18342, 18604 ARE NEXT LEVELS TO EYE; TRAIL STOP-LOSS TO 17900

 

18342, 18604 ARE NEXT LEVELS TO EYE; TRAIL STOP-LOSS TO 17900

 

WORLD MARKETS

 

US indices inched up 0.1%-0.3% after a key inflation report showed a historic gain but largely matched expectations.

 

December CPI surged 7% y-o-y for its biggest jump since 1982, but was in-line with expectations. The monthly increase, at 0.5%, was slightly hotter than expected. Core CPI, which excludes food and energy prices, increased 5.5% y-o-y and 0.6% from the previous month. That compared to estimates of 5.4% and 0.5%.

 

US 10-year treasury yield were little changed at 1.736%. Dollar index tumbled 0.6% to 94.987, its lowest in two months. Gold inched up a fourth of a percent to $1826 an ounce.

 

Oil prices hit two-month highs with Brent rising $1.24, or 1.5%, to $84.96 per barrel and WTI surgind 2%, or $1.62, to $82.84 per barrel.

 

European markets gained 0.4%-0.8%.

 

AT HOME

 

Benchmark indices climbed 0.9% each, extending the winning streak to fourth consecutive day and closing at the highest level after 26th October, 2021. Sensex settled at 61150, up 533 points while Nifty finished at 18212, up 156 points. Nifty mid-cap and small-cap indices added 1.2% and 0.9% respectively. Except marginally lower Consumer Durables and Healthcare indices, all the BSE sectoral indices ended in green, with Telecom index on the top, up 3.2%, followed by 2.2% higher Power and Utilities indices.

 

FIIs net sold stocks and index futures worth Rs 1002 cr and 142 cr respectively but net bought stock futures worth Rs 584 cr. DIIs were net buyers to the tune of Rs 1332 cr.

 

Rupee ended flat at 73.91/$.

 

Industrial growth fell to a nine-month low of 1.4% in November while retail inflation accelerated to a six-month high of 5.59% in December.

 

Infosys reported expectation beating 7% q-o-q growth in dollar revenue and also raised FY22 revenue growth guidance to 19.5%-20% from 16.5%-17.5% earlier. TCS too reported better-than-expected 4.5% dollar revenue growth and announced Rs 18000 cr buyback at Rs 4500 per share. Wipro's 3% growth however, was lower than expectation.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are down 0.8% and 0.2% respectively while Hang Seng is flat. SGX Nifty is suggesting around 90 points higher start for our market.

 

In yesterday's report we had reiterated the view that 18210, the top made in November, continued to be next upside target and that immediate support on the hourly chart had moved up to 17880, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to 18228 before closing at 18212, achieving above mentioned target and vindicating our view. The benchmark is set to open near 18300 today.

 

18342, the top made on 27th October, is the next upside level to eye, upon crossover of which, 18604, the top made in October 2021, would be the next major target.

 

Immediate support on the hourly chart has moved up to 17900, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 39250 the 67% retracement levels of the entire 41830-34018 fall, is the next upside levels to eye; Immediate support has moved up to 37940.