NIFTY RESISTED AT 19875 YET AGAIN; 19600-19550 CONTINUES TO BE SUPPORT AREA

 

NIFTY RESISTED AT 19875 YET AGAIN; 19600-19550 CONTINUES TO BE SUPPORT AREA

 

WORLD MARKETS

 

U.S. markets were shut yesterday for Thanksgiving Holiday.

 

Main European markets gained 0.2% each. Preliminary PMI data from the euro zone for November showed employment fell for the first time in nearly three years. Business activity continued to decline, though the rate of contraction slowed in output and new business.

 

Dollar index fell 0.1% to 103.75. Gold inched up 0.1% to $1992 per ounce.

 

Brent futures fell 0.7% to $81.42 a barrel while WTI crude settled unchanged at $77.10.

 

AT HOME

 

Benchmark indices ended flat after giving away modest opening gains through the session. Sensex settled at 66017, down 5 points while Nifty lost 10 points to finish at 19802. Nifty mid-cap index too ended flat while small-cap index rose 0.7%, snapping a 3-session losing streak. Nifty Pharma and Healthcare indices tumbled 1.6% and 1.4% respectively, becoming top losers among the sectoral indices while Realty and Oil & Gas indices were the top gainers, up 1% and 0.9% respectively.

 

FIIs net bought stocks and stock futures worth rs 256 cr and 936 cr respectively but net sold index futures worth Rs 554 cr. DIIs were net buyers to the tune of Rs 457 cr.

 

Rupee depreciated 2 paise to end at 83.34/$.

 

OUTLOOK

 

Core inflation in Japan rose to 2.9% in October, higher than the 2.8% seen in September. The headline inflation rose to 3.3% from 3%.

 

Today morning, Nikkei is up a percent while Hang Seng and Shanghai are down 1.2% and 0.2% respectively. GIFT Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 19875, the top made last week, continued to be immediate hurdle, a crossover of which was required for a fresh upmove.

 

Nifty, after touching a high of 19875, reversed to end at 19802.

 

19875, the top made last week, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 20222, the top made in September, would be next major target to eye. 19600-19550 is the immediate support area on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43230, the low made Wednesday, is the immediate support, upon breach of which, 43000 and 42600, the 61.8% and 78.6% retracement levels of the recent upmove seen since 26th October, would be next downside levels to eye; 43800 is the immediate hurdle.

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