17500 IS THE NEXT UPSIDE TARGET; 17165 IMMEDIATE SUPPORT

 

17500 IS THE NEXT UPSIDE TARGET; 17165 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.2%-0.6% on Friday, the last trading day of the year.

 

US 10-year treasury yield was little changed at 1.512%. Dollar index fell a third of a percent to 95.67. Gold rose 0.8% to $1829 per ounce to hit its highest level since 22 November.

 

Brent crude futures fell 86 cents, or 1.1%, to $78.67 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 80 cents, or 1%, to $76.19 a barrel.

 

In Europe, FTSE and CAC fell a fourth of a percent while DAX was shut.

 

For the week, Dow and S & P 500 gained 1.1% and 0.8% respectively while Nasdaq was little changed. European markets inched up 0.2%-0.9%. In Asia, Nikkei was flat while other markets gained 0.6%-2%, with Nifty on the top.

 

For the year, Dow, S & P 500 and Nasdaq jumped 18.7%, 26.9% and 21.4% respectively , extending the winning streak to third consecutive year. In Europe, FTSE and DAX saw gains of around 15% for the year, while the French CAC logged a rise of nearly 30%.

 

Brent and WTI crude surged nearly 53% and 57% respectively,  the strongest performance for the two benchmark contracts since 2009, when prices soared more than 70%.

 

Dollar index surged neary 7% for its best year since 2015. Gold fell around 4% , marking biggest yearly decline since 2015.

 

AT HOME

 

After a two-day pause, bulls were back in action as Sensex and Nifty climbed 0.8% and 0.9% respectively to close at the highest level after 13th December. Sensex settled at 58253, up 459 points while Nifty added 150 points to finish at 17354. Nifty mid-cap and small-cap indices soared 1.4% each. All the BSE sectoral indices ended in green, with Metal and Consumer Durables indices leading the tally, up 2.1% and 2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 575 cr, 884 cr and 1140 cr respectively. DIIs were net buyers to the tune of Rs 1166 cr.

 

Rupee appreciated 8 paise to end at 74.33/$.

 

For the week, month and calendar 2020, Nifty gained 2%, 2.2% and 24.1% respectively.

 

India's Core sector growth in November slowed to a 10 month low of 3.1% as against 8.4% registered in October.

 

India's April-November fiscal deficit narrowed to 46.2% of the full-year budged target, helped by a rise in tax collections.

 

Tata Motors reported 24% y-o-y jump in December sales at 66307 units; it's EV sales soared 439% to 2255 units. M & M total sales rose 11% to 39157 units but tractor sales fell 19% to 18369 units. Eicher Motors' Royal Enefield sales rose 7% to 73739 units. Maruti posted 4.4% dip at 1.53 lk units. Hero Motocor sales too fell 12% to 3.94 lk units. Escorts sales plunged 39.45 to 4695 units.

 

OUTLOOK

 

Today morning, Shanghai is up 0.6%, SGX Nifty is suggesting a marginally higher start for our market.

 

In Friday's report we had said that 34-DMA, placed around 17300, was the upside hurdle to eye, upon crossover of which, 17500, where a trendline adjoining tops made in October and November was placed, would be the next upside level to eye. We had also said that 17050 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty crossed 17300 hurdle and touched a high of 17400 before closing at 17354.

 

17500, where a trendline adjoining tops made in October and November is placed, is the next upside level to eye; 20-DMA, placed around 17165, is the immediate support on the way down, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 200-DMA and 20-DMA, placed around 35700 and 35830 are the immediate upside levels to eye; 34750 is the immediate support on the hourly chart.