STAY SHORT WITH THE STOP-LOSS OF 18140

 

STAY SHORT WITH THE STOP-LOSS OF 18140

 

WORLD MARKETS

 

US indices fell 1%-1.5% as strong private jobs and jobless claims data pointed to further rate hikes ahead, a day before Friday’s highly anticipated employment report for December.

 

Data from ADP showed private payrolls rose 235,000 last month, much higher than expected 150,000. Separately, the number of Americans filing new claims for unemployment benefits dropped to a three-month low last week, while layoffs fell 43% in December.

 

Friday's nonfarm payroll data is expected to show an addition of 200,000 jobs last month, a deceleration from gains in the prior month. Average hourly earnings are predicted to have risen 0.4% in December for an annual increase of 5%.

 

US 10-year treasury yield rose 4 bps to 3.72%. Dollar index rose 0.8% to 105.15. Gold fell 1.2% to $1832.50 per ounce.

 

Brent crude rose 1.7% to $79.15 a barrel and WTI crude was up 1.8% at $74.13 a barrel.

 

In Europe, FTSE rose 0.6% but DAX and CAC fell 0.4% and 0.2% respectively.

 

AT HOME

 

After falling more than a percent from the opening top, Sensex and Nifty recouped nearly half of the losses in late noon rebound to end lower by 0.5% and 0.3% respectively. Sensex settled at 60353, down 304 points while Nifty lost 50 points to finish at 17992. Nifty mid-cap index rose half a percent while small-cap index was marginally in the green. Nifty FMCG and Oil & Gas indices gained 1.6% and 1.5% respectively, becoming top gainers among sectoral indices while Financial Services and Bank indices were the top losers, down 1% and 0.8% respectively.

 

FIIs net sold stocks worth Rs 1449 cr but net bought index futures and stock futures worth Rs 1479 cr and 544 cr respectively. DIIs were net sellers to the tune of Rs 194 cr.

 

Rupee appreciated 25 paise to end at 82.55/$.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent while Hang Seng and Shanghai are up 0.1% each. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that a breach of Wednesday's low, 18020, would confirm a "Sell" on the hourly chart, which can take Nifty close to 17774 bottom made last week.

 

Nifty broke 18020 and plunged all the way to 17892 before closing at 17992.

 

17892, the low made yesterday, which roughly coincided with 78.6% retracement level of the recent 17774-18265 upmove, is the immediate support, below which, 17774, the bottom made last week, would be the next downside level to eye; 18140 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 42300, the low made yesterday, is the immeidate support, upon breach of which, 41570, the low made made last week, would be next downside level to eye; 43100 is immediate hurdle.