NIFTY RETREATS AFTER ACHIEVING 18342 TARGET

 

NIFTY RETREATS AFTER ACHIEVING 18342 TARGET

 

WORLD MARKETS

 

US indices nosedived 1.5%-2.6%, with Nasdaq closing at its lowest level in three months, as bond yields surged.

 

US 10-year treasury yield rose 6 bps to 1.875%, hitting 2-year high. The 2-year rate topped 1% for the first time in two years. Dollar index climbed half a percent to 95.72. Spot gold slipped 0.3% to $1,814.34 per ounce.

 

Goldman Sachs' plunged 7% after earnings missed expectations.

 

Oil hit seven-year high on the back of fresh tensions in Middle East. Brent crude futures advanced 1.19% to $87.51 per barrel, while U.S. West Texas Intermediate futures settled 2.43% higher at $85.43 per barrel.

 

European markets fell 0.6%-1%. ZEW economic sentiment survey for Germany came in at 51.7 points for January versus 29.9 in December and much above the projected reading of 32.0.

 

AT HOME

 

After a positive start, Sensex and Nifty nosedived in late noon trade to end lower by 0.9% and 1.1% respectively. Sensex settled at 60754, down 554 points while Nifty lost 195 points to finish at 18113. Nifty mid-cap and small-cap indices tumbled 2.1% and 2.4% respectively. This was the biggest percentage cut for Nifty, Nifty mid-cap and Nifty small-cap indices after 20^th December, 2021. Except 0.2% higher Bankex, all the BSE sectoral indices ended in red, with Basic Materials index being the top loser, down 2.8%, followed by 2.6% lower Realty and Telecom indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1255 cr, 205 cr and 567 cr respectively. DIIs were net sellers to the tune of Rs 220 cr.

 

Rupee depreciated 33 paise to end at 74.57/$.

 

OUTLOOK

 

Today morning, Nikkei is down 1.8%, Shanghai is marginally in the red while Hang Seng is up 0.2%. SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 18342, the top made on 27th October, continued to be next upside level to eye, upon crossover of which, 18604, the all-time high made on 19th October, would be the next big target. We had also said that 18050 continued to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a high of 18350, plunged to 18085 before closing at 18113.

 

18050 continues to be immediate support on the hourly chart, upon breach of which, 17700-17650 would be the next support zone; 18350, the top made yesterday, is the immediate hurdle.

 

For Banknifty, 38855, the top made yesterday, is the immediate hurdle, upon crossover of which, 39250, the 67% retracement level of the entire 41830-34440 fall, would be the next upside target; 38000 is the immediate support on the hourly chart, upon breach of which, 37430 and 37060 would be the next downside levels to eye.

 

18604 ABOVE 18342; 18050 CONTINUES TO BE IMMEDIATE SUPPORT

 

18604 ABOVE 18342; 18050 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US markets were shut yesterday due to the Martin Luther King holiday.

 

European markets gained 0.3%-0.9%.

 

Data earlier showed Chinese economy grew by 4% in fourth quarter, topping a 3.6% expectation. For the full year, growth stood at 8.1%, slightly below the market’s expectation for around 8.4%.

 

The People’s Bank of China (PBOC) lowered the interest rate on $110 billion worth of one-year medium-term loans by 10 basis points.

 

Dollar index inched up 0.1% to 95.25. Spot gold was steady at $1,819.34 per ounce.

 

Brent crude futures gained 9 cents, or 0.1%, to $86.15 a barrel while WTI crude was up 29 cents, or 0.4%, at $84.11 a barrel.

 

AT HOME

 

Sensex and Nifty gained 0.1% and 0.3% respectively to close at the highest level after 26th October and 19th October respectively. Sensex settled at 61308, up 85 points while Nifty added 52 points to finish at 18308. Nifty mid-cap and small-cap indices gained 0.2% and 0.6% respectively. BSE Auto and Utilities indices climbed 2% and 1.5% respectively, becoming top gainers among the sectoral indices while Healthcare index and Bankex were the top losers, down 0.8% and 0.3% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 855 cr, 828 cr and 977 cr respectively. DIIs were net sellers to the tune of Rs 115 cr.

 

Rupee depreciated 9 paise to end at 74.24/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-0.8% and SGX Nifty is suggesting a flat start for our market.

 

In yesterday's report we had said that 18342, the top made on 27th October, 2021 was the next upside level to eye and had advised trailing stop-loss in longs to 18050.

 

Nifty touched a high of 18321 before closing at 18308.

 

18342, the top made on 27th October, continues to be next upside level to eye, upon crossover of which, 18604, the all-time high made on 19th October, would be the next big target; 18050 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 38851, the top made last week, is the immediate hurdle, upon crossover of which, 39250, the 67% retracement level of the entire 41830-34440 fall, would be the next upside target. 38000 is the immediate support on the hourly chart, upon breach of which, 37430 and 37060 would be the next downside levels to eye.

 

Bajaj Finance will report its quarterly earnings today.

TRAIL STOP-LOSS TO 18050

 

TRAIL STOP-LOSS TO 18050

 

WORLD MARKETS

 

Dow fell 0.6% as major bank stocks declined after their earnings reports while S & P 500 and Nasdaq gained 0.1% and 0.6% respectively

 

JP Morgan Chase shares plunged 6% as CFO Jeremy Barnum warned that the company would likely miss a key profit target in the next two years. Citigroup’s stock fell nearly 1.3% after the bank beat revenue estimates but showed a 26% decline in profits.

 

Retail sales were down 1.9% in December, a worse reading than the 0.1% drop expected. January’s preliminary consumer sentiment reading from the University of Michigan came in lower than expected as Americans reported higher long-term inflation expectations. Business inventories for November came in higher than expected, but industrial production disappointed, declining 0.1% compared to a projected 0.2% gain.

 

US 10-year treasury yield jumped more than 7 bps to 1.784%. The U.S. dollar index rose 0.3% to 95.157, snapping a 3-day losing streak. Spot gold was down 0.3% at $1,816.22 per ounce.

 

Brent crude settled $1.59, or 1.9%, higher at a 2-1/2-month high of $86.06 a barrel and WTI crude gained $1.70, or 2.1%, to $83.82 per barrel.

 

European markets fell 0.3%-1%. U.K. economy grew by 0.9% in November, vastly outstripping expectations and taking its GDP above its pre-pandemic level for the first time. Germany’s economy grew 2.7% in 2021 after a 4.6% plunge in 2020.

 

For the week, Nasdaq and S & P 500 fell 0.3% each while Dow was down 0.9%. Brent and WTI crude surged 5.4% and 6.3% respectively.

 

AT HOME

 

Benchmark indices ended marginally in the red, snapping 5-day winning streak. Sensex settled at 61223, down 12 points while Nifty lost 2 points to finish at 18255. Nifty mid-cap index was flat while small-cap index gained 0.8%. BSE Capital Goods and Realty indices were the top gainers among the sectoral indices, up 1.4% and 1.1% respectively while Telecom and FMCG indices were the top losers, down 1.2% and 0.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1598 cr, 626 cr and 896 cr respectively. DIIs were net buyers to the tune of Rs 371 cr.

 

Rupee depreciated 27 paise to end at 74.15/$.

 

For the week, Sensex and Nifty gained 2.5% each, extending the winning streak to fourth consecutive week and closing at the highest level after the week ended 14th October, 2021.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 0.6% and 0.3% respectively while Hang Seng is down 0.6%. SGX Nifty is suggesting around 80 points lower start for our market.

 

In Friday's report we had said that 18342, the top made on 27th October, continued to be the next upside level to eye, upon crossover of which, 18604, the top made in October 2021, would be the next major target. We had also said that immediate support on the hourly chart had moved up to 17950, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a low of 18119, rebounded to end at 18255 and is set to open below 18200 today.

 

Immediate support on the hourly chart has moved up to 18050, upon breach of which, 17700-17650 would be the next support zone.18342, the top made on 27th October, 2021 is the next upside level to eye, upon crossover of which, 18604, the all-time high made on 19th October, would be the next big target. Meanwhile, trading longs can be held on to with the stop-loss of 18050.

 

For Banknifty, 38851, the top made during the week, is the immediate hurdle, upon crossover of which, 39250, the 67% retracement level of the entire 41830-34440 fall, would be the next upside target. 38000 is the immediate support on the hourly chart, upon breach of which, 37430 and 37060 would be the next downside levels to eye.

 

Ultratech Cement will report its quarterly earnings today.

 

U.S. markets will remain closed today for Martin Luther King Jr. Day.

 

TRAIL STOP-LOSS TO 17950

 

TRAIL STOP-LOSS TO 17950

 

WORLD MARKETS

 

US indices plunged 0.5%-2.5%, with Nasdaq leading the losses as technology shares came under pressure.

 

The producer price index rose 0.2% month over month in December, which was lower than the 0.4% economists were expecting. Y-o-Y increase stood at 9.7%. Jobless claims filed during the week ended Jan. 8 came in at 230,000, the expected figure being 200,000. However, continuing unemployment claims declined.

 

US 10-year treasury yield fell 2 bps to 1.706%. Dollar index eased 0.1% to 94.85. Gold inched lower by 0.2% to $1822 an ounce.

 

WTI crude settled 52 cents, or 0.63%, lower at $82.12 per barrel and Brent settled 0.24% lower at $84.47 per barrel.

 

In Europe, FTSE and DAX saw marginal gains while CAC fell half a percent.

 

AT HOME

 

Benchmark indices ended modestly higher after a rangebound but choppy session, extending the winning streak to fifth straight day. Sensex settled at 61235, up 85 points while Nifty added 45 points to finish at 18257. Nifty mid-cap and small-cap indices gained 0.6% each. BSE Metal index soared 3.9%, becoming top gainer among the sectoral indices, followed by 1.6% higher Capital Goods index. Bankex and Realty indices were the top losers, down 0.7% each.

 

FIIs net sold stocks and stock futures worth Rs 1391 cr and 535 cr respectively but net bought index futures worth Rs 1473 cr. DIIs were net buyers to the tune of Rs 1065 cr.

 

Rupee appreciated 3 paise to end at 73.88/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-1.9% and SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 18342, the top made on 27th October, was the next upside level to eye and had advised trailing the stop-loss to 17900.

 

Nifty, after touching a high of 18272, closed at 18257.

 

18342, the top made on 27th October, continues to be the next upside level to eye, upon crossover of which, 18604, the top made in October 2021, would be the next major target.

 

Immediate support on the hourly chart has moved up to 17950, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, above 38851, 39250 the 67% retracement levels of the entire 41830-34018 fall, would be the next upside levels to eye; 37940 continues to be immediate support.

 

18342, 18604 ARE NEXT LEVELS TO EYE; TRAIL STOP-LOSS TO 17900

 

18342, 18604 ARE NEXT LEVELS TO EYE; TRAIL STOP-LOSS TO 17900

 

WORLD MARKETS

 

US indices inched up 0.1%-0.3% after a key inflation report showed a historic gain but largely matched expectations.

 

December CPI surged 7% y-o-y for its biggest jump since 1982, but was in-line with expectations. The monthly increase, at 0.5%, was slightly hotter than expected. Core CPI, which excludes food and energy prices, increased 5.5% y-o-y and 0.6% from the previous month. That compared to estimates of 5.4% and 0.5%.

 

US 10-year treasury yield were little changed at 1.736%. Dollar index tumbled 0.6% to 94.987, its lowest in two months. Gold inched up a fourth of a percent to $1826 an ounce.

 

Oil prices hit two-month highs with Brent rising $1.24, or 1.5%, to $84.96 per barrel and WTI surgind 2%, or $1.62, to $82.84 per barrel.

 

European markets gained 0.4%-0.8%.

 

AT HOME

 

Benchmark indices climbed 0.9% each, extending the winning streak to fourth consecutive day and closing at the highest level after 26th October, 2021. Sensex settled at 61150, up 533 points while Nifty finished at 18212, up 156 points. Nifty mid-cap and small-cap indices added 1.2% and 0.9% respectively. Except marginally lower Consumer Durables and Healthcare indices, all the BSE sectoral indices ended in green, with Telecom index on the top, up 3.2%, followed by 2.2% higher Power and Utilities indices.

 

FIIs net sold stocks and index futures worth Rs 1002 cr and 142 cr respectively but net bought stock futures worth Rs 584 cr. DIIs were net buyers to the tune of Rs 1332 cr.

 

Rupee ended flat at 73.91/$.

 

Industrial growth fell to a nine-month low of 1.4% in November while retail inflation accelerated to a six-month high of 5.59% in December.

 

Infosys reported expectation beating 7% q-o-q growth in dollar revenue and also raised FY22 revenue growth guidance to 19.5%-20% from 16.5%-17.5% earlier. TCS too reported better-than-expected 4.5% dollar revenue growth and announced Rs 18000 cr buyback at Rs 4500 per share. Wipro's 3% growth however, was lower than expectation.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are down 0.8% and 0.2% respectively while Hang Seng is flat. SGX Nifty is suggesting around 90 points higher start for our market.

 

In yesterday's report we had reiterated the view that 18210, the top made in November, continued to be next upside target and that immediate support on the hourly chart had moved up to 17880, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to 18228 before closing at 18212, achieving above mentioned target and vindicating our view. The benchmark is set to open near 18300 today.

 

18342, the top made on 27th October, is the next upside level to eye, upon crossover of which, 18604, the top made in October 2021, would be the next major target.

 

Immediate support on the hourly chart has moved up to 17900, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 39250 the 67% retracement levels of the entire 41830-34018 fall, is the next upside levels to eye; Immediate support has moved up to 37940.

 

18342 ABOVE 18210; TRAIL STOP-LOSS TO 17880

 

18342 ABOVE 18210; TRAIL STOP-LOSS TO 17880

 

WORLD MARKETS

 

After dipping nearly three forth of a percent in the initial trade, US indices reversed to end with gains of 0.5%-1.4%, as Fed Chair Powell's comments were less hawkish than expected. S & P 500 snapped 5-session losing streak.

 

Powell’s testimony signaled that while the Fed will be normalizing policy, policymakers were still debating approaches to reducing the Fed’s balance sheet, and “it is a long road” to anything close to restrictive policy.

 

US 10-year treasury yield eased 2 bps to 1.74%. Dollar index slipped 0.4% to 95.60. Gold jumped 1.2% to $1821 an ounce.

 

Brent crude climbed 3.5% to settle at $83.72 per barrel, its highest since early November and WTI gained 3.8% to $81.22 per barrel, also its highest since mid-November.

 

European markets gained 0.6%-1.1%.

 

AT HOME

 

Benchmark indices rose nearly a third of a percent, extending the winning streak to third straight day. Sensex settled at 60616, up 221 points while Nifty added 52 points to finish at 18055. Nifty mid-cap and small-cap indices inched up 0.1% each. BSE Power and Utilities indices climbed 1.8% and 1.7% respectively, becoming top gainers among the sectoral indices, while, Metal index tumbled 2.8% to become top loser, followed by 0.9% higher Basic Materials index.

 

FIIs net bought stock worth Rs 112 cr but net sold index futures and stock futures worth Rs 347 cr and 1193 cr respectively. DIIs were net buyers to the tune of Rs 379 cr.

 

Rupee appreciated 14 paise to end at 73.90/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-1.6% and SGX Nifty is suggesting around 100 points higher start for our market.

 

Readers would recall that we had turned our view bullish ever since 17155 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

In yesterday's report we had reiterated the view that 18210, the top made in November, was the next upside target and that immediate support on the hourly chart had moved up to 17800, with the stop-loss of which, trading longs could be held on to.

 

Nifty touched a high of 18081 before closing at 18055. The benchmark is set to open near 18150 today.

 

18210, the top made in November, continues to be the next upside target, upon crossover of which, 18342, the top made on 27th October, would be the next upside level to eye; Immediate support on the hourly chart has moved up to 17880, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 38845 and 39250, the 61.8% and 67% retracement levels of the entire 41830-34018 fall, continue to be next upside levels to eye; 37550 continues to be immediate support.

 

Infosys, TCS and Wipro will report their quarterly results today.

 

TRAIL STOP-LOSS TO 17800

 

TRAIL STOP-LOSS TO 17800

 

WORLD MARKETS

 

After falling sharply in the initial trade, US indices staged a smart rebound to end flat to modestly lower. Nasdaq erased 2.7% loss to end marginally higher, snapping a four-day losing streak.

 

US 10-year treasury yield, after touching a high of 1.808%, ended flat at 1.762%. Dollar index inched up 0.2% to 95.95. Gold gained 0.3% to reach $1801 an ounce.

 

Brent crude declined 88 cents, or 1.1%, to $80.87 per barrel and WTI crude settled 67 cents, or 0.85%, lower at $78.23 per barrel.

 

European markets fell 0.5%-1.4%.  Euro zone unemployment fell to 7.2% in November from 7.3% in October, while the Sentix index showed euro zone investor morale has risen in January from 13.5 to 14.9, ahead of expectations.

 

AT HOME

 

Benchmark indices soared 1.1% each, closing in green for the sixth of the past seven sessions and ending at the highest level after 15th November. Sensex settled at 60395, up 650 points while Nifty added 190 points to finish at 18003. Nifty mid-cap and small-cap indices rose 0.8% and 1.3% respectively. All the BSE sectoral indices ended in green, with Capital Goods index on the top, up 2.3%, followed by 1.9% each higher Realty and Industrials indices.

 

FIIs net sold stocks and index futures worth Rs 124 cr and 539 cr respectively but net bought stock futures worth Rs 560 cr. DIIs were net buyers to the tune of Rs 482 cr.

 

Rupee appreciated 26 paise to end at 74.04/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 0.9% and 0.4% respectively while Shanghai is little changed. SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that upon crossover of 17944, 18210, the top made in November, would be the next upside target to eye and had advised holding on to long positions with the stop-loss of 17560.

 

Nifty surged to touch a high of 18017 before closing at 18003.

 

18210, the top made in November, continues to be the next upside target; Immediate support on the hourly chart has moved up to 17800, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 38845 and 39250, the 61.8% and 67% retracement levels of the entire 41830-34018 fall, continue to be next upside levels to eye; Immediate support has moved up to 37550.