21834 ABOVE 21760; 21500 IS IMMEDIATE HURDLE

 

21834 ABOVE 21760; 21500 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices ended modestly higher on Friday after digesting strong nonfarm payroll and weak services data for December.

 

The U.S. economy added 216,000 jobs in December, much more than the expected 170,000. The unemployment rate was steady from November at 3.7%, compared with expectations of a rise to 3.8%, while average earnings rose 0.4% on a monthly basis, against forecasts of a 0.3% gain. December’s ISM services index came in at 50.6%, below the estimate of 52.5% and November’s 52.7% level.

 

U.S. 10-year treasury yield rose 5 bps to 4.05%. Dollar index was little changed at 102.43. Gold inched up 0.1% to $2045 per ounce.

 

Brent crude futures rose 1.8% to $79.01 a barrel, while WTI futures rose 2.5% to $73.97.

 

In Europe, FTSE and CAC fell 0.4% while DAX fell 0.1%. Euro zone December inflation climbed to 2.9% y-o-y from 2.4% the previous month, though came in just below a 3% forecast.

 

For the week, U.S. indices fell 0.6%-3.2%, snapping 9-week winning streak. The dollar gained 1.1%, its best weekly rise since mid-July.

 

AT HOME

 

Benchmark indices ended higher by a fourth of a percent each, extending the winning streak to second straight session. Sensex settled at 72026, up 178 points while Nifty added 52 points to finish at 21710. Nifty mid-cap and small-cap indices rose 0.2% and 0.6% respectively, both hitting fresh record highs. Nifty It index climbed 1.3%, becoming top gainer among the sectoral indices, followed by 0.4% higher Auto and Realty indices. Healthcare index was the top loser, down 0.6%, followed by 0.4% lower PSU Bank index.

 

FIIs net bought stocks and index futures worth Rs 1697 cr and 485 cr respectively but net sold stock futures worth Rs 575 cr. DIIs were net sellers to the tune of Rs 3498 cr.

 

Rupee appreciated 8 paise to end at 83.15/$.

 

For the week, Sensex fell 0.3% while Nifty was a tad lower.

 

India’s real GDP growth in 2023-24 estimated at 7.3%, compared to 7.2% a year ago, as per the first advance estimates of national income released by the National Statistical Office (NSO).

 

OUTLOOK

 

In Friday's report we had said that 21700 continued to be immediate hurdle, upon crossover of which, 21834, the top made on Monday, would be next resistance to eye while 21500, the low made Wednesday, was the immediate support.

 

Nifty touched a high of 21750 before closing at 21710.

 

Today morning, Nikkei is shut while Hang Seng and Shanghai are down 1.4% and 0.9% respectively. GIFT Nifty is suggesting around 30 points lower start for our market.

 

21760, the 78.6% retracement level of the recent 21834-21500 fall, is the immediate hurdle, upon crossover of which, 21834, the top made last week, would be next upside target to eye. On the way down, 21500, the low made last week, which coincided with the 38.2% retracement level of the 20976-21834 upmove seen since 21st December, is the immediate support.

 

For Banknifty, 48390, the 78.6% retracement level of the recent 48636-47481 fall, is the immediate hurdle, upon crossover of which, 48636, the top made on 28th December, would be next upside level to eye. On the way down, 47822, the low made on Friday, is the immediate support, upon breach of which, 47481, the low made during the week, would be bigger support to eye.

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