14320 CONTINUES TO BE IMMEDIATE SUPPORT; 14653 IS IMMEDIATE HURDLE

 

14320 CONTINUES TO BE IMMEDIATE SUPPORT; 14653 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.6%-0.9% on weak economic data, fall in energy and financial stocks and concerns over reemergence of Covid-19 cases in China.

 

Retail sales fell 0.7% in December, worse than the expected decline of 0.1%.

 

Wells Fargo and Citigroup declined 7.8% and 6.9%, respectively, even after posting earnings beat. JPMorgan also fell more than 1% despite reporting better-than-expected earnings.

 

Brent as well as WTI crude fell 2.3% each to settle at $55.10 per barrel and $52.36 per barrel respectively on concerns over Chinese cities in lockdown due to coronavirus outbreaks.

 

10-year Treasury yield dipped 3 bps to 1.096%, while the yield on the 30-year Treasury bond fell 4 bps to 1.838%. Dollar index climbed 0.56% to 90.773. Spot gold slipped 1% to $1,827.90 per ounce.

 

European markets slipped 1%-1.7%. The U.K. economy contracted by 2.6% in November as the country implemented fresh lockdown measures. This was better than the -5.7% expectation but marked a first contraction since the onset of the coronavirus crisis last spring. France's December CPI inflation came in at 0.0% y-o-y and 0.2% month on month.

 

For the week, Dow and Nasdaq fell 0.9% and 1.5% respectively, snapping four-week winning streak. The S & P 500 lost 1.5%. Main European markets fell between 1.7%-2%. In Asia, Hang Seng, Nikkei and Nifty rose 2.5%, 1.4% and 0.6% respectively while Shanghai was down 0.1%.

 

WTI and Brent crude both hit their highest in nearly a year earlier in the week but slipped later to end lower for the week. WTI crude fell 1.3% to $52.04 per barrel. Dollar index rose 0.8% to 90.78, its best weekly showing in 11 weeks. Gold fell 1.2% to $1828 per ounce.

 

AT HOME

 

Benchmark indices nosedived 1.1% each, suffering the worst fall since 21st December. Sensex settled at 49034, down 549 points while Nifty lost 162 points to finish at 14433. Nifty mid-cap and small-cap indices too slipped 1.1% each. Except 3.7% higher Telecom index, all the BSE sectoral indices ended in red with Oil & Gas and IT indices leading the losses, down 2.4% and 1.9% respectively. 

 

FIIs net bought stocks worth Rs 971 cr but net sold index futures and stock futures worth Rs 1063 cr and 932 cr respectively. DIIs were net sellers to the tune of Rs 942 cr.

 

Rupee depreciated 3 paise to end at 73.07/$.

 

For the week, Sensex and Nifty rose 0.5% and 0.6% respectively, extending the winning streak to 11th and 3rd straight week respectively.

 

OUTLOOK

 

China's Q4 GDP growth stood at 6.5% y-o-y, up from 4.9% of the prior quarter and better than the expectation of 6.1% growth. Retail sales for the quarter rose 4.6%.

 

Today morning, Hang Seng and Shanghai are up around a fifth of a percent while Nikkei is down 0.8%. SGX Nifty is suggesting around 30 points lower start for our market.

 

In Friday's report we had said that 14653, the top made Wednesday, was the immediate hurdle to eye while 14320 continued to be immediate support.

 

Nifty slipped to touch a low of 14357 before closing at 14433 and is set to open near 14400 today.

 

14320 continues to be immediate support on the hourly chart, upon breach of which, 20-DMA, placed around 14100, which also coincides with an upward sloping trendline adjoining bottoms made on 30th October and 21st December, would be the next support to eye.

 

On the way up, 14653, the top made last Wednesday, continues to be immediate hurdle.

 

Meanwhile, trading longs should be cut if 14320 breaks.

 

Markets in the U.S. will be closed today for a holiday.

 

14900 ABOVE 14653; 14320 CONTINUES TO BE IMMEDIATE SUPPORT

 

14900 ABOVE 14653; 14320 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

After a positive start US indices slipped to end with cuts of 0.1%-0.4%  on the back of weak economic data.

 

Jobless claims jumped to its highest since last August at 965,000 last week, more than the expected figure of 800,000  and previous week's 787,000 number.

 

Fed Chair Powell said an interest rate hike is coming “no time soon” and pushed back against suggestions that the central bank might start tapering its bond purchases any time soon.

 

In the evening, President-elect Joe Biden announced details of a $1.9 trillion stimulus plan which includes increasing the additional federal unemployment payments to $400 per week and extending them through September, direct payments to many Americans of $1,400, and extending the federal moratoriums on evictions and foreclosures through September. The plan also calls for $350 billion in aid to state and local governments, $70 billion for Covid testing and vaccination programs and raising the federal minimum wage to $15 per hour.

 

10-year Treasury yield gained 4 basis points to 1.129%, while the yield on the 30-year Treasury bond rose 6 bps to 1.876%. Dollar index fell 0.2%. Spot gold rose 0.8%.

 

Brent crude rose 26 cents, or 0.5%, to $56.32 a barrel WTI crude settled 66 cents, or 1.25%, higher at $53.57 per barrel.

 

In Europe, FTSE rose 0.8% while DAX and CAC were up a third of a percent. The German economy shrank by 5% in 2020, according to preliminary data, slightly beating the -5.1% expectation.

 

Earlier, Chinese trade data for December showed the country’s exports rose 18.1% in December, higher than expectations for a 15% increase. Imports grew 6.5%, as compared with expectations for a 5% rise.

 

AT HOME

 

Benchmark indices rose a fifth of a percent, making fresh record highs on closing basis. Sensex settled at 49584, up 91 points while Nifty added 30 points to finish at 14595. Nifty mid-cap and small-cap indices rose 0.1% and 0.6% respectively. BSE Capital Goods and Oil & Gas indices climbed 1.7% and 1.4% respectively, becoming top gainers among the sectoral indices while Metal index slipped 1.2%, becoming top loser, followed by 0.6% lower Basic Materials index.

 

FIIs net bought stocks and index futures worth Rs 1077 cr and 9 cr respectively but net sold stock futures worth Rs 569 cr. DIIs were net sellers to the tune of Rs 188 cr.

 

Rupee appreciated 10 paise to end at 73.04/$.

 

December WPI inflation came in at 1.22%, down from 1.55% in the previous months.

 

OUTLOOK

 

Today morning, Shanghai is marginally higher while Nikkei and Hang Seng are down a fifth of a percent each. SGX Nifty is suggesting around 60 points lower start for our market.

 

In yesterday's report we had said that 14900, around which an upward sloping trendline adjoining tops made in 2010 and 2015 is placed, is the next major target as well as resistance to eye and had advised trailing stop-loss in long positions to 14320.

 

Nifty touched a high of 14617 before closing at 14595 and is set to open below 14550 today.

 

14653, the top made Wednesday, is the immediate hurdle to eye, upon crossover of which, 14900-15000, around which an upward sloping trendline adjoining tops made in 2010 and 2015 is placed, would be next major target as well as resistance to eye.

 

14320 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

HCL Tech will report its quarterly earnings today.

 

14900 IS THE NEXT UPSIDE LEVEL TO EYE; 14320 CONTINUES TO BE IMMEDIATE SUPPORT

 

14900 IS THE NEXT UPSIDE LEVEL TO EYE; 14320 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Nasdaq and S & P 500 rose 0.4% and 0.2% respectively while Dow ended little changed as Intel surged to lead tech stocks higher and U.S. interest rates eased from their highest levels since March 2020.

 

10-year Treasury yield fell 6 bps to 1.081%, while that on the 30-year Treasury slipped 6 bps to 1.823%. The decline came after Fed Vice Chairman said the central bank won’t raise rates until inflation reaches 2%.

 

December CPI showed a rise of 0.4%, matching expectations. Core CPI, less food and energy, edged up 0.1%, also in line with estimates.

 

House members voted to impeach President Donald Trump for a second time — making him the first U.S. president ever to be impeached twice

 

Brent crude fell 53 cents to $56.05 a barrel while WTI crude settled 30 cents, or 0.6% lower at $52.91 per barrel.

 

Dollar index rose 0.344% to 90.335. Spot gold was little changed at $1,854.84 an ounce.

 

China recorded the biggest daily jump in COVID cases in more than five months. Governments across Europe announced tighter and longer coronavirus lockdowns over fears about a fast-spreading variant first detected in Britain.

 

In Europe, except 0.1% lower FTSE, other markets rose 0.1%-0.4%.

 

AT HOME

 

After rising more than half a percent in the initial trade, benchmark indices plunged a percent and half but recouped half of the losses in late noon trade to end flat. Sensex settled at 49492, down 24 points while Nifty added 1 point to finish at 14564. Nifty mid-cap and small-cap indices fell 0.6% and 0.2% respectively. BSE Telecom and Auto indices rose 1.3% and 0.8% respectively, becoming top gainers among the sectoral indices while Consumer Durables and Healthcare indices were the top losers, down 1% and 0.8% respectively.

 

FIIs net bought stocks worth Rs 1879 cr but net sold index futures and stock futures worth Rs 976 cr and 1285 cr respectively. DIIs were net sellers to the tune of Rs 2370 cr.

 

Rupee appreciated 11 paise to end at 73.14/$.

 

Infosys and Wipro reported stellar set of earnings. Infosys reported constant currency revenue growth of 5.3% q-o-q, which is the best Q3 sequential growth in 8 years. Margins stood at 25.4%. The company raised constant currency revenue growth guidance to 4.5-5% and margin guidance to 24-24.5%.

 

Wipro reported dollar revenue growth of 3.9% which is best in 36 quarters. Margins, at 21.7%, are best in last 22 quarters. Q4 revenue growth guidance was strong at 1.5-3.5%.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.2% and 0.2% respectively while Shanghai is down 0.4%. SGX Nifty is suggesting a flattish start for our market.

 

Readers would recall that we have been bullish on Nifty after 13650 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

In yesterday's report we had said that 14625 continued to be next upside target, upon crossover of which, 14900 would be the next level to eye. We had also advised trailing stop-loss to 14320.

 

Nifty, after touching a high of 14653 in the initial trade, slipped to 14435 but rebounded from there to end at 14565.

 

14900, around which an upward sloping trendline adjoining tops made in 2010 and 2015 is placed, is the next major target as well as resistance to eye.

 

14320 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

TRAIL STOP-LOSS TO 14320

 

TRAIL STOP-LOSS TO 14320

 

WORLD MARKETS

 

Nasdaq and Dow rose 0.3% and 0.2% respectively while S & P 500 was little changed, digesting higher rates, possible additional stimulus measures and political turmoil.

 

President-elect Joe Biden is expected to release details on his economic plan on Thursday.

 

Meanwhile, the Democratic-held House was due to vote Tuesday night on a resolution calling on Vice President Mike Pence and the Cabinet to invoke the 25th Amendment to push Trump out of the White House.

 

10-year Treasury yield closed little changed at 1.13% after rising to 1.18%, its highest level since March 20. The dollar index slipped 0.3%. Spot gold rose 0.2% to $1,848.31 per ounce.

 

Brent crude rose 80 cents, or 1.4%, to $56.44 a barrel and earlier hit $56.75, the highest since last February. WTI crude settled 1.8%, or 96 cents, higher at $53.21 per barrel.

 

European markets fell between 0.1%-0.6%.

 

AT HOME

 

Benchmark indices rose half a percent each, extending the winning streak to third straight day and hitting fresh record highs. Sensex settled at 49517, up 247 points while Nifty added 78 points to finish at 14563. Nifty mid-cap index rose 0.7% and also hit fresh record high while small-cap index inched up 0.1%. BSE Telecom and Realty indices surged 2.8% each, becoming top gainers among the sectoral indices, followed by 2.6% higher Energy index. Consumer Durables and Healthcare indices were the top losers, down 1% and 0.6% respectively.

 

FIIs net bought stocks worth Rs 571 cr but net sold index futures and stock futures worth Rs 1206 cr and 304 cr respectively. DIIs were net sellers to the tune of Rs 1334 cr.

 

Rupee appreciated 15 paise to end at 73.25/$.

 

India’s consumer price inflation fell to 4.59% in December from 6.93% in November, mainly due to a crash in vegetable prices. Core inflation eased to 5.34% from 5.56%.

 

The index of industrial production contracted 1.9% in November, the first fall since September, as the impact of inventory build-up and festive demand waned.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-0.4% and SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 14625 continued to be next upside level to eye.

 

Nifty touched a high of 14590 before closing at 14563 and is set to open near 14600 today.

 

14625 continues to be next upside target, upon crossover of which, 14900, around which an upward sloping trendline adjoining tops made in 2010 and 2015 is placed, would be the next major target as well as resistance to eye.

 

Immediate support on the hourly chart has moved up to 14320, with the stop-loss of which, trading longs should be held on to.

 

Infosys and Wipro will report their quarterly earnings today.

14625 IS THE NEXT UPSIDE LEVEL; 14180 CONTINUES TO BE IMMEDIATE SUPPORT

 

14625 IS THE NEXT UPSIDE LEVEL; 14180 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell between 0.3%-1.2%, with Nasdaq leading the losses, as technology stocks slipped on profit booking and concerns over potential for heightened regulation.

 

House Democrats introduced an article of impeachment against President Trump for inciting the mob attack at the Capitol last week.

 

WTI crude settled 1 cent higher at $52.25 per barrel while Brent crude fell 33 cents, or 0.6%, to settle at $55.66 per barrel.

 

US 10-year Treasury yield rose 2 basis points to 1.132%, while that of 30-year Treasury also rose 2 basis points to 1.892% after President-elect Joe Biden on Friday promised further economic stimulus that would be “in the trillions of dollars. The spread between the 2-year and 10-year Treasury yield rose to 99 bps, its steepest since July 2017. The dollar index rose 0.4% to 90.636, a near three-week high.

 

European markets fell 0.3%-1.1%.

 

AT HOME

 

Benchmark indices surged a percent, hitting fresh record highs. Sensex settled at 49269, up 486 points while Nifty added 137 points to finish at 14484. Nifty mid-cap and small-cap indices however fell 0.2% and 0.04% respectively. BSE IT and Teck indices jumped 3.6% and 3.1% respectively, becoming top gainers among the sectoral indices while Energy and Metal indices were the top losers, down 1.3% and 1.2% respectively.

 

FIIs net bought stocks and stock futures worth Rs 3139 cr and 697 cr respectively but net sold index futures worth Rs 1357 cr. DIIs were net sellers to the tune of Rs 2610 cr.

 

Rupee depreciated 14 paise to close at 73.38/$.

 

OUTLOOK

 

Today morning, Asian markets are trading mixed with modest changes. SGX Nifty is suggesting around 15 points lower start for our market.

 

In yesterday's report we had said that 14450 was the next upside target, upon crossover of which 14625 would be the next level to eye. We had also advised trailing stop-loss to 14180.

 

Nifty surged to 14498 before closing at 14485.

 

14625 continues to be next upside level to eye.

 

14180 continues to be immediate support, with the stop-loss of which, trading long should be held on to.

 

14450, 14625 ARE THE UPSIDE LEVELS TO EYE; TRAIL STOP-LOSS TO 14180

 

14450, 14625 ARE THE UPSIDE LEVELS TO EYE; TRAIL STOP-LOSS TO 14180

 

WORLD MARKETS

 

Nasdaq and S & P 500 rose 1% and 0.6% respectively while Dow rose 0.2% on Friday on optimism that a Democratic-controlled U.S. government will lead to greater fiscal support.

 

The U.S. economy lost 140,000 jobs in December, as against the expectation of a gain of 50,000. It also marked the first job loss since April. The unemployment rate was 6.7%, compared to the 6.8% estimate.

 

Meanwhile, Trump admitted in his own words for the first time on Thursday that the Biden administration will take charge on Jan. 20, having challenged the outcome of the election since Nov. 3.

 

Brent crude climbed 94 cents, or 1.8%, to $55.35 a barrel, and WTI settled $1.41, or 2.8%, higher at $52.24 per barrel.

 

The yield on the benchmark 10-year Treasury note gained 5 bps to 1.124%, its highest level since March 30. The yield on the 30-year Treasury bond also rose 4 basis points to 1.893%, it's highest since March. Spot gold plunged 3.6% to $1,843.06 per ounce.

 

A laboratory study indicated that the Pfizer and BioNTech vaccine could be effective against the new, highly-transmissible mutations of the virus found in the U.K. and South Africa.

 

European markets gained 0.2%-0.6% with Germany’s DAX index notching a new record high. Eurozone unemployment unexpectedly declined in November, falling to 8.3% from 8.4% in October.

 

Earlier, mainland Chinese shares fell after the New York Stock Exchange’s announcement that it will delist the U.S.-listed stocks of those three Chinese telecommunication giants to comply with an executive order signed by President Trump last year.

 

For the week, the Dow and S&P 500 each gained more than 1%, while the Nasdaq advanced 2.4%.

 

AT HOME

 

Bulls were back to work after two-day rest as benchmark indices soared a percent and half to hit fresh record highs. Sensex settled at 48782, up 689 points while Nifty added 210 points to finish at 14347. Nifty mid-cap and small-cap indices rose 1% and 0.6% respectively. Except 0.9% and 0.5% lower Metal and Telecom indices respectively, all the BSE sectoral indices ended in green, with IT and Auto indices leading the tally, up 3.6% and 3.4% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 6030 cr, 1133 cr and 685 cr respectively. DIIs were net sellers to the tune of Rs 2373 cr.

 

Rupee appreciated 9 paise to end at 73.23/$.

 

For the week, Sensex and Nifty climbed 1.9% and 2.3%.

 

TCS started the earnings season with a bang as results beat estimates on all counts. Constant currency revenue growth stood at 4.1% while dollar revenue grew by 5.1%. Margins improved to 26.6% and were best in 5-years. The management also guided for a double digit growth next year.

 

OUTLOOK

 

Today, Nikkei is shut while Hang Seng and Shanghai are up 0.6% and 0.1% respectively. SGX Nifty is suggesting around 50 points higher start for our market.

 

In Friday's report we had said that 14300 continued to upside level to eye, upon crossover of which, 14400-14450 would be the next target zone.

 

Nifty touched a high of 14367 before closing at 14347. The benchmark is set to open near 14400 today.

 

14450 is the next upside target, upon crossover of which 14625 would be the next level to eye.

 

34-hour average, placed around 14180, would work as the immediate support, upon breach of which, 14100, where a trendline adjoining recent bottoms on the hourly chart is placed, would be the next support to eye.

 

Meanwhile, trading longs should be held on to with the stop-loss of 14180.

 

14300 CONTINUES TO BE UPSIDE LEVEL TO EYE; 14000 CONTINUES TO BE IMMEDIATE SUPPORT

 

14300 CONTINUES TO BE UPSIDE LEVEL TO EYE; 14000 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Nasdaq surged 2.6% while S & P 500 and Dow rose 1.5% and 0.7% respectively to hit record closing highs, after Congress confirmed the election of Joe Biden as president.

 

Weekly claims totaled 787,000 for the week ended Jan. 2, less than the estimate of 815,000 and a slight decrease from the upwardly revised total of 790,000 for the previous week. Institute for Supply Management’s non-manufacturing activity index rose to 57.2 last month from 55.9 in November.

 

Minutes from the latest Fed meeting, released Wednesday, showed the central bank will give the public plenty of notice before cutting back on its bond-buying program.

 

Dollar index rose 0.53% to 89.785. US 10-year Treasury yield rose 4 basis points to 1.081%, its highest level since March 20. Spot gold fell 0.3% to $1,913.87 per ounce.

 

Brent as well as WTI crude rose 0.4% each to $54.52 and $50.86 per barrel respectively.

 

European markets rose 0.2%-0.7%. Euro zone economic sentiment improved in December, but inflation remained negative, coming in at -0.3% according to a flash estimate.

 

Meanwhile, Japan declared a state of emergency in Tokyo and three other areas in a bid to combat a rise in coronavirus infections.

 

AT HOME

 

After opening higher by nearly eight tenth of a percent, benchmark indices gave away also the gains through the session to end marginally in the red, extending the losing streak to second straight day. Sensex settled at 48093, down 80 points while Nifty lost 9 points to finish at 14137. Nifty mid-cap and small-cap indices however climbed 1.4% each, with the former extending the winning streak to seventh consecutive day while the later rising for the sixth day in last seven. BSE Metal and Telecom indices soared 3.7% and 3% respectively, becoming top gainers among the sectoral indices while FMCG and IT indices were the top losers, down 1.1% and 1% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 382 cr, 217 cr and 171 cr respectively. DIIs were net sellers to the tune of Rs 990 cr.

 

Rupee depreciated 22 paise to end at 73.32/$.

 

Government released first advance GDP estimates, which estimates GDP contraction of 7.7% in FY21 as compared to the growth rate of 4.2% in 2019-20.

 

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.5% and 0.3% respectively while Shanghai is down half a percent. SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 14300 continued to be upside level to eye and had advised holding on to long positions with the stop-loss of 14000.

 

Nifty, after touching a high of 14256 in the initial trade, slipped to end at 14137 and is set to open near 14200 today.

 

14300 continues to upside level to eye, upon crossover of which, 14400-14450 would be the next target zone.

 

14000 continues to be immediate support, with the stop-loss of which, trading longs should be held on to.

 

TCS will report its quarterly earnings after market hours today.