21834 ABOVE 21700; 21500 IS IMMEDIATE SUPPORT

 

21834 ABOVE 21700; 21500 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow ended little changed while S & P 500 and Nasdaq fell 0.3% and 0.6% respectively. The S&P 500 and Nasdaq Composite declined for their fourth and fifth straight negative session, respectively.

 

Data from ADP showed private payrolls increased by 164,000 jobs last month as against the expected increase of 115000 and marking the largest monthly increase since August. Weekly jobless claims dropped by 18,000 to 202,000 as against expected figure of 216000.

 

U.S. 10-year treasury yield rose 8 bps to 4%. Dollar index was flat at 102.42. Gold inched up 0.1% to $2043 per ounce.

 

WTI crude future fell 0.7% to $72.19 a barrel while Brent future fell 0.8% to settle at $77.59 a barrel.

 

Main European markets gained half a percent each. French consumer prices rose 3.7% year-on-year in December, a slight rise from 3.5% in November. In Germany, CPI inflation rose to 3.7% in December, as expected, from 3.2% a month earlier.  UK net borrowing in November was the highest in nearly seven years. UK Services PMI showed Britain’s services firms grew more strongly in December than initially thought and optimism hit a seven-month high. Euro zone composite PMI showed a continuation of the contraction in output that began in June.

 

AT HOME

 

Benchmark indices climbed seven tenth of a percent each, snapping a 2-session losing streak. Sensex settled at 71447, up 490 points while Nifty added 141 points to finish at 21658. Nifty mid-cap and small-cap indices surged 1.7% and 1% respectively, both hitting fresh record highs. All the NSE sectoral indices ended higher, with Realty index on the top, up 6.8%, followed by 1.5% higher Financial Services index.

 

FIIs net bought stocks and index futures worth Rs 1513 cr and 122 cr respectively but net sold stock futures worth Rs 525 cr. DIIs were net sellers to the tune of Rs 1387 cr.

 

Rupee appreciated 5 paise to end at 83.23/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.4% while Hang Seng and Shanghai are flat. GIFT Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 20-DMA, placed around 21350, was the next downside level to eye while 21700 was the immediate hurdle, upon crossover of which, 21834, the top made on Monday, would be next resistance to eye.

 

Nifty surged to touch a high of 21685 before closing at 21658.

 

21700 continues to be immediate hurdle, upon crossover of which, 21834, the top made on Monday, would be next resistance to eye; 21500, the low made Wednesday, is the immediate support.

 

For Banknifty, 48636, the top made last week, is the next upside level to eye. 47481, the low made Wednesday, is immediate support.

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