20950 IS NEXT SUPPORT; 21350-21400 IS THE RESISTANCE ZONE

 

20950 IS NEXT SUPPORT; 21350-21400 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

Dow dipped 1.3% while S & P 500 and Nasdaq nosedived 1.5% each, with the Dow and Nasdaq snapping a 9-day winning streak and suffering worst cut since September. S & P 500 had it's worst day since September.

 

U.S. consumer confidence increased more than expected in December. November existing home sales was greater than expected.

 

U.S. 10-year treasury yield fell 8 bps to 3.851%. Dollar index inched up 0.3% to 102.40. Gold fell 0.4% to $2032 per ounce.

 

U.S. crude rose 0.4% to $74.22 a barrel, while Brent gained 0.6% to settle at $79.70 a barrel.

 

In Europe, FTSE and CAC rose 1% and 0.1% respectively while DAX was marginally in the red. British inflation fell in November to its lowest rate in over two years, prompting markets to fully price in a BoE rate cut by May 2024 and assign a nearly 50% chance of a cut by March.

 

AT HOME

 

Sensex and Nifty tumbled 1.3% and 1.4% respectively, posting worst percentage cut since 26th October and 13th March respectively. Sensex settled at 70506, down 930 points while Nifty lost 303 points to finish at 21150. Nifty mid-cap and small-cap indices nosedived 3.3% and 3.6% respectively, suffering worst cut since 23rd December 2022 and 12th September 2023 respectively. All the NSE sectoral indices ended lower, with Media and PSU Bank indices being the top losers, down 5.1% and 4% respectively.

 

FIIs net sold stocks worth Rs 1322 cr but net bought index futures and stock futures worth Rs 1639 cr and 6509 cr respectively. DIIs were net buyers to the tune of Rs 4754 cr.

 

Rupee appreciated 1 paise to end at 83.17/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-1.6% and GIFT Nifty is suggesting a modestly lower start for our market.

 

In yesterday's report we had said that 21600 continued to be upside level to eye for Nifty while 21250 was the immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 21593, reversed and plunged all the way to 21087 before closing at 21150.

 

20950, the lower end of the gap created by gap-up opening last Thursday, is the next downside level to eye; 21400-21350 is the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 46900, 46500 are next supports; 47800-47850 is the immediate resistance zone.

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