STAY LONG WITH THE STOP-LOSS OF 18560

 

STAY LONG WITH THE STOP-LOSS OF 18560

 

WORLD MARKETS

 

US indices fell 1.4%-1.9% after data showed that U.S. services industry activity unexpectedly picked up in November, prompting speculation the Fed may lift interest rates more than recently projected.

 

ISM non-manufacturing PMI increased to 56.5 last month from 54.4 in October as against the expectation of a fall to 53.1.

 

US 10-year treasury yield rose 9 bps to 3.575%. Dollar index rose 0.75% to 105.29. Gold fell 1.6% to $1768 per ounce.

 

Brent crude futures were fell 3% to $83 a barrel while WTI fell 3.3% to $77.32 a barrel.

 

In Europe, FTSE inched up 0.2% while DAX and CAC fell 0.6% and 0.7% respectively.

 

AT HOME

 

After falling nearly half a percent in first hour, benchmark indices recouped all the losses through the session to end near flat line. Sensex settled at 62834, donw 34 points while Nifty added 5 points to finish at 18701. Nifty mid-cap and small-cap indices gained 0.25% and 0.43% respectively. Nifty Metal and PSU Bank indices climbed 1.9% and 1.2% respectively, becoming top gainers among sectoral indices while IT index was the top loser, down half a percent, followed by 0.4% lower Healthcare and Oil & Gas indices.

 

FIIs net sold stocks and stock futures worth Rs 1139 cr and 866 cr respectively but net bought index futures worth Rs 240 cr. DIIs were net buyers to the tune of Rs 2608 cr.

 

Rupee depreciated 47 paise to end at 81.79/$.

 

OUTLOOK

 

Today morning, Nikkei is flat while Hang Seng and Shanghai are down 0.9% and 0.3% respectively. SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that once 18887, the top made last week, is taken out, 19200, would be the next target to eye; We had also advised holding on to longs with the stop-loss of 18560.

 

Nifty, after touching a low of 18591, rebounded to end at 18701. The benchmark is set to open near 18650 today.

 

18887, the top made last week, continues to be immediate hurdle, upon crossover of which, 19200 would be next upside target to eye; 18560 continues to be immediate support on the hourly chart, 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.