18200 CONTINUES TO BE IMMEDIATE HURDLE

 

18200 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US and European markets were shut yesterday for Christmas holiday.

 

AT HOME

 

After last week's savage cuts, bulls tried to make a comeback as benchmark indices surged 1.2% in today's trade. Sensex settled at 60566, up 721 points while Nifty added 207 points to finish at 18014. Nifty mid-cap and small-cap indices soared 2.7% and 3.8% respectively. Except 0.8% lower Healthcare and Pharma indices each, all the sectoral indices ended higher, with PSU Bank index on the top, up 7.3%, followed by 2.8% higher Media index.

 

FIIs net sold stocks worth Rs 498 cr but net bought index futures and stock futures worth Rs 1032 cr and 2298 cr respectively. DIIs were net buyers to the tune of Rs 1286 cr.

 

Rupee appreciated 21 paise to end at 82.65/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up nearly half a percent and SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that upon breach of Friday's low. i.e. 17779, next support to watch out for Nifty would be 17565, which is the 61.8% retracement level of the 16747-18887 upmove. We had also advised trailing stop-loss in short positions to 18200.

 

Nifty, after making a low of 17774 at the open, surged all the way to 18084 before closing at 18014.

 

17774, the low made yesterday, is the immediate support, upon breach of which, 17565, the 61.8% retracement level of the 16747-18887 upmove, would be the next downside level to eye; 18200 continues to be immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

41800-41900 is the immediate resistance zone for Banknifty; 41569, the low made yesterday, is the immediate support.