21300 BELOW 21555; 21834 IS IMMEDIATE HURDLE

 

21300 BELOW 21555; 21834 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow inched up 0.1% while S & P 500 and Nasdaq fell 0.6% and 1.6% respectively on the first trading day of 2024.

 

Apple shares slid more than 3% after Barclays downgraded the company to an underweight rating. On the other hand, the Dow rose as stocks like Johnson & Johnson and Merck strengthened.

 

U.S. 10-year treasury yield rose 7 bps to 3.935%. Dollar index jumped 0.8% to 102.22 for its biggest daily percentage gain since Mar. 15, 2023. Euro slid 0.9% after data showed euro zone factory activity contracted in December for an 18th straight month. Gold fell 0.2% to $2059 per ounce.

 

WTI crude for February lost 1.8% to settle at $70.38 a barrel while the brent contract for March shed 1.5% to trade at $75.89. Crude prices had jumped more than 2% earlier in the trading session after Iran deployed a destroyer to the Red Sea without elaborating on the details of the warship’s mission.

 

In Europe, FTSE and CAC fell 0.2% each while DAX inched up 0.1%.

 

AT HOME

 

After falling nearly nine tenth of a percent, Sensex and Nifty recouped nearly half of the losses to end lower by 0.5% and 0.4% respectively. Sensex settled at 781892, down 379 points while Nifty lost 76 points to finish at 21665. Nifty mid-cap and small-cap indices fell a fifth of a percent each, snapping a 7-session winning streak.  Nifty Pharma and Healthcare indices climbed 2.5% and 1.9% respectively, becoming top gainers among the sectoral indices while Auto index was the top loser, down 1.4%, followed by 1.2% lower IT and Private Bank indices.

 

FIIs net bought stocks and stock futures worth Rs 1602 cr and 288 cr respectively but net sold index futures worth Rs 395 cr. DIIs were net sellers to the tune of Rs 1959 cr.

 

Rupee depreciated 8 paise to end at 83.32/$.

 

OUTLOOK

 

Today morning, Nikkei is shut while Hang Seng is down a percent and Shanghai is marginally higher. GIFT Nifty is suggesting around 75 points lower start for our market.

 

In yesterday's report we had said that 22000 continued to be next upside target for Nifty while 21650-21600 was the immediate support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a low of 21555, rebounded to end at 21665. The benchmark is set to open near 21600 today.

 

A breach of yesterday's low, i.e. 21555 would confirm a "Sell" on the hourly chart. 20-DMA, placed around 21300, would be next downside level to eye if that happens; 21834, the top made on Monday, is the immediate hurdle, upon crossover of which, 22000 would be next upside level to eye.

 

For Banknifty, 47300-47200 is the next support area; 48200 is immediate hurdle.

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