18000 BELOW 18345; 18550-18600 IS THE IMMEDIATE RESISTANCE ZONE

 

18000 BELOW 18345; 18550-18600 IS THE IMMEDIATE RESISTANCE ZONE

 

WORLD MARKETS

 

US indices nosedived 2.2%-3.2% as poor retail sales data raised fears that the Federal Reserve’s relentless interest rate hikes are tipping the economy into a recession.

 

Retail sales fell 0.6% in November, higher than the estimate of a 0.3% decline.

 

US 10-year treasury yield fell 3 bps to 3.45%. 1% Dollar index jumped a percent to 104.60. Gold fell 1.7% to $1776.54 per ounce.

 

Brent futures fell 2.0% to $81.01 a barrel and WTI crude fell 2.3% to $75.51.

 

In Europe, FTSE fell 0.9% while DAX and CAC tumbled 3.3% and 3.1% respectively.  Bank of England, European Central Bank and Swiss National Bank, all three opted for 50 bps interest rate hikes as they try to rein in inflation. ECB president, Christine Lagarde, stressed that “significant” further rate rises at a “steady pace” were still to come.

 

AT HOME

 

Sensex and Nifty nosedived 1.4% and 1.3% respectively, suffering the worst cut after 11th October and closing at the lowest level after 23rd November. Sensex settled at 61799, down 878 points while Nifty lost 245 points to finish at 18414. Nifty mid-cap and small-cap indices fell 1% and 0.6% respectively. All the NSE sectoral indices ended in red, with IT and Media indices being the top losers, down 2.1% each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 711 cr, 1935 cr and 1970 cr respectively. DIIs were net buyers to the tune of Rs 261 cr.

 

Rupee depreciated 30 paise to end at 82.76/$.

 

India's November trade deficit stood at $23.89 bn Vs $21.23 in the same month last year.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-1.6% and SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 18550-18500 is the immediate support area, below which, 18345, the low made Monday, would be the crucial support; We had also said that a crossover of 18696 is required to generate a "Buy" on the hourly chart.

 

Nifty broke 18550-18500 support area and plunged all the way to 18387 before closing at 18414.

 

18345, the low made Monday, is the important support to eye. A decisive breach of this level can take Nifty to 18000; 18550-18600 is the immediate resistance zone.

 

43100-42900 is the next support area for Banknifty; 43900 is the immediate hurdle.