NIFTY ACHIEVES MAJOR DOWNSIDE TARGETS

 

NIFTY ACHIEVES MAJOR DOWNSIDE TARGETS

 

WORLD MARKETS

 

US indices nosedived 1%-2.2%, as stronger than expected economic data raised concerns of further monetary tightening. Surging Covid Cases in China also weighed on the sentiment.

 

Initial weekly jobless claims rose less than expected for the week ending Dec. 17, rising by 2,000 to 216,000. GDP data showed the economy rebounded faster in the third quarter, rising 3.2% against the previously estimated 2.9%.

 

US 10-year treasury yield rose 2 bps to 3.682%. Dollar index inched up 0.2% to 104.39. Gold tumbled 1.2% to $1792 per ounce.

 

Brent crude futures settled 1.5% lower at $80.98 while WTI crude futures fell 1% to $77.49 a barrel.

 

European markets fell 0.4%-1.3%. U.K.'s third quarter GDP fell 0.3%.

 

AT HOME

 

After rising six tenth of a percent in the initial trade, benchmark indices a percent from the top to end lower by four tenth of a percent and closed at the lowest level after 10th November 2022. Sensex settled at 60825, down 241 points while Nifty lost 71 points to finish at 18127. Nifty mid-cap and small-cap indices tumbled 0.9% and 1.6% respectively. Except a flat IT index, all the NSE sectoral indices ended in red, with Realty and PSU Bank indices being the top loser, down 1.4% and 1.2% respectively.

 

FIIs net bought stocks and stock futures worth Rs 929 cr and 738 cr respectively but net sold index futures worth Rs 651 cr. DIIs were net buyers to the tune of Rs 2207 cr.

 

Rupee appreciated 5 paise to end at 82.76/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-1.1% and SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 18133, the bottom made on 21st November, continued to be next support, below which, 18000-18050 would be next support area.

 

Nifty broke 18133 and plunged all the way to 18068 before closing at 18127.

 

18068, the low made yesterday, also coincided with the trendline adjoining bottoms made in June and September and hence is the immediate support to eye. Below yesterday's low, 17900-17950 would be next support area; 18300-18350 is the immediate resistance area, with the stop-loss of which, trading shorts can be held on to.

 

For Banknfity, 42000-41900 is the next support area; 43100-43200 is the immediate resistance zone.