34-DMA CONTINUES TO BE IMMEDIATE HURDLE; 17050 IMMEDIATE SUPPORT

 

34-DMA CONTINUES TO BE IMMEDIATE HURDLE; 17050 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.2%-0.3% with the Dow snapping a six-day winning streak.

 

Jobless claims for last week came in at 198,000, lower than the expected 205,000 figure.

 

US 10-year treasury yield fell 3.5 bps to 1.508%. Dollar index inched up 0.1% to 96. Gold rose half a percent to $1814 per ounce.

 

Brent crude advanced 0.11% to $79.32 per barrel and WTI crude futures settled 0.56% higher at $76.99 per barrel.

 

In Europe, FTSE fell 0.2% while DAX and CAC gained 0.2% each.

 

AT HOME

 

Benchmark indices ended little changed after a rangebound trade on the expiry day of the December derivative series. Sensex settled at 57794, down 12 points while Nifty eased 10 points to finish at 17204. Nifty mid-cap index fell 0.4% while small-cap index inched up 0.24%. BSE IT and Teck indices climbed 1% and 0.8% respectively, becoming top gainers among the sectoral indices while Energy and Oil & Gas indices were the top losers, down 1.6% and 1.4% respectively.

 

FIIs net sold stocks worth Rs 986 cr but net bought index futures and stock futures worth Rs 425 cr and 1153 cr respectively. DIIs were net buyers to the tune of Rs 577 cr.

 

Rupee appreciated 32 paise to end at 74.41/$.

 

For the December derivative series, Nifty fell 1.9%.

 

OUTLOOK

 

Nikkei is shut today while Hang Seng and Shanghai are up 1.8% and 0.4% respectively. SGX Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 17320 was the upside hurdle to eye and that 17000 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a low of 17146 closed at 17204.

 

34-DMA, which has now moved closer to 17300, is the upside hurdle to eye, upon crossover of which, 17500, where a trendline adjoining tops made in October and November is placed, would be the next upside level to eye; 17050 is the 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 be immediate hurdle, upon crossover of which, 20-DMA, placed around 35900, would be the next upside level to eye; 34233, the low made Monday, is the immediate support.