NIFTY REBOUNDS FROM 20-DMA SUPPORT; 21760 IS THE IMMEDIATE HURDLE

 

NIFTY REBOUNDS FROM 20-DMA SUPPORT; 21760 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices gained 0.4%-0.8%, with Wall Street preparing for the latest inflation data and the start of the fourth-quarter earnings season.

 

U.S. 10-year treasury yield rose 2 bps to 4.03%. Dollar index fell 0.2% to 102.36. Gold fell 0.3% to $2024 per ounce.

 

WTI crude futures fell 1.2% to $71.37 a barrel while Brent futures settled 1% lower at $76.80 a barrel after a surprise jump in U.S. crude stockpiles.

 

In Europe, FTSE fell 0.4% while DAX and CAC were little changed.

 

AT HOME

 

After falling nearly half a percent, benchmark indices rebounded in late noon session to end higher by nearly four tenth of a percent. Sensex settled at 71657, up 271 points while Nifty added 73 points to finish at 21618. Nifty mid-cap index rose 0.3% but small-cap index fell 0.2%. Nifty Media index surged 3.5%, becoming top gainer among the sectoral indices, followed by 1% higher Metal index. FMCG and PSU Bank indices were the top losers, down 0.4% and 0.3% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1721 cr, 641 cr and 1099 cr respectively. DIIs were net buyers to the tune of Rs 2080 cr.

 

Rupee appreciated 8 paise to end at 83.04/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 2% and 0.6% respectively while Shanghai is off 0.2%. GIFT Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 21492, the low made Monday, was the immediate support, upon breach of which, 21400 would be next downside levels to eye and that 21760, the top made Monday, was the immediate hurdle.

 

Nifty, after touching a low of 21448, rebounded to end at 21618.

 

21448, the low made yesterday, coincided with 20-DMA and hence is the immediate support to eye; On the way up, 21760, the top made Monday, continues to be immediate hurdle.

 

For Banknifty, 34-DMA, placed around 46900, is the important immediate support; 47900 is the immediate hurdle.

 

TCS and Infosys will report their quarterly earnings today.

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