STAY LONG WITH THE STOP-LOSS OF 18560

 

STAY LONG WITH THE STOP-LOSS OF 18560

 

WORLD MARKETS

 

After starting with cuts of 1%-1.5% on the back of hotter-than-anticipated jobs data, US indices recouped losses to close with modest changes. Dow in fact ended 0.1% higher while S & P 500 and Nasdaq finished 0.1% and 0.2% down respectively.

 

Nonfarm payrolls increased 263,000 for the month while the unemployment rate was 3.7% as against the expectation of 200,000 on the payrolls number and 3.7% for the jobless rate. Average hourly earnings jumped 0.6% for the month, double the estimate. Wages were up 5.1% y-o-y, also well above the 4.6% expectation.

 

US 10-year treasury yield, after hitting an intraday high of 3.638%, eased to end 2 bps lower at 3.488%. Dollar index end 0.2% lower at 104.51, having touched a high of 105.58 earlier in the session. Gold fell 0.3% to $1797 per ounce.

 

Oil fell ahead of a meeting of OPEC and its allies (OPEC+) on Sunday and an EU ban on Russian crude on Monday. Brent as well as WTI crude futures settled down 1.5% each at $85.57 and $79.98 per barrel respectively.

 

In Europe, FTSE was little changed, DAX gained 0.3% while CAC fell 0.2%.

 

For the week, US indices gained 0.2%-2.1% with Nasdaq on the top. In Europe, FTSE and CAC rose 0.9% and 0.4% respectively while DAX ended 0.1% lower. In Asia, Hang Seng surged nearly 6%, Shanghai and Nifty were up 1.7% and 1% respectively but Nikkei tumbled 2.1%.

 

AT HOME

 

Benchmark indices fell nearly two-third of a percent, snapping and 8-day winning streak. Sensex settled at 62868, down 415 points while Nifty lost 116 points to finish at 18696. Nifty mid-cap and small-cap indices however gained 0.9% and 0.6% respectively, extending the winning streak to third straight day. Nifty Auto and Financial Services indices were the top losers among sectoral indices, down 1.1% and 0.6% respectively while Media and Realty indices were the top gainers, up 1.2% and 0.9% respectively.

 

FIIs net bought stocks worth Rs 215 cr but net sold index futures and stock futures worth Rs 3918 cr and 2044 cr respectively. DIIs were net buyers to the tune of Rs 712 cr.

 

Rupee depreciated 10 paise to end at 81.32/$.

 

For the week, Sensex and Nifty gained 0.9% and 1% respectively, marking the sixth positive close in last seven weeks and hit a fresh record high.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 3% and 1% respectively while Nikkei is marginally in the green. SGX Nifty is suggesting around 40 points higher start for our market.

 

In Friday's report we had said that 19150-19200 continued to be next upside level to eye while immediate support on the hourly chart had moved up to 18560, with the stop-loss of which, trading longs could be held on to.

 

Nifty fell to close at 18696.

 

Nifty has been trading in a rising channel formation since early October. Once 18887, the top made last week is taken out, the upper end of this rising channel, placed around 19200, would be the next target to eye; On the way down, the lower end of this rising channel lands support around 18560, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44000-44100 is the next target area on the way up. 42900-42800 is the immediate support area below which, 20-DMA, placed around 42500, would be next support. Meanwhile, trading longs can be held on to with the stop-loss of 42800.