STAY SHORT WITH THE STOP-LOSS OF 17200

 

STAY SHORT WITH THE STOP-LOSS OF 17200

 

WORLD MARKETS

 

US indices surged 0.9%-1.9% on hopes that the new Covid-19 strain may cause milder illness than feared.

 

Reports in South Africa said Omicron cases there had only shown mild symptoms and the top U.S. infectious disease official, Anthony Fauci, told CNN “it does not look like there’s a great degree of severity” so far, though he cautioned that more information was needed to fully understand it.

 

On Saturday, Goldman Sachs cut its U.S. GDP growth forecast for full-year 2022 to 3.8% from 4.2%, citing fresh uncertainty over economic reopening and global goods supply shortages due to the variant.

 

China’s central bank cut the reserve requirement ratio which will release 1.2 trillion yuan ($282 billion) to boost slowing growth amid the pandemic.

 

US 10-year treasury yield jumped 10 basis points to 1.441%. The dollar index inched 0.10% higher at 96.29. Spot gold fell 0.2% to $1,780.95 an ounce.

 

Brent crude rose $3.20, or 4.6%, to settle at $73.08 a barrel and WTI crude rose $3.23, or 4.9%, to settle at $69.49 a barrel.

 

European markets climbed 1.4%-2.4%. German industrial orders plunged 6.9% month-on-month on October, well below the consensus forecast of a 0.5% decline.

 

AT HOME

 

Benchmark indices plunged 1.65% each to close at the lowest level since 27th August 2021. Sensex settled at 56747, down 949 points while Nifty lost 284 points to finish at 16912. Nifty mid-cap and small-cap indices fell 1.2% and 1.4% respectively. All the BSE sectoral indices ended in red, with IT and Teck indices leading the losses, down 2.5% and 2.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3361 cr, 1155 cr and 790 cr respectively. DIIs were net buyers to the tune of Rs 1702 cr.

 

Rupee depreciated 26 paise to end at 75.42/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-1.4% and SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 17490, the top made on Friday, was the immediate hurdle and that 17160 continued to be immediate support on the hourly chart, upon breach of which, 16930 and 16782 would be next downside levels to eye.

 

Nifty broke 17160 support and plunged all the way to 16891 before closing at 16912.

 

16782, the low made last week, is the next downside level to eye, upon breach of which, 34-week moving average, placed around 16500, would be the crucial support.

 

17200 is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

35327, the low made last week, is the immediate support for Banknifty, below which, 34200 and 33800 would be next downside levels to eye; 36250 is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.