18668 CONTINUES TO BE IMMEDIATE HURDLE; 34-DMA LANDS SUPPORT AT 18310

 

18668 CONTINUES TO BE IMMEDIATE HURDLE; 34-DMA LANDS SUPPORT AT 18310

 

WORLD MARKETS

 

US indices climbed 1.3%-1.6%. Markets are gearing up for November CPI data due Tuesday and announcement of Fed interest rate decision a day later.

 

A New York Fed survey showed consumers had grown more optimistic about inflation in November.

 

US 10-year treasury yield rose 3 bps to 3.613%. Dollar index inched up 0.1% to 105. Gold fell 0.9% to $1781 per ounce.

 

Brent crude futures rose 2.5% to $77.99 a barrel and WTI crude climbed 3% to $73.17 a barrel.

 

In Europe, FTSE, DAX and CAC fell 0.4% each.

 

AT HOME

 

After falling nearly eight tenth of a percent in the initial trade, benchmark indices recouped all the losses through the session to end almost flat. Sensex settled at 62130, down 51 points while Nifty ended flat at 18497. Nifty mid-cap and small-cap indices gained 0.4% and 0.6% respectively. Nifty PSU Bank and Oil & Gas indices climbed 1.4% and 1% respectively, becoming top gainers among sectoral indices while Consumer Durables and IT indices were the top losers, down 0.9% and 0.4% respectively.

 

FIIs net sold stocks and stock futures worth Rs 139 cr and 310 cr respectively but net bought index futures worth Rs 658 cr. DIIs were net buyers to the tune of Rs 696 cr.

 

Rupee depreciated 26 paise to end at 82.53/$.

 

India's retail inflation slowed to an 11-month low of 5.88% in November as against 6.77% in the previous month.

 

Industrial production had it's worst reading in 2-years as it degrew 4% in October as against growth of 3.1% in the previous month.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.4% each while Shanghai is little changed. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 18410, the low made Friday, was the immediate support, below which, 34-DMA, placed around 18300, would be the important support to eye. We had also said that on the way up, 18668 was the immediate hurdle on the hourly chart.

 

Nifty, after touching a low of 18345 in the initial trade, rebounded to end at 18497.

 

18668 continues to be immediate hurdle on the hourly chart, upon crossover of which, 18887, the top made on 1st December, would be the bigger hurdle to eye; 34-DMA, which has moved up to 18310, is the important support.

 

For Banknifty, 44300 is the next upside target; 43200 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.