18133 IS THE NEXT SUPPORT; 20-DMA HURDLE AROUND 18530

 

18133 IS THE NEXT SUPPORT; 20-DMA HURDLE AROUND 18530

 

WORLD MARKETS

 

US indices fell 0.8%-1.1% on heightened recession fears following the Federal Reserve’s unrelenting rate hiking.

 

US 10-year treasury yield rose 4 bps to 3.49%. Dollar index rose 0.2% to 104.84. Gold rose 0.9% to $1792 per ounce.

 

Brent crude futures fell 2.7% to $79.04 a barrel and WTI crude futures slipped 2.4%, to $74.29 a barrel.

 

European markets fell 0.7%-1.3%.

 

For the week, US indices fell 1.7%-2.7%, extending the losing streak to second straight week. In Europe, FTSE fell 1.9% while DAX and CAC fell 3.3% each. Asian markets dipped 1%-2%.

 

AT HOME

 

Benchmark indices fell eight tenth of a percent, extending yesterday's big plunge. Sensex settled at 61337, down 461 points while Nifty lost 146 points to finish at 18269. Nifty mid-cap and small-cap indices fell 1.6% and 0.6% respectively. All the NSE sectoral indices ended in red, with PSU Bank index leading the losses, down 2.9%, followed by 1.5% lower Realty and Healthcare indices.

 

FIIs net sold stocks worth Rs 1975 cr but net bought index futures and stock futures worth Rs 514 cr and 267 cr respectively. DIIs were net buyers to the tune of Rs 1542 cr.

 

Rupee depreciated 11 paise to end at 82.87/$.

 

For the week, Sensex and Nifty fell 1.4% and 1.2% respectively, extending the losing streak to second consecutive week.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are down 1.1% and 0.6% respectively but Hang Seng is up half a percent. SGX Nifty is suggesting around 40 points higher start for our market.

 

In Friday's report we had said that 18345, was the important support, a breach of which can take Nifty to 18000. We had also said that 18550-18600 was the immediate resistance zone.

 

Nifty broke 18345 and fell all the way to 18255 before closing at 18269.

 

18133, the low made on 21st November is the next support, below which, a trendline adjoining bottoms made in June and September would land support in 18000-18050 region; On the way up, 20-DMA, placed around 18530 would be the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 43080, the low of the week made on Friday, is the immediate support, upon breach of which, 34-DMA, placed around 42700, would be crucial support to eye. On the way up, 43800 is the immediate hurdle on the hourly chart, above which, 44151, the top made during the week, would be next resistance.