17560 CONTINUES TO BE IMMEDIATE SUPPORT; 17944 IMMEDIATE HURDLE

 

17560 CONTINUES TO BE IMMEDIATE SUPPORT; 17944 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow fell half a percent while S & P 500 and Nasdaq inched lower by 0.1% each.  Nasdaq fell for its seventh negative session in the last eight.

 

Weekly jobless claims totaled 207,000 for the week ended Jan. 1, higher than the expected 195,000. U.S. trade deficit widened sharply in November to $80.2 billion from a revised $67.2 billion in October. ISM services index fell to three-month low of 62% last month from record 69.1% in November.

 

US 10-year treasury yield rose 2 bps to 1.725%. Dollar index inched up 0.1% to 96.24. Gold slipped 1% to $1791 per ounce

 

Brent crude futures advanced $1.19, or 1.5%, to $81.99 per barrel and WTI futures settled 2.07%, or $1.61, higher at $79.46 per barrel on escalating unrest in OPEC+ oil producer Kazakhstan and supply outages in Libya.

 

European markets fell 0.9%-1.8%.

 

AT HOME

 

Benchmark indices slipped a percent each, snapping 4-day winning streak. Sensex settled at 59601, down 621 points while Nifty lost 179 points to finish at 17745. Nifty mid-cap and small-cap indices however inched up 0.1% and 0.2% respectively. BSE Realty and IT indices were the top losers among the sectoral indices, down 1.5% and 1.4% respectively whereas Telecom index climbed 1.3%, becoming the top gainer, followed by 0.6% higher Auto index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1927 cr, 3013 cr and 1249 cr respectively. DIIs were net buyers to the tune of Rs 801 cr.

 

Rupee depreciated 13 paise to end at 74.49/$.

 

OUTLOOK

 

Today morning Asian markets are trading with gains of 0.3%-0.7% and SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 18210, the top made in November, was the next upside level to eye and that immediate support on the hourly chart had moved up to 17560, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a low of 17655, rebounded to end at 17745.

 

17560 continues to be immediate support on the hourly chart; 17944, the top made on Wednesday, is the immediate upside level to eye, above which, 18210, the top made in November, would be the next target.

 

Meanwhile, trading longs can be held on to with the stop-loss of 17560.

 

For Banknifty, above 37900, 38850 and 39250, the 61.8% and 67% retracement levels of the entire 41830-34018 fall, would be the next targets; 36200 is the immediate support.