TRAIL STOP-LOSS TO 18200

 

TRAIL STOP-LOSS TO 18200

 

WORLD MARKETS

 

US indices rose 0.2%-0.6% on Friday.

 

Core personal consumption expenditures price index, the Federal Reserve’s preferred gauge of inflation, climbed 4.7% y-o-y in November, slightly topping 4.6% estimate. Month over month, the index advanced 0.2%, matching expectations.

 

US 10-year treasury yield rose 7 bps to 3.751%. Dollar index fell 0.1% to 104.32. Gold rose 0.3% to $1798 per ounce.

 

Oil rose after Russia said it could cut crude output in response to the G7 price cap on Russian exports. Brent crude rose 2.7%, to $83.20 a barrel, while WTI crude rose 2.5% to $79.43 a barrel.

 

In Europe, DAX rose 0.2%, FTSE was little changed while CAC fell 0.2%

 

Data earlier showed core consumer prices in Japan rose 3.7% in November on an annualized basis, marking the fastest pace since December 1981.

 

For the week, Dow rose 0.9% but S & P 500 and Nasdaq fell 0.2% and 0.9%, extending the losing streak to third straight week.

 

AT HOME

 

Sensex and Nifty nosedived 1.6% and 1.8% respectively, extending the losing streak to fourth straight day, suffering the worst cut since late September and closing at the lowest level after late October. Sensex settled at 59845, down 980 points while Nifty lost 320 points to finish at 17806. Nifty mid-cap and small-cap indices collapsed 3.8% and 4.7% respectively. All the NSE sectoral indices ended in red, with PSU Bank and Media indices leading the losses, down 6.1% and 5% respectively.

 

FIIs net sold stocks and index futures worth Rs 707 cr and 551 cr respectively but net bought stock futures worth Rs 825 cr. DIIs were net buyers to the tune of Rs 3399 cr.

 

Rupee depreciated 10 paise to end at 82.86/$.

 

OUTLOOK

 

Today morning, Hang Seng is shut while Nikkei and Shanghai are up 0.4% and 0.2% respectively. SGX Nifty is trading around 18000, suggesting nearly 135 points higher start when compared to Friday's close of Nifty futures.

 

In Friday's report we had said that 18068, the low made Thursday, was the immediate support, below which, 17900-17950 would be next support area. We had also advised holding on the short positions with the stop-loss of 18350.

 

Nifty plunged all the way to 17779 before closing at 17806 and is set to open near 17900 today.

 

Upon breach of Friday's low. i.e. 17779, next support to watch out for Nifty would be 17565, which is the 61.8% retracement level of the 16747-18887 upmove seen since September bottom; On the way up, 18200 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknfity, 40770 followed by 39970, the 50% and 61.8% retracement levels of the upmove seen since September, are the next downside levels to eye; 42800 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.