TRAIL STOP-LOSS TO 18050

 

TRAIL STOP-LOSS TO 18050

 

WORLD MARKETS

 

Dow fell 0.6% as major bank stocks declined after their earnings reports while S & P 500 and Nasdaq gained 0.1% and 0.6% respectively

 

JP Morgan Chase shares plunged 6% as CFO Jeremy Barnum warned that the company would likely miss a key profit target in the next two years. Citigroup’s stock fell nearly 1.3% after the bank beat revenue estimates but showed a 26% decline in profits.

 

Retail sales were down 1.9% in December, a worse reading than the 0.1% drop expected. January’s preliminary consumer sentiment reading from the University of Michigan came in lower than expected as Americans reported higher long-term inflation expectations. Business inventories for November came in higher than expected, but industrial production disappointed, declining 0.1% compared to a projected 0.2% gain.

 

US 10-year treasury yield jumped more than 7 bps to 1.784%. The U.S. dollar index rose 0.3% to 95.157, snapping a 3-day losing streak. Spot gold was down 0.3% at $1,816.22 per ounce.

 

Brent crude settled $1.59, or 1.9%, higher at a 2-1/2-month high of $86.06 a barrel and WTI crude gained $1.70, or 2.1%, to $83.82 per barrel.

 

European markets fell 0.3%-1%. U.K. economy grew by 0.9% in November, vastly outstripping expectations and taking its GDP above its pre-pandemic level for the first time. Germany’s economy grew 2.7% in 2021 after a 4.6% plunge in 2020.

 

For the week, Nasdaq and S & P 500 fell 0.3% each while Dow was down 0.9%. Brent and WTI crude surged 5.4% and 6.3% respectively.

 

AT HOME

 

Benchmark indices ended marginally in the red, snapping 5-day winning streak. Sensex settled at 61223, down 12 points while Nifty lost 2 points to finish at 18255. Nifty mid-cap index was flat while small-cap index gained 0.8%. BSE Capital Goods and Realty indices were the top gainers among the sectoral indices, up 1.4% and 1.1% respectively while Telecom and FMCG indices were the top losers, down 1.2% and 0.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1598 cr, 626 cr and 896 cr respectively. DIIs were net buyers to the tune of Rs 371 cr.

 

Rupee depreciated 27 paise to end at 74.15/$.

 

For the week, Sensex and Nifty gained 2.5% each, extending the winning streak to fourth consecutive week and closing at the highest level after the week ended 14th October, 2021.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 0.6% and 0.3% respectively while Hang Seng is down 0.6%. SGX Nifty is suggesting around 80 points lower start for our market.

 

In Friday's report we had said that 18342, the top made on 27th October, continued to be the next upside level to eye, upon crossover of which, 18604, the top made in October 2021, would be the next major target. We had also said that immediate support on the hourly chart had moved up to 17950, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a low of 18119, rebounded to end at 18255 and is set to open below 18200 today.

 

Immediate support on the hourly chart has moved up to 18050, upon breach of which, 17700-17650 would be the next support zone.18342, the top made on 27th October, 2021 is the next upside level to eye, upon crossover of which, 18604, the all-time high made on 19th October, would be the next big target. Meanwhile, trading longs can be held on to with the stop-loss of 18050.

 

For Banknifty, 38851, the top made during the week, is the immediate hurdle, upon crossover of which, 39250, the 67% retracement level of the entire 41830-34440 fall, would be the next upside target. 38000 is the immediate support on the hourly chart, upon breach of which, 37430 and 37060 would be the next downside levels to eye.

 

Ultratech Cement will report its quarterly earnings today.

 

U.S. markets will remain closed today for Martin Luther King Jr. Day.