34-DMA LANDS SUPPORT AROUND 21350; 21850 IS IMMEDIATE HURDLE

 

34-DMA LANDS SUPPORT AROUND 21350; 21850 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow fell 0.25% while S & P 500 and Nasdaq fell 0.6% each as Treasury yields rose following stronger-than-expected retail sales data.

 

December retail sales were up 0.6% from November, and gained 0.4% excluding autos. This was against estimate of 0.4% month-to-month increase in retail sales and 0.2% ex-autos.

 

U.S. 10-year treasury yield rose 4 bps to 4.106%. Dollar index was little changed at 103.37. Gold fell 1.1% to $2006 per ounce.

 

Brent crude futures settled down 41 cents to $77.88 a barrel while WTI gained 16 cents at $72.56.

 

European markets fell 0.8%-1.5%. At the World Economic Forum in Davos, more European Central Bank members indicated that markets were getting ahead of themselves on rate cut projections.

 

China’s economy expanded by 5.2% in the fourth quarter of 2023, missing estimates of 5.3% growth.

 

AT HOME

 

Benchmark indices nosedived more than 2% for their worst fall since mid-June 2022. Sensex lost 1628 points to settle at 71500 while Nifty finished at 21571, down 460 points. Nifty mid-cap and small-cap indices fell 1.1% and 1.2% respectively. Except 0.6% higher IT index, all the NSE sectoral indices ended lower, with Bank and Financial Services indices being the top losers, down 4.3% each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 10578 cr, 5048 cr and 6012 cr respectively. DIIs were net buyers to the tune of Rs 4006 cr.

 

Rupee depreciated 7 paise to end at 83.14/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.4% and 0.2% respectively while Shanghai is down 1.2%. GIFT Nifty is suggesting around 190 points gap-down start for our market.

 

In yesterday's report we had said that immediate support on the hourly chart has moved up to 21800, upon breach of which, 21550-21500 would be next support area.

 

Nifty plunged all the way to 21550 before closing at 21571 and is set to open near 21400 today.

 

34-DMA, placed around 21350, is the important support to eye; 21850 is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 45484-44951, the gap created by gap-up opening on 4th December, is the next support area; 47550 is the immediate hurdle.

 

Indusind Bank will report its quarterly earnings today.

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