22126 CONTINUES TO BE UPSIDE LEVEL TO EYE

 

22126 CONTINUES TO BE UPSIDE LEVEL TO EYE

 

WORLD MARKETS

 

U.S. indices gained 0.1%-0.4%.

 

U.S. 10-year treasury yield fell 6 bps to 4.102%. Dollar index fell 0.3% to 104.14. Gold rose half a percent to $2035 per ounce.

 

WTI crude future rose 0.7% to settle at $73.31 a barrel. Brent future settled at $78.59 a barrel, up 60 0.8%.

 

European markets gained 0.5%-0.9%. Data showed German industrial orders unexpectedly jumped in December, while euro zone consumers have trimmed their expectations for inflation over the next 12 months.

 

China and Hong Kong stocks jumped as authorities took measures to arrest a recent sell-off in equities.

 

AT HOME

 

Sensex and Nifty rose 0.6% and 0.7% respectively, recouping more than what was lost yesterday and closed at the highest level after 16th January. Sensex settled at 72186, up 454 points while Nifty added 157 points to finish at 21929. Nifty mid-cap and small-cap indices surged 1.2% and 0.8% respectively. Nifty mid-cap index hit a record high in terms of intraday as well as closing basis while small-cap index made a record closing high. Nifty IT and Oil & Gas indices surged 2.9% and 2.7% respectively, becoming top gainers among the sectoral indices while Bank and FMCG indices were the top losers, down 0.3% and 0.2% respectively.

 

 

FIIs net bought stocks and index futures worth Rs 93 cr and 568 cr respectively but net sold stock futures worth Rs 1892 cr. DIIs were net buyers to the tune of Rs 1096 cr.

 

Rupee ended unchanged at 83.06/$.

 

Britannnia's quarterly numbers were largely in-line with estimates with volume growth, at 5.5%, beating estimate.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 1.5% and 0.6% respectively while Nikkei is off 0.2%. GIFT Nifty is suggesting around 140 points gap-up start for our market.

 

In yesterday's report we had said that 21650-21600 was the important immediate support area while 22126, the top made last week, continued to be immediate hurdle.

 

Nifty, after touching a low of 21737, rebounded to end at 21929 and is set to open near 22050 today.

 

22126, the top made last week, continues to be immediate hurdle, upon crossover of which, 22450-22500 would be next target area; 20 and 34-DMAs are placed around 21670 and 21620 respectively, making 21670-21620 important immediate support area.

 

For Banknifty, 34-DMA, placed around 46900, is the immediate hurdle while 45071, the low made last the week, is the next downside level to eye.

 

Tata Consumer and Nestle will report their quarterly earnings today.

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