TRAIL STOP-LOSS TO 19900

 

TRAIL STOP-LOSS TO 19900

 

WORLD MARKETS

 

Dow surged 1.5% to a new high for the year on the back of more cooling inflation data and strong Salesforce earnings. S & P 500 rose 0.4% while Nasdaq fell 0.2%.

 

The personal consumption expenditures price index — the Federal Reserve’s favorite inflation gauge — rose 3.5% y-o-y, a slowing from a 3.7% annual gain in prior month. Jobless claims increased 7,000 to a seasonally-adjusted 218,000 for the week ended Nov. 25. Economists had forecast 226,000 claims.

 

Salesforce surged 9.4% on the back of better-than-expected earnings and revenue for the fiscal third quarter.

 

U.S. 10-year treasury yield rose 7 bps to 4.328%. Dollar index jumped 0.7% to 103.52. Gold fell 0.4% to $2036 per ounce.

 

WTI January contract fell 2.4% to $75.96 a barrel, while the Brent contract for January lost 0.2% to settle at $82.83 a barrel. OPEC+ released a statement that did not formally endorse production cuts, but individual countries announced voluntary reductions totaling 2.2 million barrels per day for the first quarter of 2024.

 

European markets gained 0.3%-0.6%. Eurozone inflation dropped to 2.4% in November from 2.9% in October, well below expectations for a fall to 2.7%.

 

For the month, Dow surged 8.9%, posting it's best performance since October 2022. The S&P 500 and Nasdaq climbed 8.9% and 10.7% respectively. Both had their best monthly performance since July 2022. All three indices broke their three-month losing streak.

 

AT HOME

 

After dipping four tenth of a percent in first hour, benchmark indices recovered all the losses and some more through the session to end marginally in the green. Sensex settled at 66988, up 86 points while Nifty added 36 points to finish at 20133. Nifty mid-cap and small-cap indices gained 0.7% and 1.1% respectively, both hitting fresh record highs and the former extending the winning streak to 20th consecutive day. Nifty Healthcare and Pharma indices surged 1.8% and 1.6% respectively, becoming top sectoral indices while Bank and IT indices were the top losers, down 0.2% and 0.1% respectively.

 

FIIs net bought stocks and index futures worth Rs 8148 cr and 170 cr respectively but net sold stock futures worth Rs 938 cr. DIIs were net sellers to the tune of Rs 780 cr.

 

Rupee depreciated 7 paise to end at 83.40/$.

 

For the month, Sensex and Nifty gained 4.9% and 5.5% respectively and posted highest ever monthly close.

 

India's Q2 GDP grew at an impressive 7.6%, beating estimate of 7% and RBI's projection of 6.5%. Manufacturing grew at an impressive 14% even as services growth was tepid. Core sector output rose 12.1% in October compared with 9.2% in September. Fiscal deficit came in at 45% of the annual target in the first seven months of FY24, marginally lower than last year.

 

Exit polls predicted a tight race in MP and Rajasthan with majority of them giving slight edge to BJP over Congress. Most polls predicted Congress victory in Chhattisgarh and Telangana.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of up to half a percent but GIFT Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 20222, the top made in September, continued to be next upside target to eye while 19850 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty after touching a high of 20158, closed at 20133.

 

20222, the top made in September, continues to be next upside target to eye; 19900 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, upon sustained crossover of 44700, 45400 would be next upside target; 43800 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

Auto companies will report their November sales figures today.

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