17325, 17490 ARE THE UPSIDE LEVELS TO EYE; 16890 IMMEDIATE SUPPORT

 

17325, 17490 ARE THE UPSIDE LEVELS TO EYE; 16890 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices surged 1.4%-3%, with the S&P 500 and Nasdaq Composite posting their best days since March

 

US 10-year treasury yield rose 4 bps to 1.477%. Dollar index was flat at 96.29. Gold inched up 0.3% to $1783 per ounce.

 

Brent crude futures settled up $2.36, or 3.2%, at $75.44 a barrel and WTI crude rose $2.56, or 3.7%, to $72.05.

 

European markets gained 1.5%-2.9%. German industrial output surprised in October to grow 2.8% from the previous month, after a revised contraction of 0.5% in September. On the flip side, ZEW economic sentiment index fell to 29.9 from 31.7 in November.

 

AT HOME

 

Benchmark indices soared 1.6% each, posting biggest percentage gains since 23rd September and recouping most of the losses suffered in yesterday's session. Sensex settled at 57633, up 886 points while Nifty added 264 points to finish at 17176. Nifty mid-cap and small-cap indices rose 1.4% and 1.1% respectively. All the BSE sectoral indices ended higher, with Metal and Realty indices leading the gains, up 3.2% and 2.6% respectively.

 

FIIs net sold stocks worth Rs 2585 cr but net bought index futures and stock futures worth Rs 2300 cr and 1567 cr respectively. DIIs were net buyers to the tune of Rs 2606 cr.

 

Rupee depreciated 2 paise to end at 75.44/$.

 

OUTLOOK

 

Today morning, Nikkei is up 1% while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting around 90 points higher start for our market.

 

In yesterday's report we had said that 16782, the low made last week, was the next downside level to eye and that 17200 was the immediate hurdle, with the stop-loss of which, trading shorts could be held on to.

 

Nifty soared to touch a high of 17251 before closing at 17176. The benchmark is set to open near 17250 today.

 

17325, followed by 17490, are the upside levels to eye; 16891, the bottom made Monday, is the immediate support.

 

20-DMA, placed around 37300, is the upside level to eye for Banknifty; 35700 is immediate support.

 

RBI is expected to keep repo rate unchanged amid uncertainties over new coronavirus variant Omicron. Markets will be looking for guidance on the inevitable return of policy to pre-pandemic settings, with some economists expecting a hike in reverse repo rate.