19875 CONTINUES TO BE IMMEDIATE HURDLE; 19550 IMMEDIATE SUPPORT

 

19875 CONTINUES TO BE IMMEDIATE HURDLE; 19550 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.6%-1.1%, boosted by strong tech gains led by Microsoft and Nvidia. It was the fifth consecutive day of gains for the S&P 500 and the tech-heavy Nasdaq.

 

Microsoft shares rose 2% to reach a new 52-week high, after CEO Satya Nadella said former OpenAI chief Sam Altman will be joining the tech giant to lead a new AI research team. Chipmaker Nvidia

 also added 2.3% to close at an all-time high ahead of its earnings report.

 

The Conference Board’s October leading economic indicator showed a decline of 0.8%, slightly below the estimate of a 0.7% decrease and its 19th straight monthly fall.

 

U.S. 10-year treasury yield fell 1 bps to 4.424%. Dollar index fell 0.4% to 103.45, its lowest level in more than 2-months. Gold rose 0.3% to $1983 per ounce.

 

Brent crude contract for January rose 2.1% to settle at $82.32 a barrel, while WTI contract for December increased 2.2% to $77.60.

 

In Europe, FTSE and DAX fell 0.1% each while CAC rose 0.2%. U.K. retail inflation slowed to 4.6% in October from 6.7% in September. Euro zone inflation was confirmed at 2.9%, down from 4.3% the previous month.

 

AT HOME

 

Benchmark indices fell a fifth of a percent each, extending the losing streak to second straight session. Sensex settled at 65655, down 140 points while Nifty lost 38 points to finish at 19694. Nifty mid-cap index inched up 0.1%, extending the winning streak to 13th consecutive session while Small-cap index fell 0.1%, snapping a 6-session winning streak. Nifty Auto and Media indices fell 0.8% and 0.6% respectively, becoming top losers among the sectoral indices, while IT index was the top gainer, up 0.6%, followed by 0.1% higher PSU Bank and Healthcare indices.

 

FIIs net sold stocks and stock futures worth Rs 646 cr and 1122 cr respectively but net bought index futures worth Rs 27 cr. DIIs were net buyers to the tune of Rs 78 cr.

 

Rupee depreciated 7 paise to end at 83.34/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 1.2% and 0.6% respectively while Nikkei is marginally in the red. GIFT Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 19875 was the immediate hurdle while 19550 was the immediate support; Nifty fell to close at 19694.

 

19875, the top made last week, continues to be immediate hurdle, a crossover of which is required for a fresh upmove; 19550 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43263 and 42990, the 50% and 61.8% retracement levels of the recent upmove seen since 26th October, are the next downside levels to eye; 44064, the upper end of the gap created by gap-down opening on 17th November, is the immediate hurdle, above which, 44420, the top made last week, which coincided with 20-week moving average, would be bigger hurdle to eye.

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