34-DMA CONTINUES TO BE IMMEDIATE HURDLE; 17000 IMMEDIATE SUPPORT

 

34-DMA CONTINUES TO BE IMMEDIATE HURDLE; 17000 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 saw modest gains to close at new records while Nasdaq inched lower by 0.1%.

 

The U.S. goods trade deficit hit a record in November at $97.8 billion, up $14.6 billion from $83.2 billion in October.

 

US 10-year treasury yield jumped 7 bps to 1.55%. Dollar index fell 0.3% to 95.88. Gold, after hitting an intraday low of $1789, rebounded to end flat at $1804 per ounce.

 

Brent crude climbed 29 cents, or 0.4%, to settle at $79.23 per barrel and WTI crude settled 58 cents, or 0.8%, higher at $76.56 per barrel.

 

In Europe, FTSE gained 0.7% while DAX and CAC eased 0.7% and 0.3% respectively.

 

AT HOME

 

After rising three tenth of a percent in the initial trade, benchmark indices slipped to end marginally in the red, snapping 2-day winning streak. Sensex settled at 57806, down 90 points while Nifty lost 19 points to finish at 17213. Nifty mid-cap and small-cap indices however gained 0.1% and 0.6% respectively, extending the winning streak to third straight day. BSE Metal index was the top loser among the sectoral indices, down 1%, followed by 0.6% lower Power and Utilities indices. Healthcare index was the top gainer, up 1.7%, followed by 0.4% higher Auto index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 975 cr, 162 cr and 264 cr respectively. DIIs were net buyers to the tune of Rs 1007 cr.

 

Rupee depreciated 8 paise to end at 74.73/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.6% and 0.2% respectively while Nikkei is down 0.1%. SGX Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 17350, continued to be next upside level to eye and that immediate support on the hourly chart had moved up to 17000, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17285, slipped to end at 17213.

 

34-DMA, placed around 17320 is the upside hurdle to eye; 17000 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

For Banknifty, 35535, the upper end of the gap created by last week's gap-down opening, continues to bee immediate hurdle, upon crossover of which, 20-DMA, placed around 36000, would be the next upside level to eye; 34233, the low made Monday, is the immediate support.