NIFTY SET TO CHALLENGE IMMEDIATE RESISTANCE AREA

 

NIFTY SET TO CHALLENGE IMMEDIATE RESISTANCE AREA

 

WORLD MARKETS

 

After starting with big gains of 2-4% on the back of softer-than-expected inflation report, US indices gave away big chunk of these advances to end higher by 0.3%-1%.

 

CPI rose just 0.1% month-on-month and 7.1% y-o-y, as against expected rise of 0.3% and 7.3% respectively. Core CPI, which excludes volatile food and energy prices, rose 0.2% on the month and 6% on an annual basis, compared to respective estimates of 0.3% and 6.1%.

 

US 10-year treasury yield fell 11 bps to 3.505%. Dollar index plunged a percent to 104, it's lowest level in nearly six months. Gold jumped 1.7% to $1811 per ounce.

 

Brent crude climbed 3.5% to $80.68 per barrel, and WTI crude futures settled 3% higher at $75.39 per barrel.

 

European markets gained 0.8%-1.4%.

 

AT HOME

 

Benchmark indices gained six tenth of a percent, building on yesterday's rebound from lower levels. Sensex settled at 62533, up 402 points while Nifty added 110 points to finish at 18608. Nifty mid-cap and small-cap indices gained 0.5% and 0.4% respectively. Nifty PSU Bank index soared 3.8%, becoming top gainer among the sectoral indices, followed by 1.1% higher IT index. Realty index was the top loser, down 0.8%, followed by 0.2% lower Consumer Durables and FMCG indices.

 

FIIs net bought stocks and index futures worth Rs 620 cr and 557 cr respectively but net sold stock futures worth Rs 1674 cr. DIIs were net buyers to the tune of Rs 37 cr.

 

Rupee depreciated 28 paise to end at 82.81/$.

 

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.7% each while Shanghai is flat. SGX Nifty is suggesting nearly 100 points higher start for our market.

 

In yesterday's report we had said that 18668 continued to be immediate hurdle on the hourly chart while 34-DMA, placed around 18310, was the important support.

 

Nifty rose to touch a high of 18617 before closing at 18608. The benchmark is set to open near 18700 today.

 

A higher start today would take Nifty above the immediate hurdle of 18668. Upon sustained trading above this level (preferably a crossover of first-hour high), 18887, the top made on 1st December, would be the next target; 18345, the low made Monday, is the important immediate support.

 

For Banknifty, 44300-44350 is the next target area; 43360 is the immediate support, with the stop-loss of which, trading longs can be held on to.