TRAIL STOP-LOSS TO 21070

 

TRAIL STOP-LOSS TO 21070

 

WORLD MARKETS

 

Dow and Nasdaq rose 0.2% and 0.4% respectively while S & P 500 was little changed on Friday.

 

New York Fed President John Williams pushed back against the market’s rate cut expectations saying that “we aren’t really talking about rate cuts right now” at the Fed and it’s “premature” to speculate about them.

 

A New York Federal Reserve Bank manufacturing survey showed a third month of declines in new orders.

 

U.S. 10-year treasury yield fell 1 bps to 3.913%. Dollar index rose 0.6% to 102.59. Gold fell 0.8% to $2019 per ounce.

 

Brent futures settled down 0.1%, at $76.55 a barrel and WTI crude finished 0.2% lower at $71.43.

 

In Europe, FTSE fell 1%, DAX was flat while CAC rose 0.3%.  closely watched surveys on Friday showing that the downturn in euro zone business activity surprisingly deepened in December.

 

China posted its biggest industrial output expansion since February 2022 in November, though retail sales growth underwhelmed expectations.

 

For the week, U.S. indices gained 2.5%-2.9%, extending the winning streak to seventh straight week. U.S. 10-year treasury yields fell 32 bps to 3.914% for their worst week since March.

 

AT HOME

 

Sensex and Nifty climbed 1.4% and 1.3% respectively, repeating yesterday's mammoth upmove and hitting fresh record highs. Sensex settled at 71483, up 969 points while Nifty added 274 points to finish at 21456. Nifty mid-cap and small-cap indices gained 0.1% and 0.7% respectively, both hitting fresh record high as well. Nifty IT index soared 4.6%, becoming top gainer among the sectoral indices and posting it's biggest percentage gain since 14th September, 2020. PSU Bank index followed with 2.4% rise. Realty and FMCG indices were the top losers, down 0.7% and 0.3% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 9239 cr, 1451 cr and 3724 cr respectively. DIIs were net sellers to the tune of Rs 3077 cr.

 

India's November trade deficit fell to $20.58 bn vs $31.46 bn month-on-month and $22.06 bn Y-o-Y. Exports fell 2.8% y-o-y to $33.90 bn while imports fell 4.3% to $54.45 bn. Sensex and Nifty climbed 1.4% and 1.3% respectively, repeating yesterday's mammoth upmove and hitting fresh record highs.

 

Rupee appreciated 33 paise to end at 83/$.

 For the week, the Sensex and Nifty surged 2.3%, extending the winning streak to seventh consecutive week and hitting fresh record highs.

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 1.2% and 0.8% respectively while Shanghai is up 0.1%. GIFT Nifty is suggesting around 75 points lower start for our market.

 

In Friday's report we had said that 21550, around which a upper end of a rising channel formation is placed, was the next upside target to eye while 21000-20950 was the immediate support zone, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to touch a high of 21492 before closing at 21456 and is set to open below 21400 today.

 

21600, around which upper end of a rising channel formation made by adjoining tops and bottoms since June 2022 is placed, is the next upside target to eye; 21070 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Having crossed 48000 hurdle, 50000 is the next major target for Banknifty. 47400 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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