18000 IS IMMEDIATE HURDLE; 17500-17450 IS THE SUPPORT ZONE

 

18000 IS IMMEDIATE HURDLE; 17500-17450 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

US indices gained 0.1%-1% with Nasdaq on the top, fueled by gains in Tesla shares.

 

The personal consumption expenditures price index, excluding energy and food, showed prices rose 4.4% Y-O-Y, in line with the estimate. Consumer spending dropped 0.2% last month, higher than the expected 0.1% dip. Data for November was revised lower to show spending slipping 0.1% instead of gaining 0.1% as previously reported.

 

Tesla rose 11% Friday, and 33% for the week after reporting record revenue. It marked the electric vehicle stock’s best weekly performance since May 2013.

 

US 10-year treasury yield were little changed at 3.505%. Dollar index inched up 0.1% to 101.92. Gold fell 0.1% to $1927 per ounce.

 

Brent futures settled down 81 cents, or 0.9%, at $86.66 per barrel and U.S. crude fell $1.33, or 1.6 %, to $79.68.

 

European markets ended marginally higher.

 

For the week, Nasdaq surged 4.3% and closed out its fourth week of gains. The S&P and Dow added 2.5% and 1.8% respectively.

 

AT HOME

 

Sensex and Nifty tumbled 1.45% and 1.6% respectively to close at the lowest level after 21st October, 2022. Sensex settled at 59330, down 874 points while Nifty lost 287 points to finish at 17604. Nifty mid-cap and small-cap indices fell 1.5% and 1.9% respectively. BSE Utilities and Power indices nosedived 7.3% and 6.8% respectively, becoming top losers among the sectoral indices while Auto and Healthcare indices were the top gainers, up 1% and 0.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 5978 cr, 3073 cr and 1303 cr respectively. DIIs were net buyers to the tune of Rs 4252 cr.

Rupee appreciated 7 paise to end at 81.52/$.

 

For the week, Sensex and Nifty fell 2.1% and 2.3% respectively.

 

OUTLOOK

 

Today morning, Shanghai and Nikkei are up 0.8% and 0.3% respectively while Hang Seng is down half a percent. SGX Nifty is suggesting around 50 points higher start for our market.

 

In Friday's report we had said that 17846, was the immediate support below which, 17761, the bottom made on 12th January, would be next downside level to eye. We had also advised holding on to short positions with the stop-loss of 18100.

 

Nifty plunged all the way to 17493 before closing at 17604.

 

17493 was the low made last week and 34-week moving average is placed around 17450. This makes 17500-17450 an important support area. If Nifty trades below this, 17300-17200 would be next support area; On the way up, 18000 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 39970, the 61.8% retracement level of the entire upmove seen after September 2022, is the next support, below which, 34-week moving average, placed around 39500, would be next downside level to eye; On the way up, 41417-41540, the gap created by Friday's gap-down opening, would be immediate hurdle, above which, 42000-42200 would be next resistance area.