22250-22200 IS THE NEXT TARGET AREA; 21700-21650 IS THE SUPPORT ZONE
WORLD MARKETS
Dow fell 0.3% while S
& P 500 and Nasdaq ended marginally in the green on Friday as traders
parsed through the first batch of fourth-quarter earnings and digested the
wholesale inflation data.
December producer price
index fell 0.1% for the month and rose 1% y-o-y, as against expectation of a
monthly gain of 0.1%. Excluding food and energy, core PPI was flat against the
estimate for a 0.2% increase.
Bank of America shares
fell 1.1% after posting declining fourth-quarter profit, while Wells Fargo
shed 3.3% despite posting a higher profit for
the quarterly period. Shares of JPMorgan Chase
lost 0.7% after the bank said its earnings
slipped by 15% from a year earlier. Citigroup rose 1% after announcing 10%
workforce cut and posting a $1.8 billion quarterly loss after incurring several
large charges. Dow component UnitedHealth fell 3.4% despite the company
announcing higher-than-expected earnings and revenue for the fourth quarter.
Delta Air Lines also plunged 9% even after exceeding quarterly earnings
expectations.
U.S. 10-year treasury
yield fell 3 bps to 3.941%. Dollar index inched up 0.1% to 102.44. Gold jumped
1.1% to $2049 per ounce.
Oil prices intraday
surged more than 4% to hit their highest levels since Dec. 27 after Britain and
the United States carried out military strikes against targets in
Houthi-controlled areas of Yemen. U.S.
crude oil jumped to $75.25 before coming back to $72.68 a barrel while Brent
touched $80.75 but reversed from there to settle at $78.29.
European markets gained
0.6%-1%.
For the week, Dow, S
& P 500 and Nasdaq gained 0.3%, 1.8% and 3.1% respectively. In Europe, FTSE
was down 0.8% but DAX and CAC gained 0.6% each. In Asia, Nikkei soared 6.6%,
Nifty inched up 0.8% but Hang Seng and Shanghai fell 1.8% and 1.6% respectively.
WTI crude fell 1.6%. U.S. 10-year treasury yield fell 10 bps to 3.944. Dollar
index was flat at 102.44. Gold inched up 0.2%.
AT HOME
Benchmark indices surged
1.1% each for their best day since 15th December and hit fresh record highs.
Sensex settled at 72568, up 847 points while Nifty added 247 points to finish
at 21894. Nifty mid-cap and small-cap indices rose 0.4% each, with the former
posting record close while the latter hit intraday as well as closing record
high. Nifty IT index soared 5.1%, becoming top gainer among the sectoral
indices and posting it's best single day gain after 15th July 2020. PSU Bank
followed with 2.8 jump. Media and Healthcare indices were the top losers, down
0.6% and 0.5% respectively.
FIIs net sold stocks
worth Rs 340 cr but net bought index futures and stock futures worth Rs 64 cr
and 551 cr respectively. DIIs were net buyers to the tune of Rs 2912 cr.
Rupee appreciated 11
paise to end at 82.92/$.
For the week, Sensex and
Nifty gained 0.8% each.
HCL Tech reported stellar
set of results as dollar revenue grew 6% and margin expanded. Wipro's dollar
revenue fell 2% revenue but beat estimate along with margin and the management
said there are green shoots in discretionary spending.
Retail inflation accelerated
marginally to 5.69% in December from 5.55% in November. Core CPI however eased
to 3.9% from 4.1%. Industrial output growth slowed to 2.4% in November from
11.7% in October.
China’s annual exports
dropped 4.6% in 2023, marking the first dip in seven years.
OUTLOOK
Today morning, Nikkei is
up 0.6% but Hang Seng and Shanghai are down 0.8% and 0.4% respectively. GIFT
Nifty is suggesting around 90 points higher start for our market.
In Friday's report we had
reiterated that 21760 was the immediate hurdle.
Nifty, after crossing
this hurdle, surged all the way to 21928 before closing at 21894 and is set to
open near 22000 today.
22200-22250 is the next
target area for Nifty; 21700-21650 is the immediate support zone on the hourly
chart, with the stop-loss of which, trading longs can be held on to.
47900 continues to be
immediate hurdle for Banknifty, above which, 48380 and 48636, the tops made on
5th January and 28th December respectively, would be next upside levels to eye;
47250, 47000 are downside levels to eye.
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