TRAIL STOP-LOSS TO 18560

 

TRAIL STOP-LOSS TO 18560

 

WORLD MARKETS

 

US indices soared 2.2%-4.4% after Federal Reserve Chairman Jerome Powell said that the U.S. central bank could scale back the pace of its interest rate hikes “as soon as December.

 

In a speech at the Brookings Institution, Powell said, “It makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down,”, and added,  “The time for moderating the pace of rate increases may come as soon as the December meeting.”

 

Data from ADP showed U.S. private payrolls increased far less than expected in November. US GDP grew at a 2.9% annualized rate in the third quarter, higher than the 2.6% figure reported in the first estimate.

 

US 10-year treasury yield fell 14 bps to 3.611%. Dollar index slipped 0.9% to 105.87. Gold gained 1% to $1768 per ounce.

 

Brent crude futures settled up 2.8% to $85.43 per barrel while WTI crude futures rose 3%, to $80.55.

 

European markets gained 0.3%-1%.  Euro zone inflation dropped by more than expected in November.

 

Data earlier showed China’s November factory activity fell short of expectations, dropping to the lowest reading since April.

 

For the month, US indices gained 4.4%-5.7%.

 

AT HOME

 

After trading in a narrow range for better part of the day, benchmark indices saw a vertical upmove in last half an hour to end higher by seven tenth of a percent. Sensex settled at 63099, up 417 points while Nifty added 140 points to finish at 18758. This was the seventh straight up day and fresh record high for both these indices. Nifty mid-cap and small-cap indices rose 1.1% and 0.6% respectively. Except 1.4% lower PSU Bank index, all the NSE sectoral indices ended higher, with Metal and Auto indices on the top, up 1.8% and 1.7% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 9010 cr, 1109 cr and 912 cr respectively. DIIs were net sellers to the tune of Rs 4056 cr.

 

Rupee appreciated 30 paise to end at 81.42/$.

 

For the month, Sensex and Nifty gained 3.9% and 4.1% respectively.

 

India's GDP growth slowed to 6.3% in second quarter. October eight core industries growth came in at 0.1% Vs 7.8% in the previous month. April-October fiscal deficit stood at Rs 7.58 lk cr Vs Rs. 5.47 lk cr YoY.  This is 45.6% of the FY23 target of Rs 16.61 lk cr.

 

OUTLOOK

 

Today morning, Hang Seng is up 2% while Nikkei and Shanghai are up 1% each. SGX Nifty is suggesting nearly 100 points gap-up start for our market.

 

In yesterday's report we had said that 18750-18800 was the next target area for Nifty while immediate support on the horly chart had moved up to 18450, with the stop-loss of which, trading longs could be held on to.

 

Nifty soared to touch a high of 18816 before closing at 18758.

 

19150, around which a rising trendline adjoining tops made on 6th October and 1st November is placed, is the next upside target to eye; Immediate support on the hourly chart has moved up to 18560, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43900-44000 is the next target area while 42600 continues to be immediate support on hourly chart, with the stop-loss of which, trading longs can be held on to.