17675 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 17325

 

17675 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 17325

 

WORLD MARKETS

 

US indices gained 0.6%-1% on Friday with the S&P 500 closing at a record.

Consumer Price inflation soared 6.8% y-o-y in Novemebr to highest rate since 1982. Month-on-month increase stood at 0.8%. Core CPI, which excludes food and energy prices, rose 0.5% for the month and 4.9% from a year ago.

US 10-year treasury yield was little changed at 1.485%. Dollar index fell 0.2% to 96.05. Spot gold rose 0.1% to $1,776.23 per ounce.

 

European markets fell 0.1%-0.4%. The U.K. economy grew just 0.1% month-on-month in October, shy of expectations for a 0.4% expansion. British industrial output fell 0.6% month-on-month in October, again falling short of economist expectations for a 0.1% rise. Final German consumer price index inflation was confirmed at -0.2% month-on-month in November for a 5.2% annual incline.

 

For the week, Dow climbed 4%, snapping a 4-week losing streak while S&P 500 and Nasdaq Composite added 3.8% and 3.6% respectively. WTI as well as Brent surged more than 7%, their first weekly gain in seven. Gold fell 0.4% for its fourth weekly fall. Dollar index was little changed at 96.05.

 

AT HOME

 

After falling more than half a percent, benchmark indices recouped all the losses in late noon rebound to end little changed. Sensex settled at 58786, down 20 points while Nifty lost 5 points to finish at 17511. Nifty mid-cap and small-cap indices gained 0.8% each. BSE Realty index surged 2.9%, becoming top gainer among the sectoral indices, followed by 0.9% higher Oil & Gas index. Consumer Durables and Telecom indices were the top losers, down 0.3% and 0.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1092 cr, 1323 cr and 508 cr respectively. DIIs were net buyers to the tune of Rs 387 cr.

 

Rupee depreciated 24 paise to end at 75.76/$.

 

For the week, Sensex and Nifty gained 1.9% and 1.8% respectively, extending the winning streak to second consecutive week.

 

India's industrial production expanded at 3.2% in October, as against 3.3% in September.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 1%-1.6% and SGX Nifty is suggesting around 140 points higher start for our market.

 

In Friday's report we had said that 34-DMA, placed around 17690, continued to be next upside level to eye and had advised holding on to long positions with the stop-loss of 17260.

 

Nifty, after touching a low of 17405, rebounded to end at 17511 and is set to open above 17600 today.

 

34-DMA, placed around 17675, continues to be next upside target; Immediate support on the hourly chart has moved up to 17325, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 34-DMA, placed around 38200, is the next upside target/resistance to eye; 36800 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.