STAY LONG WITH THE STOP-LOSS OF 17950

 

STAY LONG WITH THE STOP-LOSS OF 17950

 

WORLD MARKETS

 

US indices plunged 1.2%-1.8% with Nasdaq snapping 7-day winning streak and S & P 500 suffering worst cut since December 15 as disappointing retail sales and a weaker-than-expected producer price index reading ignited recession fears. Also, key members of the Federal Reserve signaled their intent to keep pushing interest rates higher to combat inflation.

 

US wholesale prices fell 0.5% for the month, much more than expectation of a 0.1% decline. Retail sales fell 1.1% in December, following an upwardly revised 1% drop in November.

 

US 10-year treasury yield plunged 18 bps to 3.372%. Dollar index, after wild intraday swings, was little changed at 102.407. Gold fell quarter of a percent to $1904  per ounce. The Japanese yen sank after the Bank of Japan maintained ultra-low interest rates.

 

Brent futures fell 1.1% to $84.98 a barrel and WTI crude fell 0.9% to $79.48.

 

In Europe, FTSE fell 0.3%, DAX was marginally lower while CAC inched up 0.1%.

 

AT HOME

 

Benchmark indices rose six tenth of a percent each, extending the winning streak to second straight day and closing at the highest level after 3rd January. Sensex settled at 61045, up 390 points while Nifty added 112 points to finish at 18165. Nifty mid-cap and small-cap indices rose 0.5% and 0.1% respectively. BSE Metal index surged 2.4%, becoming top gainer among the sectoral indices, followed by 1.5% higher Capital Goods index. Utilities index was the top loser, down 0.4%, followed by 0.1% lower Realty and Power indices.

 

FIIs net sold stocks worth Rs 319 cr but net bought index futures and stock futures worth Rs 1927 cr and 735 cr respectively. DIIs were net buyers to the tune of Rs 1226 cr.

 

Rupee appreciated 52 paise to end at 81.24/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-1.2% and SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 18265, the top made on 30th December, was the next upside level to eye while 17853, the low made Monday, is the immediate support.

 

Nifty rose to touch a high of 18183 before closing at 18165.

 

18265, the top made on 30th December, continues to be next upside level to eye; Immediate support on the hourly chart has moved up to 17950, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 42715 continues to be immediate hurdle, upon crossover of which, 43578, the top made on 4th January, would be the next upside target to eye; 41569, the bottom made in December, is the important support.

 

Asian Paints and HUL will report their quarterly earnings today.