21912 NEXT; 21500 IS IMMEDIATE SUPPORT

 

21912 NEXT; 21500 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.6%-1.1%, with the Dow and S & P 500 hitting fresh record highs as Wall Street looked toward several mega-cap tech earnings reports and the Federal Reserve’s rate policy decision.

 

U.S. 10-year treasury yield fell 7 bps to 4.076%. Dollar index was flat at 103.46. Gold inched up 0.8% to $2033 per ounce.

 

Oil prices fell after a court in Hong Kong on ordered the liquidation of China Evergrande, the world’s most indebted property developer. Brent futures fell 1.4% to settle $82.40 a barrel, while WTI dropped 1.6% to $76.78 a barrel.

 

In Europe, FTSE and DAX ended marginally in the red while CAC inched up 0.1%.

 

AT HOME

 

Benchmark indices climbed 1.8% each, posting their best percentage gain after 4th December 2023. Sensex settled at 71941, up 1240 points while Nifty added 385 points to finish at 21737. Nifty mid-cap and small-cap indices jumped 1.6% and 1.5% respectively, with the latter posting highest ever close.

Except 0.1% lower FMCG index, all the NSE sectoral indices ended higher, with Oil & Gas index on the top, up 5.2%, followed by 2.4% higher PSU Bank index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 110 cr, 1137 cr and 8144 cr respectively. DIIs were net buyers to the tune of Rs 3221 cr.

 

Rupee depreciated 1 paise to end at 83.13/$.

 

ITC delivered a soft quarter as Cigarette volumes remain muted even as profit beat estimate. Bajaj Finance numbers beat estimates as AUM growth comes at 35% and profit growth stood at 20%.

 

OUTLOOK

 

Today morning, Nikkei is up 0.4% but Hang Seng and Shanghai are down 2% and 0.6% respectively. GIFT Nifty is suggesting nearly 100 points gap-up start for our market.

 

In yesterday's report we had said that 21550 continued to be immediate hurdle on the hourly chart, upon crossover of which, 21750 and 21912, the 61.8% and 78.6% retracement levels of the recent 22124-21137 fall, would be next upside levels to eye.

 

Nifty crossed 21550 and surged all the way to 21763 before closing at 21737 and is set to open above 21800 today.

 

21912, the 78.6% retracement levels of the recent 22124-21137 fall, is the next upside levels to eye; 21500 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 46580, the top made last week, is the next upside level to eye; 44430, the low made last week, around which 200-DMA is also placed, is the immediate support.

 

L & T and Dr Reddy's will report their quarterly earnings today.

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