TRAIL STOP-LOSS TO 17430

 

TRAIL STOP-LOSS TO 17430

 

WORLD MARKETS

 

Dow rose 0.6% as shares that stand to benefit from an economic recovery rose while S & P 500 and Nasdaq fell 0.1% and 1.3% respectively amid a rapid rise in Treasury yields.

 

ISM Manufacturing index for December registered a 58.7% reading, below the 60% expectation and a drop from 61.1% in November. Labor Department's Job Openings and Labor Turnover Survey showed workers quit their jobs in record numbers in November.

 

US 10-year treasury yield rose 2 bps to 1.651%. Dollar index inched up 0.1% to 96.28. Spot gold rose 0.8% to 1,814.45 per ounce.

 

Brent crude futures rose 1.1% to $79.87 a barrel while WTI crude rose 1% to $76.89. OPEC and its non-OPEC allies decided to raise its output target by 400,000 barrels per day from next month, as was widely expected.

 

European markets gained 0.8%-1.6%.

 

AT HOME

 

Sensex and Nifty surged 1.1% and 1% respectively, extending the winning streak to third straight day. Sensex settled at 59855, up 672 points while Nifty added 179 points to finish at 17805. Nifty mid-cap and small-cap indices however underperformed by rising just 0.3% each. BSE Power and Utilities indices climbed 2.2% each, becoming top gainers among the sectoral indices while Healthcare index fell the most, down 0.7%, followed by 0.6% lower Realty and Metal indices.

 

FIIs net bought stocks and index futures worth Rs 1274 cr and 703 cr respectively but net sold stock futures worth Rs 1425 cr. DIIs were net buyers to the tune of Rs 533 cr.

 

Rupee depreciated 29 paise to end at 74.55/$.

 

OUTLOOK

 

Today morning, Nikkei is little changed while Hang Seng and Shanghai are down 0.7% and 0.2% respectively. SGX Nifty is suggesting around 35 points lower start for our market.

 

In yesterday's report we had said that 17766 and 17880, the 61.8% and 67% retracement levels of the entire 18604-16410 fall, are the next upside levels to eye and that immediate support on the hourly chart had moved up to 17310, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to touch a high of 17827 before closing at 17805.

 

17880, the 67% retracement level of the entire 18604-16410 fall, is the next upside level to eye, above which, 18210, the top made in November, would be the next target; Immediate support on the hourly chart has moved up to 17430, with the stop-loss of which, trading longs can be held on to.

 

37200, around which a trendline adjoining recent tops is placed, is the upside level to eye for Banknifty, above which, 37600 and 37900 would be next targets; 35750 is immediate support.