16600 BELOW 16782; 17400 CONTINUES TO BE IMMEDIATE HURDLE

 

16600 BELOW 16782; 17400 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

After rising more than a percent and half in the initial trade, US indices plunged to end with deep cuts of 1.2%-1.8% as the Centers for Disease Control and Prevention confirmed the first case of omicron in the U.S.

 

On the data front, ADP’s private payroll data for November showed addition of 534,000 jobs, above expectations of 506,000. IHS Markit manufacturing PMI for November came in at 58.3, lower than expected. October construction spending also rose slower than expected, but there was a positive historical revision to help offset the miss.

 

US 10-year treasury yield fell nearly 3 bps to 1.407%. Dollar index inched up 0.1% to  96.02. Spot gold was up 0.4% to $1,780.05 per ounce.

 

After rising more than 3%, oil prices reversed to end lower. Brent crude futures slid 0.2% to $69.08 per barrel while WTI crude futures fell 0.4% to $65.90 per barrel.

 

European markets rose 1.5%-2.5%. November’s final manufacturing PMI for the euro zone came in at 58.4, a slight improvement on October’s 58.3 but short of an initial 58.6 flash estimate.

 

AT HOME

 

Benchmark indices ended higher by 1.1% each after a range bound but choppy session. Sensex settled at 57684, up 620 points while Nifty added 183 points to finish at 17167. Nifty mid-cap and small-cap indices gained 1% and 0.1% respectively.  BSE Metal and Energy indices climbed 2.4% and 2% respectively, becoming top gainers among the sectoral indices, while Healthcare index slipped 1.4%, becoming the top loser, followed by 0.5% lower Consumer Durables index.

 

FIIs net sold stocks worth Rs 2766 cr but net bought index futures and stock futures worth Rs 930 cr and 1926 cr respectively. DIIs were net buyers to the tune of Rs 3467 cr.

 

Rupee appreciated 25 paise to end at 74.91/$.

 

India's November manufacturing PMI improved to ten month high of 57.6 from 55.9 in October.

 

GST collection for November stood at Rs 1.31 lk cr, which is the 2nd highest figure since implementation of GST.

 

India posted a record trade deficit of $23.27 bn in November as imports surged 57% to $53.15 bn while exports rose 26.5% to $29.88 bn.

 

Hero MotoCopr sales plunged 40% to 3.19 lk units. Royal Enefield sales were 19% lower at 51654 units. Maruti total sales fell 9.2% y-o-y to 1.39 lk units. Bajaj Auto sales fell 10% to 3.79 lk units. M & M auto sales dipped 6.2% to 40102 units while tractor sales fell 15% to 27681 units. Tata Motors sold 62192 units, a growth of 25%. Eicher Motors CV sales rose 3.1% to 3184 units. Ashok Leyland sales fell 2% to 10480 units. Escorts total sales were down 30% at 7116 units. TVS Motor sales fell 17.2% to 2.72 lk units.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.5% and 0.1% respectively while Nikkei is down 0.6%. SGX Nifty is suggesting around 80 points lower start for our market.

 

In yesterday's report we had said that 16782, the low made Monday, continued to be immediate support while 17400 continues to be immediate hurdle.

 

Nifty surged to 17213 before closing at 17167. The benchmark is set to open below 17100 today.

 

17400 continues to be immediate hurdle for Nifty; 16782, the low made Monday, continues to be immediate support.

 

37050 continues to be immediate hurdle for Banknifty; 35328, the low made Monday, continues to be immediate support.

 

16600 BELOW 16782; 17400 CONTINUES TO BE IMMEDIATE HURDLE

 

16600 BELOW 16782; 17400 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 plunged 1.9% each while Nasdaq fell 1.6% over fears about the new Covid variant, omicron, and the Federal Reserve mulling a quicker-than-planned taper.

 

Moderna CEO said that he expects existing Covid vaccines to be less effective against the new strain.

 

In a testimony before the U.S. Senate Banking Committee, Fed Chair Jerome Powell said the Fed likely will discuss speeding up its taper of large-scale bond purchases at its next meeting.

 

US 10-year treasury yield dropped by 8.3 basis points to 1.446%. Spot Gold fell 0.7% to $1,773.21 per ounce.

 

Brent crude futures fell $2.87, or 3.9%, to $70.57 per barrel while WTI crude futures settled 5.4%, or $3.77, lower at $66.18 per barrel.

 

European markets fell 0.7%-1.8%.  Euro zone inflation surged to a record 4.9% annually in November, above consensus forecasts. France’s final third-quarter GDP growth was confirmed at 3% q-o-q, while inflation rose to an annual rate of 3.4% in November, its highest since September 2008.

 

For the month, Dow and S & P 500 fell 3.7% and 0.8% respectively while Nasdaq gained 0.25%.

 

AT HOME

 

After rising more than a percent and half in first hour and half, benchmark indices nosedived nearly 2% from the top of the day to end lower by about four tenth of a percent. Sensex settled at 57065, down 196 points while Nifty lost 70 points to finish at 16983. Nifty mid-cap and small-cap indices however gained 0.5% and 1.6% respectively. BSE Metal index tumbled 2.3%, becoming top loser among the sectoral indices, followed by 1% lower Energy index. Consumer durables index was the top gainer, up 2.3%, followed by 1% higher IT index.

 

FIIs net sold stocks worth Rs 5445 cr but net bought index futures and stock futures worth Rs 1589 cr and 3348 cr respectively. DIIs were net buyers to the tune of Rs 5350 cr.

 

Rupee depreciated 6 paise to end at 75.16/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 1.2% and 0.3% respectively while Shanghai is little changed. SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 17400 continued to be immediate hurdle while 16782, the low made Monday, was the immediate support, below which, 16600 would be the next downside level to eye.

 

Nifty, after touching a high of 17325, plunged to end at 16983.

 

16782, the low made Monday, continues to be immediate support, below which, 16600 would be the next downside level to eye.

 

17400 continues to be immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

35328, the low made Monday, is the immediate support for Banknifty, below which 35000-34800 would be the next support zone to eye; 37050 is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

Auto companies will report their November sales numbers today.

 

16600 BELOW 16782; 17400 CONTINUES TO BE IMMEDIATE HURDLE

 

16600 BELOW 16782; 17400 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices gained 0.7%-1.9% with Nasdaq on the top, as concerns over the newly discovered omicron Covid variant appeared to ease.

 

Covid symptoms linked to the omicron variant have been described as “extremely mild” by the South African doctor who first raised the alarm over the new strain. Still, the WHO said it will take weeks to understand how the variant may affect diagnostics, therapeutics and vaccines.

 

US President Biden said economic lockdowns are currently off the table and there will be no new travel restrictions. Fed Chair Powell believes that the omicron variant poses a threat to the central bank’s mandate to achieve stable prices and maximum employment, he said in remarks he plans to deliver to Senate lawmakers on Tuesday.

 

US 10-year treasury yield rose by 2 basis points to 1.50%. Dollar index rose 0.1% to 96.357. Spot gold fell 0.4% to $1,784.41 per ounce.

 

WTI crude gained $1.80, or 2.6%, to settle at $69.95 per barrel and Brent crude settled 1% higher at $73.44 per barrel.

 

European markets gained 0.2%-0.9%. Euro zone business climate and economic sentiment index for November fell to 117.5 points from 118.6 in October, while inflation expectations pulled back slightly too.

 

AT HOME

 

After falling nearly a percent and half in the initial trade, Snesex and Nifty recouped all the losses and rose some more to end higher by 0.3% and 0.2% respectively. Sensex settled at 57260, up 153 points while Nifty added 27 points to finish at 17054. Nifty mid-cap and small-cap indices however ended with deep cuts of 1.4% and 2.6% respectively. BSE Utilities index plunged 2.6%, becoming top loser among the sectoral indices, followed by 2% lower Realty and Power indices. Teck and IT indices were the top gainers, up two third of a percent each.

 

FIIs net sold stocks worth Rs 3332 cr but net bought index futures and stock futures worth Rs 2152 cr and 1342 cr respectively. DIIs were net buyers to the tune of Rs 4611 cr.

 

Rupee depreciated 23 paise to end at 75.10/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 1.2% and 0.5% respectively while Hang Seng is down 0.4%. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 16800-16850 was the next support zone and had advised holding on to short positions with the stop-loss of 17400.

 

Nifty plunged all the way to 16782, achieving the above mentioned target and rebounded from there to end at 17053.

 

17400 contiues to be immediate hurdle.

 

16782, the low made yesterday, is the immediate support, below which, 16600 would be the next downside level to eye.

 

35328, the low made yesterday, is the immediate support for Banknifty, below which 35000 would be the next downside level to eye; 37050 is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

STAY SHORT WITH THE STOP-LOSS OF 17400

 STAY SHORT WITH THE STOP-LOSS OF 17400

 

WORLD MARKETS

 

US indices nosedived 2.2%-2.5% as the World Health Organization labeled the omicron Covid strain a “variant of concern.” The Dow posted its worst day since October 2020

 

The variant was first reported to the WHO from South Africa and has been found in the U.K., Israel, Belgium, the Netherlands, Germany, Italy, Australia and Hong Kong, but not yet in the U.S. Many countries, including the U.S., moved to restrict travel from southern Africa.

 

US 10-year treasury yield dropped by more than 15 bps to 1.485%. Dollar index fell 0.74% to 96.07. Gold, after spiking to $1815, eased to end 0.2% higher at $1791 per ounce.

 

U.S. oil settled 13.1%, or $10.24, lower at $68.15 per barrel for its worst day since April 2020.  Brent crude futures slid 11.6% to settle at $72.72 per barrel.

 

European markets tumbled 3.6%-4.8%

 

For the week, US indices fell 2%-3.5% with Nasdaq leading the losses. Brent and WTI fell nearly 7% and 10% respectively for their fifth straight week of losses.

 

AT HOME

 

Benchmark indices nosedived 3%, suffering the worst fall since 12th April and closing at the lowest level since 30 august 2021. Sensex settled at 57107, down 1688 points while Nifty lost 510 points to finish at 17026. Nifty mid-cap and small-cap indices plunged 3.2% and 2.9% respectively. Except 1.2% higher Healthcare index, all the BSE sectoral indices ended in red, with Realty and Metal indices leading the losses, down 6.4% and 5.4% respectively.

 

FIIs net sold stocks and index futures worth Rs 5786 cr and 3271 cr respectively but net bought stock futures worth Rs 530 cr. DIIs were net buyers to the tune of Rs 2294 cr.

 

Rupee depreciated 36 paise to end at 74.87/$.

 

For the week, Sensex and Nifty tumbled 4.2% each, which is the worst weekly cut in 10 months.

 

OUTLOOK

 

Today morning, Shanghai and Nikkei are down 0.5% and 0.3% respectively while Hang Seng is marginally higher. SGX Nifty is suggesting around 30 points higher start for our market.

 

In Friday's report we had said that 17216, the low made Tuesday, continued to be important immediate support and had advised holding on to short positions with the stop-loss of 17850.

 

Nifty broke 17216 and plunged all the way to 16985 before closing at 17026.

 

16800-16850 is the next support zone, below which, 16600, which is the target of bearish Head & Shoulder formation breakdown, would be the next level to eye. 17400 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 200-DMA, placed around 35700, is the important immediate support to eye. If this 

17216 CONTINUES TO BE IMMEDIATE SUPPORT; 17850 IMMEDIATE HURDLE

 

17216 CONTINUES TO BE IMMEDIATE SUPPORT; 17850 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US markets were shut yesterday for the Thanksgiving holiday.

 

European markets gained 0.2%-0.4% as they continue to monitor political developments and the Covid crisis. In Germany, a new coalition government deal between the Social Democrats, Greens and Free Democrats was announced on Wednesday. On covid front, Italy announced Wednesday evening that it will introduce tighter Covid measures and Germany has narrowly avoided another lockdown with the incoming coalition reportedly wanting to wait and see if tighter Covid passport rules help to alleviate rising cases there.

 

On the data front, Germany’s third-quarter GDP grew by 1.7% quarter-on-quarter, marginally below expectations. Germany’s GfK consumer sentiment index fell to -1.6 points from a revised 1.0 in November.

 

US 10-year treasury yield fell 5 bps to 1.5927%. Dollar index was little changed at 96.789. Spot gold rose 0.2% to $1,792.05 per ounce.

 

WTI crude futures fell 9 cents, or 0.1%, to $78.30 a barrel and Brent futures eased 5 cents to $82.20 a barrel.

 

World Health Organization said it is monitoring a new Covid variant with “a large number of mutations.” A special meeting is scheduled today to discuss its implications for vaccines and treatments.

 

AT HOME

 

After falling a third of a percent in the intial trade, benchmark indices surged a percent to end higher by nearly three fourh of a percent. Sensex settled at 58795, up 454 points while Nifty added 121 points to finish at 15536. Nifty mid-cap and small-cap indices gained 0.6% and 0.8% respectively. BSE Energy index soared 4.5%, becoming top gainer among the sectoral indices, followed by 1.9% higher Realty index. Capital Goods and Auto indices were the top losers, down 0.5% and 0.4% respectively.

 

FIIs net sold stocks worth Rs 2301 cr but net bought index futures and stock futures worth Rs 598 cr and 1482 cr respectively. DIIs were net buyers to the tune of Rs 1368 cr,

 

Rupee depreciated 11 paise to end at 74.51/$.

 

For the November derivative series, Nifty fell 1.8%.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-2.2% with Nikkei leding the losses and SGX Nifty is suggesting around 120 points lower start for our market.

 

In yesterday's report we had said that 17216, the low made Tuesday, which also coincided with 20-week moving average, continued to be important immediate support while 17850 continues to be immediate hurdle, with the stop-loss of which, positional shorts can be held on to.

 

Nifty touched a high of 17564 before closing at 17536 but is set to open below 17450 today.

 

17216, the low made Tuesday, which also coincided with 20-week moving average, continues to be important immediate support to eye; 17850 continues to be immediate hurdle, with the stop-loss of which, positional shorts can be held on to.

 

36647, the low made Tuesday, is the immediate support for Banknifty, below which, 34-week moving average, placed around 35850, would be the next downside level to eye; 38050 is the immediate hurdle.

17216 CONTINUES TO BE IMMEDIATE SUPPORT; 17850 IMMEDIATE HURDLE

 

17216 CONTINUES TO BE IMMEDIATE SUPPORT; 17850 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow ended little changed while S & P 500 and Nasdaq gained 0.2% and 0.4% as bond yields took a breather, allowing tech stocks to recover.

 

The meetings from the latest Fed meeting showed that the central bankers were ready to accelerate the timetable for slowing asset purchases and raising the benchmark funds rate if inflation remains high.

 

Weekly jobless claims came in at 199,000, the lowest level in more than 50 years. GDP growth for the third quarter was revised up slightly to 2.1%, though economists expected it to rise to 2.2%. Personal income and consumer spending both rose more than expected in October. However durable goods orders showed an unexpected decline in October. Core personal consumption expenditures, the Fed’s preferred inflation measure, was up 4.1% y-o-y for October, matching estimates.

 

US 10-year treasury yield eased 2.7 bps to 1.638%. Dollar index rose 0.4% to 96.84. Gold ended little changed at $1788 per ounce.

 

Brent crude declined 6 cents to settle at $82.25 per barrel, while WTI crude settled 11 cents lower at $78.39 per barrel.

 

In Europe, FTSE rose 0.3%, CAC was flat while DAX fell 0.4%. Eurozone IHS Markit flash composite PMI climbed to 55.8 in November from 54.2 in October, outstripping expectations for a drop to 53.2. Germany’s Ifo business climate index fell in November, dropping to 96.5 from October’s 97.7. Meanwhile, Germany is considering stricter measures amid a surge in covid cases there, and France recorded more than 30,000 new daily infections on Tuesday for the first time since August.

 

AT HOME

 

After rising half a percent, benchmark indices tumbled a percent from the top in late noon trade to end lower by half a percent. Sensex settled at 58340, down 323 points while Nifty lost 88 points to finish at 17415. Nifty mid-cap index fell 0.4% while small-cap index rose 0.6%. BSE IT and Auto indices slipped 1.2% each, becoming top losers among the sectoral indices while Oil & Gas index was the top gainer, up 0.8%, followed by half a percent higher Bankex and Utilities indices.

 

FIIs net sold stocks and index futures worth Rs 5123 cr and 167 cr respectively but net bought stock futures worth Rs 1028 cr. DIIs were net buyers to the tune of Rs 3810 cr.

 

Rupee appreciated 3 paise to end at 74.39/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.6% while Hang Seng and Shanghai are off 0.4% and 0.2% respectively. SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 17216, the low made Tuesday, coincided with 20-week moving average and hence was the important immediate support to eye. We had also said that 17850 was the immediate hurdle on the hourly chart, with the stop-loss of which, positional shorts can be held on to.

 

Nifty, after touching a high of 17600, plunged to end at 17415.

 

17216, the low made Tuesday, which also coincided with 20-week moving average, continues to be important immediate support to eye.

 

17850 continues to be immediate hurdle, with the stop-loss of which, positional shorts can be held on to.

 

36647, the low made Tuesday, is the immediate support for Banknifty, below which, 34-week moving average, placed around 35850, would be the next downside level to eye; 38050 is the immediate hurdle.

 

U.S. markets will remain closed today for Thanksgiving.

NIFTY REBOUNDS FROM 20-WEEK MOVING AVERAGE

 

NIFTY REBOUNDS FROM 20-WEEK MOVING AVERAGE

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.6% and 0.2% respectively as energy and financial stocks rose while Nasdaq fell half a percent as tech shares sold off for the second day in a row.

 

Markit’s November flash PMI showed a decline month-over-month as the services segment came in lower than expected.

 

US 10-year treasury yield rose 5.4 bps to 1.679%. The dollar index was little changed at 96.461. Spot gold fell 0.9% to $1,788.51 per ounce.

 

WTI crude rose 2.5% to $78.67 per barrel while Brent crude stood at $82.31 per barrel, for a gain of 3.2%.

 

In Europe, FTSE inched up 0.2% but DAX and CAC tumbled 1.1% and 0.8% respectively.

 

AT HOME

 

After falling nearly a percent in the initial trade, Sensex and Nifty surged more than a percent and half from the bottom of the day to end higher by 0.3% and 0.5% respectively, snapping 4-day losing streak. Sensex settled at 58664, up 198 points while Nifty added 86 points to finish at 17503. Nifty mid-cap and small-cap indices climbed 1.8% and 1.9% respectively. Except 0.2% lower IT index, all the BSE sectoral indices ended in green, with Metal and Power indices leading the gains, up 3.5% and 3.2% respectively.

 

FIIs net sold stocks worth Rs 4477 cr but net bought index futures and stock futures worth Rs 297 cr and 3269 cr respectively. DIIs were net buyers to the tune of Rs 1412 cr.

 

Rupee depreciated 2 paise to end at 74.42/$.

 

OUTLOOK

 

Today morning, Nikkei is down 0.8%, Shanghai is flat while Hang Seng is up 0.2%. SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 17280, the low made Monday, was the immediate support, below which, 20-week moving average, placed around 17200, would be the next important support to eye.

 

Nifty broke 17280 and plunged all the way to 17216, but saw a smart rebound from there to end at 17503. The benchmark is set to open above 17550 today.

 

17216, the low made yesterday, coincided with 20-week moving average and hence is the important immediate support to eye.

 

17850 is the immediate hurdle on the hourly chart, with the stop-loss of which, positional shorts can be held on to.

 

36647, the low made yesterday, is immediate support for Banknifty, below which, 34-week moving average, placed around 35850, would be the next downside level to eye; 38150 is immediate hurdle.