21550 NEXT; 21000 IS IMMEDIATE SUPPORT

 

21550 NEXT; 21000 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.2%-0.4% as the 10-year Treasury tumbled below 4% and retail sales surprised on the upside.

 

Retail sales rose 0.3% in November from October, when sales fell 0.2%. Sales were expected to decline again.

 

U.S. 10-year treasury yield fell 10 bps to 3.923%. Dollar index tumbled 0.9% to 101.95. Gold rose 0.4% to $2036 per ounce.

 

The WTI contract for January gained 3% to settle at $71.58 a barrel, while the Brent contract for February rose 3.2% to $76.61 a barrel.

 

The European Central Bank held interest rates steady for the second meeting in a row, as it revised its growth forecasts lower. The Bank of England also kept its main interest rate unchanged at 5.25% and said monetary policy is “likely to need to be restrictive for an extended period of time.”

 

In Europe, FTSE and CAC gained 1.3% and 0.6% respectively while DAX fell 0.1%.

 

AT HOME

 

Sensex and Nifty surged 1.3% and 1.2% respectively to hit fresh record highs. Sensex settled at 70514, up 929 points while Nifty added 256 points to finish at 21182. Nifty mid-cap and small-cap indices climbed 1.3% and 0.8% respectively, also hitting fresh record highs. Nifty Realty and IT indices were the top gainers among the sectoral indices, up 3.9% and 3.5% respectively while Media index was the top loser, down 0.4%, followed by 0.1% lower Consumer Durables and Healthcare indices.

 

FIIs net bought stocks worth Rs 3570 cr but net sold index futures and stock futures worth Rs 340 cr and 1816 cr respectively. DIIs were net buyers to the tune of Rs 553 cr.

 

Rupee appreciated 7 paise to end at 83.33/$.

 

India's November WPI inflation came in at 0.26% as against -0.52% in the previous month. Core WPI stood at negative 0.4% Vs -1.0%.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 2% and 1.3% respectively while Shanghai is little changed. GIFT Nifty is suggesting nearly 100 points higher start for our market.

 

In yesterday's report we had said that 21200 was the next upside level to eye for Nifty.

 

Nifty touched a high of 21210 before closing at 21182. The benchmark is set to open above 21250 today.

 

21550, around which a upper end of a rising channel formation is placed, is the next upside target to eye; 21000-20950 is the immediate support zone, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, above 48000, 50000 would be next major target to eye; 47150 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

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