18500-18550 IS THE RESISTANCE ZONE

 

18500-18550 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

US indices ended flat to modestly higher, snapping 4-day losing streak.

 

Bank of Japan unexpectedly raised its cap on 10-year Japanese government bond yields, in a move aimed at cushioning the effects of protracted monetary stimulus measures. The move prompted the Japanese yen and bond yields around the world to rise suddenly.

 

US 10-year treasury yield rose 10 bps to 3.688%. Dollar index fell 0.7% to 103.97. Gold jumped 1.7% to $1818 per ounce.

 

Brent crude futures rose 19 cents to $79.99 while WTI crude futures settled up 90 cents at $76.09 per barrel.

 

In Europe, FTSE inched up 0.1% but DAX and CAC fell 0.4% each.

 

AT HOME

 

After plunging more than a percent in the morning, benchmark indices recouped most of the losses in noon rebound to end lower by just a fifth of a percent. Sensex settled at 61702, down 104 points while Nifty lost 35 points to finish at 18385. Nifty mid-cap and small-cap indices fell 0.2% and 0.4% respectively. Nifty Realty index was the top loser among the sectoral indices, down 1.2%, followed by 0.8% lower Media and Auto indices. Oil & Gas and IT indices were the top gainers, up 0.2% each.

 

FIIs net bought stocks worth Rs 456 cr but net sold index futures and stock futures worth Rs 2986 cr and 1130 cr respectively. DIIs were net buyers to the tune of Rs 495 cr.

 

Rupee depreciated 5 paise to end at at 82.76/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of upto 0.6% and SGX Nifty is suggesting around 75 points higher start for our market.

 

In yesterday's report we had said that 20-DMA, placed around 18540, continued to be immediate hurdle while 18133, the low made on 21st November, continued to be next support.

 

Nifty, after touching a low of 18202, rebounded sharply to end at 18385. The benchmark is set to start near 18450 today.

 

18500-18550 continues to be immediate resistance zone; 18133, the low made on 21st November, continues to be next support.

 

For Banknifty, 43600 is the immediate hurdle on the hourly chart, above which, 44151, the top made last week, would be the next target; 42955, the low made yesterday, is the immediate support, below which, 34-DMA, placed around 42800, would be crucial support to eye.