RESISTED NEAR 34-DMA

 

RESISTED NEAR 34-DMA

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.9% each while Nasdaq tumbled 1.4% as Covid omicron fears hit sentiment.

 

UK Prime Minister Boris Johnson said on Sunday Britain faced an Omicron “tidal wave.” Yesterday he said at least one person has died in the UK due to the latest variant. China also reported its first omicron case. Also, the University of Oxford published results on showing two doses of the Oxford-AstraZeneca or Pfizer-BioNTech Covid-19 vaccines are substantially less effective at warding off omicron compared to previous variants of the coronavirus.

 

US 10-year treasury yield dipped 7 basis points to 1.419%. Dollar index rose 0.3% to 96.36. Spot gold inched up 0.2% to $1,786.19 per ounce.

 

Brent crude fell 76 cents, or 1%, to settle at $74.39 per barrel while WTI crude declined 38 cents, or 0.53%, to settle at $71.29 per barrel.

 

European markets fell upto 0.8%.

 

AT HOME

 

After rising nearly three fourth of a percent in the initial trade, Sensex and Nifty plunged to end lower by 0.8% and 0.9% respectively. Sensex settled at 58283, down 503 points while nifty lost 143 points to finish at 17368. Nifty mid-cap and small-cap indices fell 0.25% and 0.1% respectively. Except a flat Consumer Durables index, all the BSE sectoral indices ended in red, with Energy index leading the losses, down 1.8%, followed by 1.2% lower Realty and Oil & Gas indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2743 cr, 946 cr and 2163 cr respectively. DIIs were net buyers to the tune of Rs 1351 cr.

 

Rupee ended unchanged at 75.76/$.

 

India's November CPI inched up to 4.9% from 4.48% in October. Core inflation was unchanged at 6.1%.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are down nearly half a percent while Hang Seng is off nearly a percent. SGX Nifty is suggesting around 120 points lower start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 17675, continued to be next upside target and that immediate support on the hourly chart had moved up to 17325, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17639, reversed to end at 17368. The benchmark is set to open below 17300 today.

 

After this gap-down opening, the low made in first hour would be the immediate support to eye. If that breaks, 17000, where a trendline adjoining recent bottoms is placed, would be the next support to eye.

 

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

 

Below first hour low, next support for Banknifty will come around 36000; 37581, the top made yesterday, is the immediate hurdle.