21285 IS IMMEDIATE SUPPORT; 21850 IMMEDIATE HURDLE

 

21285 IS IMMEDIATE SUPPORT; 21850 IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices rose 0.5%-1.4% with the Dow snapping a 3-day losing streak and Nasdaq on the top as Apple shares surged.

 

Apple shares advanced 3.3% after Bank of America upgraded the stock to buy. Semiconductor stocks surged after Taiwan Semiconductor Manufacturing Co, the world’s largest chipmaker, posted an earnings and revenue beat for the fourth quarter.

 

Initial Jobless Claims for the week ended Jan. 13 came in at 187,000, down 16000 from the previous period and stronger than the estimated 208,000 figure. Single-family homebuilding took a breather in December after a recent stretch of gains.

 

U.S. Congress passed a bill to avert a partial government shutdown and keep the federal government funded through March 1 and March 8.

 

U.S. 10-year treasury yield rose 4 bps to 4.146%. Dollar index was little changed at 103.42. Gold rose 0.8% to $2023 per ounce.

 

Brent crude futures gained 1.6% to $79.13 a barrel and WTI futures rose 2.1% to $74.10.

 

European markets gained between 0.2%-1.1%. The accounts from the European Central Bank’s December meeting showed policymakers appeared fairly confident that inflation was heading back to target, but saw risks that still warranted steady policy and high borrowing costs.

 

AT HOME

 

After falling more than a percent, benchmark indices recouped more than half of the losses to end lower by about half a percent. Sensex settled at 71186, down 313 points while Nifty lost 110 points to finish at 21462. This was the third consecutive negative session for both the indices. Nifty mid-cap and small-cap indices fell 0.1% and 0.2% respectively. Nifty Consumer Durables and Financial Services indices were the top losers among the sectoral indices, down 1.7% and 1% respectively while Pharma and PSU Bank indices were the top gainers, up 1% and 0.8% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 9902 cr, 2508 cr and 1873 cr respectively. DIIs were net buyers to the tune of Rs 5977 cr.

 

Rupee appreciated 2 paise to end at 83.12/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.6% and 0.6% respectively while Shanghai is off 0.2%. GIFT Nifty is suggesting a modestly higher start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 21350, was the important support to eye while 21850 was the immediate hurdle.

 

Nifty, after touching a low of 21285, rebounded to end at 21462.

 

21285, the bottom made yesterday, is the important immediate support to eye; 21850 continues to be immediate hurdle.

 

For Banknifty, 45430, the low made yesterday, which roughly coincided with 20-week moving average, is the immediate support, upon breach of which, 34-week moving average, placed around 45000, would be next downside level to eye; 47500 is immediate hurdle.

 

Reliance Industries, HUL and Ultratech Cement will report their quarterly earnings today.

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