18400 CONTINUES TO BE UPSIDE LEVEL TO EYE; 17967 CONTINUES TO BE IMMEDAITE SUPPORT

 

18400 CONTINUES TO BE UPSIDE LEVEL TO EYE; 17967 CONTINUES TO BE IMMEDAITE SUPPORT

 

WORLD MARKETS

 

On Friday, after falling between 1-1.5%, a late surge helped US indices trim the losses to just 0.1%-0.2% on the last session of the year.

 

US 10-year treasury yield rose 6 bps to 3.88%. Dollar index fell half a percent to 103.49. Gold rose half a percent to $1823 per ounce.

 

Brent crude rose 3% to $85.91 a barrel while WTI crude rose 2.4% to $80.26.

 

European markets fell 0.8%-1.5% on Friday.

 

For the week, US indices fell 0.2%-0.6%. European markets eased 0.1%-0.5%. In Asia, Nikkei fell 0.25% but Hang Seng and Shanghai rose 1.5% each while Nifty rose 1.7%.

 

For the year, most of the world markets ended lower with US indices falling the most since 2008. Dow fell 8.8% while S & P 500 and Nasdaq nosedived 19.4% and 33.1% respectively, snapping 3-year winning streak. In Europe, FTSE inched up 1.2% but CAC and DAX fell 9.5% and 12.5% respectively. In Asia, Nifty rose 4.3% but Nikkei, Hang Seng and Shanghai fell 9.4%, 15.5% and 15.1% respectively.

 

For the year, US 10-year treasury yield surged 156% or 237 bps. Dollar index surged 8.2% for its best performance in seven years. Gold was down 0.4%. For the year, Brent gained 10.4% and WTI rose 6.7%.

 

AT HOME

 

After starting 0.4% higher, benchmark indices saw a reversal of these gains through the session to end lower by half a percent each. Sensex settled at 60840, down 293 points while Nifty lost 85 points to finish at 18105. Nifty mid-cap and small-cap indices however gained 0.5% and 0.8% respectively. Nifty PSU Bank and Realty indices climbed 1.5% and 1% respectively, becoming top gainers among the sectoral indices while FMCG index was the top loser, down 0.8%, followed by 0.6% lower Bank and Financial Services indices.

 

FIIs net sold stocks and index futures worth Rs 2951 cr and 1310 cr respectively but net bought stock futures worth Rs 394 cr. DIIs were net buyers to the tune of Rs 2266 cr.

 

Rupee appreciated 8 paise to end at 82.72/$.

 

For the week, Sensex and Nifty gained 1.7% each, snapping a 3-week losing streak. For the calendar 2022, Sensex and Nifty gained 4.4% and 4.3% respectively, marking the seventh straight positive year.

 

OUTLOOK

 

Most of the Asian markets are shut today. SGX Nifty is suggesting around 25 points lower start for our market.

 

In Friday's report we had said that 34-DMA, placed around 18400, continued to be next upside target/resistance while 17967, the low made Tuesday, continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 18265, slipped to end at 18105.

 

34-DMA, placed around 18400, continues to be next upside target/resistance to eye; 17967 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

43600, the 78.6% retracement level of the recent 44151-41569 fall, is the next upside target, above which, 44151, the top made in Mid-December, would be the next level to eye. 42400 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.