17565 BELOW 17761; 18000-18050 IS THE IMMEDIATE RESISTACE ZONE

 

17565 BELOW 17761; 18000-18050 IS THE IMMEDIATE RESISTACE ZONE

 

WORLD MARKETS

 

Dow and Nasdaq rose 0.6% each while S & P 500 gained 0.3% after the U.S. consumer price index showed inflation cooled in December.

 

CPI fell 0.1% in December, marking the largest month-over-month decrease since April 2020. CPI rose 6.5% y-o-y, in line with expectations, after a 7.1% rise last month. Core CPI rose 0.3% over previous month and 5.7% y-o-y, also meeting expectations.

 

US 10-year treasury yield fell 10 bps to 3.445%. Dollar index plunged 1% to 102.24, it's lowest level in 8-months. Gold surged 1.1% to $1897 per ounce.

 

Brent as well as WTI crude rose 1.3% each to settle at $84.03 and $78.39 a barrel respectively.

 

In Europe, FTSE rose 0.9% while DAX and CAC gained 0.7% each.

 

AT HOME

 

After falling three fourth of a percent, benchmark indices rebounded in late noon trade to end lower by a fifth of a percent, extending the losing streak to third straight day. Sensex settled at 59958, down 147 points while Nifty lost 37 points to finish at 17858. Nifty mid-cap index fell 0.3% while small-cap index ended flat. BSE Oil & Gas and Energy indices slipped 1% each, becoming top losers among sectoral indices while Capital Goods and Industrials indices were the top gainers, up 0.8% and 0.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1663 cr, 556 cr and 1416 cr respectively. DIIs were net buyers to the tune of Rs 2128 cr.

 

Rupee appreciated 3 paise to end at 81.55/$.

 

India's December CPI fell to a 12-month low of 5.72% from 5.88% in the previous month. November IIP rose to a 5-month high of 7.1%, after contracting 4% in October.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up a third of a percent each while Nikkei is down 1.2%. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 17795, the low made last week, continued to be next support for Nifty while 18252, the top made last week, continued to be important hurdle.

 

Nifty plunged to 17761 before closing at 17858.

 

17761, the low made yesterday, which roughly coincided with 17774 bottom made in December, is the immediate support, below which, 17565, the 61.8% retracement level of the 16747-18887 upmove, would be next downside level to eye; 17950-18000 is the immediate resistance zone.

 

For Banknifty, 41569, the bottom made in December, is the next support; 42700 is the immediate resistance.

 

Wipro will report its quarterly earnings today.