18887 IN SIGHT

 

18887 IN SIGHT

 

WORLD MARKETS

 

U.S. indices surged 1%-2.2% on Friday, on hopes that lawmakers will soon reach a deal to raise the U.S. debt ceiling.

 

The personal consumption expenditures index, Fed’s preferred inflation gauge, increased 0.4% last month and 4.7% from a year earlier.

 

U.S. 10-year treasury yield eased 1 bps to 3.81%. Dollar index was flat at 104.226. Gold rose 0.3% to $1946 per ounce.

 

Brent crude settled 0.9%, higher at $76.95 a barrel and WTI crude rose 1.2% to $72.67 a barrel.

 

European markets rose 0.7%-1.2%

 

Nasdaq notched its fifth straight weekly gain, rising 2.5%. S&P 500 rose 0.3% but Dow fell 1%. Dollar index rose 1%, extending winning streak to third

 

Brent and WTI both posted a second week of gains with Brent climbing 1.7%, while WTI rose 1.6%.

 

AT HOME

 

Benchmark indices surged 1% each and closed at the highest level after 14th December. Sensex settled at 62501, up 629 points while Nifty added 178 points to finish at 18499. Nifty mid-cap and small-cap indices rise 0.8% and 0.5% respectively. All the NSE sectoral indices ended higher, with Media index being the top gainer, up 2.2%, followed by 1.5% higher IT and FMCG indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 350 cr, 1185 cr and 1252 cr respectively. DIIs were net buyers to the tune of Rs 1841 cr.

 

Rupee appreciated 16 paise to end at 82.58/$.

 

For the week, Sensex and Nifty gained 1.2% and 1.6% respectively and closed at the highest level after the week ended 2nd December.

 

OUTLOOK

 

U.S President Joe Biden and congressional leaders reached a tentative deal to raise the debt ceiling over the weekend.

 

Today morning, Nikkei and Shanghai are up 1.4% and 0.4% respectively while Hang Seng is a tad lower. SGX Nifty is suggesting around 130 points higher start for our market.

 

In Friday's report we had said that 18202, the low made Thursday, was the immediate support while 18458, the top made previous week, continued to be immediate hurdle.

 

Nifty crossed 18458 hurdle and surged all the way to 18508 before closing at 18499 and is set to open above 18600 today.

 

18887, the record high made in December 2022, is the next major target to eye; 18350-18300 is the immediate support zone on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

44800-44900 is the next target area for Banknifty; 43400 is the immediate support on hourly chart, with the stop-loss of which, trading longs can be held on to.

 

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