.

 

36545, the low made yesterday, is the immediate support for Banknifty, upon breach of which, 36150, around which a trendline adjoining recent bottoms is placed, would be the next support to eye; 37581, the top made Monday, is the immediate hurdle.