21850 CONTINUES TO BE IMMEDIATE HURDLE; 21285 IMPORTANT SUPPORT

 

21850 CONTINUES TO BE IMMEDIATE HURDLE; 21285 IMPORTANT SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.2%-0.4% with the Dow Jones Industrial Average surpassing 38,000 for the first time ever and S & P 500 hit fresh record highs.

 

U.S. 10-year treasury yield fell 2 bps to 4.109%. Dollar index inched up 0.1% to 103.36. Gold fell 0.4% to $2021 per ounce.

 

The WTI futures contract for February gained 2.4% to settle at $75.19 a barrel. The Brent contract for March rose 1.9% to settle at $80.06 a barrel.

 

Main European markets gained 0.4%-0.8%

 

China kept its loan prime rates unchanged, as expected.

 

AT HOME

 

In the special trading session on Saturday, after rising nearly half a percent at the open, Sensex and Nifty saw a sustained downward movement through the session to end lower by 0.4% and 0.2% respectively. Sensex settled at 71423, down 260 points while Nifty lost 50 points to finish at 21571. Nifty mid-cap and small-cap indices however gained 0.5% and 0.2% respectively, extending the winning streak to second straight day and the former hitting fresh record high.

 

For the week, Sensex and Nifty fell 1.6% and 1.5% respectively in the long, six-session, trading week, marking the biggest cut in nearly 3-months.

 

ICICI Bank's third quarter numbers beat estimates but NII hits 5-quarter low. Cipla reported a top-down beat

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.5%-3% with Hang Seng on the top. GIFT Nifty is suggesting around 150 points higher start for our market.

 

In Saturday's report we had said that 21850 continued to be immediate hurdle, while 21285, the low made on Thursday, continues to be important immediate support.

 

Nifty, after touching a high of 21720, reversed to end at 21571. The benchmark is set to open near 21600 today.

 

21850 continues to be immediate hurdle, upon crossover of which, 22124, the top made last week, would be next upside level to eye; 21285, the low made last week, continues to be important immediate support.

 

For Banknifty, 45430, the low made Thursday, 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.

 

Axis Bank, Havells, Pidilite and United Spirits will report their quarterly earnings today.