16840-16966 IS THE RESISTANCE ZONE; 16250 MAJOR SUPPORT

 

16840-16966 IS THE RESISTANCE ZONE; 16250 MAJOR SUPPORT

 

WORLD MARKETS

 

US indices fell 1.1%-1.2%, extending the losing streak to third straight day, amid fears about the fast-spreading Covid omicron variant.

 

Omicron variant has now been found in at least 43 U.S. states and 90 countries. WHO said omicron is more contagious than any previous variant of Covid-19. It accounted for 73% of new infections in the U.S. last week.

 

US 10-year treasury yield rose 2 bps to 1.43%. Dollar index eased 0.2% to 96.50. Gold fell 0.4% to $1790 an ounce.

 

Brent crude futures declined $2, or 2.7%, to $71.52 per barrel, while WTI crude futures settled 3.7%, or $2.63, lower at $68.23 per barrel.

 

European markets fell 0.8%-1.9%. The Netherlands entered full lockdown on Sunday until mid-January. From Monday, only German citizens, residents and transit passengers will be allowed to enter Germany from the U.K., with all inbound travelers required to quarantine for 14 days irrespective of vaccination status. Travel restrictions were also imposed for arrivals from Denmark, Norway and France.

 

AT HOME

 

After plunging more than 3%, benchmark indices cut a third of the losses in late noon trade to end lower by just over 2%. Both the indices closed at the lowest level after 23rd August, marking a 4-month low. Sensex settled at 55822, down 1190 points while Nifty lost 371 points to finish at 16614. Nifty mid-cap and small-cap indices fell 3.7% and 4% respectively to close at the lowest level since 2nd September. All the BSE sectoral indices ended in red, with Realty and Oil & Gas indices leading the losses, down 4.7% and 3.8% respectively.

 

FIIs net sold stocks and index futures worth Rs 3565 cr and 1163 cr respectively but net bought stock futures worth Rs 739 cr. DIIs were net buyers to the tune of Rs 2764 cr.

 

Rupee appreciated 18 paise to end at 75.91/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-1.9% and SGX Nifty is suggesting around 150 points higher start for our market.

 

In yesterday's report we had said that 16782, the low made in November, was the next support to eye and that immediate resistance on the hourly chart had moved lower to 17250, with the stop-loss of which, trading shorts could be held on to.

 

Nifty, after plunging all the way to 16410, rebounded to end at 16614. The benchmark is set to open above 16750 today.

 

16840-16966, the gap created by yesterday's gap-down opening, would now act as the immediate resistance zone; 200-DMA, placed around 16250, is the next major support to eye; Meanwhile, trading shorts can be held on to with the stop-loss of 16966.

 

33800, 33100 are next supports for Banknifty; 35231-35535, the gap created by yesterday's gap-down opening, would act as the immediate resistance zone.

 

16782 IS THE NEXT SUPPORT; TRAIL STOP-LOSS TO 17250

 

16782 IS THE NEXT SUPPORT; TRAIL STOP-LOSS TO 17250

 

WORLD MARKETS

 

Dow and S & P 500 fell 1.5% and 1% respectively while Nasaq eased 0.1% on Friday amid worries about tighter monetary policy and the ongoing pandemic.

 

US 10-year treasury yield fell 1.5 bps to 1.409%. Dollar index climbed 0.7% to 96.67. Gold, after hitting a high of $1814, gave away all the gains to end flat at $1798 per ounce.

 

Brent crude settled 2% lower at $73.52 per barrel, while WTI crude futures dropped 2.1% to settle at $70.86 a barrel.

 

In Europe, except 0.1% higher FTSE, other markets fell between 0.6%-1.1%. U.K. employment data remained strong in November, with 257,000 staff added to payroll. U.K. Consumer Price Index rose by 5.1% y-o-y, up from 4.2% in October, the steepest incline for a decade and more than double the Bank of England’s target.

 

Data from China showed industrial output for November rose 3.8% year-on-year, more than the 3.5% increase in October, and better than the 3.6% expected. Retail sales in November rose 3.9% year-on-year, less than October’s 4.9% increase, and below the expectations of 4.6%.

 

For the week, Nasdaq plunged 3%, while the Dow and the S&P 500 slipped 1.7% and 1.9%, respectively. European markets fell 0.3%-0.9%. In Asia, Nifty and Hang Seng fell 3% each, Shanghai eased half a percent but Nikkei gained 1.3%. Brent and WTI oil fell 3% and 2.3% respectively. Gold rose 0.9% to $1798 per ounce, snapping 4-week losing streak.

 

The World Health Organization (WHO) said on Saturday that the Omicron strain has been found through testing in 43 out of 50 U.S. states and around 90 countries, and the number of cases is doubling in 1.5 to 3 days in areas with community transmission.

 

AT HOME

 

Benchmark indices nosedived 1.5% each, suffering the second worst fall of the month and also registering the second worst close of the month after that of 6th December. Sensex settled at 57011, down 889 points while Nifty lost 263 points to finish at 16985. Nifty mid-cap and small-cap indices plunged 2.4% and 2.5% respectively, suffering the worst fall after 26th and 29th November respectively. Except 1.3% and 0.8% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red, with Realty index being the top loser, down 3.8%, followed by 2.6% each lower Energy and Finance indices.

 

FIIs net sold stocks and index futures worth Rs 2070 cr and 471 cr respectively but net bought stock futures worth Rs 5 cr. DIIs were net buyers to the tune of Rs 1479 cr.

 

Rupee appreciated 1 paise to end at 76.08/$.

 

For the week, Sensex and Nifty fell 3% each to register the lowest weekly close after the week ended 27th August, 2021.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-0.9% and SGX Nifty is suggesting around 75 points lower start for our market.

 

In Friday's report we had said that 17050, around which a trendline adjoining recent bottoms was placed, continued to be next support to eye and that 17430 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts could be held on to.

 

Nifty plunged to 16966 before closing at 16985 and is set to open near 16900 today.

 

16782, the low made in November, is the next support to eye; Immediate resistance on the hourly chart has moved lower to 17250, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 35328, the bottom made in November, is the immediate support to eye, upon breach of which, 34800, where a trendline adjoining bottoms made in June and July is placed, would be the next support to eye; 36550 is the immediate hurdle on the hourly chart.

 

17050 CONTINUES TO BE NEXT SUPPORT; 17430 CONTINUES TO BE IMMEDIATE HURDLE

 

17050 CONTINUES TO BE NEXT SUPPORT; 17430 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

Nasdaq nosedived 2.5% while S & P 500 and Dow fell 0.9% and 0.1% respectively as investors lowered exposure to growth stocks in light of Federal Reserve turning more hawkish and expectations for higher interest rates rise.

 

Weekly jobless claims came in slightly higher than expected, and housing starts for November were stronger than economists projected after declining in the prior month. The IHS Markit flash reading for its December PMI showed a slower expansion in manufacturing and services.

 

Bank of England hiked interest rate from a historic low of 0.1% to 0.25% amid mounting inflation pressureon, marking the first hike since the pandemic started. The European Central Bank further cut its bond purchases but vowed to continue its unprecedented monetary policy support for the euro zone economy into 2022. It left the benchmark refinancing rate unchanged at 0%, while the rate on its marginal lending facility remained at 0.25%.

 

US 10-year treasury yield fell 5 bps to 1.41%. Dollar index fell a third of a percent to 96. Gold climbed 1.25% yo $1799 an ounce.

 

Brent crude futures gained $1.14, or 1.5%, to settle at $75.02 per barrel while WTI crude futures rose $1.51, or 2.13%, to settle at $72.38 per barrel.

 

European markets gained 1%-1.25%.

 

AT HOME

 

After opening with gains of just under a percent, benchmark indices plunged to slip in the negative territory but rebounded in last half an hour to end higher by a fifth of a percent, snapping 4-day losing streak. Sensex settled at 57901, up 113 points while Nifty added 27 points to finish at 17248. Nifty mid-cap and small-cap indices however ended lower by 0.7% and 0.8% respectively. BSE IT index climbed 1.25%, becoming top gainer among the sectoral indices, followed by 1% higher Energy and Teck indices. Power and Utilities indices were the top losers, down 1.1% and 1% respectively.

 

FIIs net sold stocks and stock futures worth Rs 1468 cr and 793 cr respectively but net bought index futures worth Rs 828 cr. DIIs were net buyers to the tune of Rs 1533 cr.

 

Rupee appreciated 14.50 paise to end at 76.0850/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-0.9% and SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 17050, around which a trendline adjoining recent bottoms was placed, continued to be next support to eye and that 17430 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts could be held on to.

 

Nifty, after touching a high of 17379, plunged to end at 17287.

 

17050, around which a trendline adjoining recent bottoms is placed, continues to be next support to eye; 17430 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

36200, around which a trendline adjoining recent bottoms is placed, is the next support for Banknifty below which 200-DMA, placed around 35750, would be the next downside level to eye; 37160, the top made yesterday, is the immediate hurdle.

 

17050 IS THE DOWNSIDE SUPPORT; 17430 IMMEDIATE HURDLE

 

17050 IS THE DOWNSIDE SUPPORT; 17430 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices soared 1.1%-2.2% after the Federal Reserve said it will accelerate the reduction of its monthly bond purchases and signaled three interest rate increases in 2022.

 

The U.S. central bank will be buying $60 billion of bonds each month starting January, half the level prior to the November taper and $30 billion less than it had been buying in December.

 

November’s retail sales rose by 0.3%, lower than the expected 0.8% rise.

 

US 10-year treasury yield rose about 2 basis points to 1.463%. Dollar index, after hitting a high of 96.906, reversed to end 0.24% lower at 96.328. Gold, after falling nearly a percent to $1753, rebounded to end higher by a third of a percent at $1777 per ounce.

 

Brent crude futures rose 18 cents, or 0.24%, to settle at $73.88 per barrel while WTI crude futures settled 14 cents, or 0.2%, higher at $70.87 a barrel.

 

In Europe, FTSE fell 0.7% while DAX and CAC gained 0.2% and 0.5% respectively.  U.K. Consumer Price Index rose by 5.1% y-o-y, up from 4.2% in October, the steepest incline for a decade and more than double the Bank of England’s target.

 

Earlier, data from China showed industrial output for November rose 3.8% year-on-year, more than the 3.5% increase in October, and better than the 3.6% expected. Retail sales in November rose 3.9% year-on-year, less than October’s 4.9% increase, and below the expectations of 4.6%.

 

AT HOME

 

Benchmark indices ended lower by six tenth of a percent each after a choppy session, extending the losing streak to fourth straight day. Sensex lost 329 points to settle at 57788 while Nifty finished at 17221, down 103 points. Nifty mid-cap and small-cap indices fell 0.6% and 0.4% respectively. Except 0.5% and 0.1% higher Auto and Capital Goods indices, all the BSE sectoral indices ended in red, with Realty and Teck indices leading the losses, down 1.8% and 1.1% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3407 cr, 416 cr and 1775 cr respectively. DIIs were net buyers to the tune of Rs 1553 cr.

 

Rupee depreciated 36 paise to end at 76.23/$.

 

OUTLOOK

 

Today morning, Nikkei is up more than a percent, Shanghai is flat while Hang Seng is down a percent. SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 17225, the low made Tuesday, was the immediate support, upon breach of which, 17050, where a trendline adjoining recent bottoms is placed, would be the next downside level to eye.

 

Nifty touched a low of 17192 before closing at 17221.

 

17050, around which a trendline adjoining recent bottoms is placed, continues to be next support to eye; 17430 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

36545, the low made Tuesday, is the immediate support for Banknifty, upon breach of which, 36200, around which a trendline adjoining recent bottoms is placed, would be the next support to eye; 37581, the top made Monday, is the immediate hurdle.

 

17225 IS THE IMMEDIATE SUPPORT; 17639 IMMEDIATE HURDLE

 

17225 IS THE IMMEDIATE SUPPORT; 17639 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.3%-1.1% as some large tech stocks moved lower and new inflation data continued to show a sharp rise in prices. Warning from World Health Organization that the omicron variant is spreading faster than any previous strain also weighed on the sentiment.

 

November’s producer price index showed a y-o-y increase of 9.6%, the fastest pace on record and above the 9.2% expectation. The index rose 0.8% month over month, above the 0.5% expected.

 

US 10-year treasury yield rose 3 bps to 1.45%. Dollar index rose 0.2% to 96.5520. Spot gold fell 0.9% to $1,771.66 per ounce.

 

Brent crude futures fell 69 cents, or 0.9%, to $73.70 while WTI crude futures settled down 56 cents, or 0.8%, at $70.73.

 

European markets fell 0.2%-1.1%.  U.K. employment data remained strong in November, with 257,000 staff added to payroll.

 

The Fed will conclude its two-day policy meeting today and is widely expected to announce an acceleration of the tapering of its bond-buying program.

 

AT HOME

 

Benchmark indices ended lower by nearly three tenth of a percent after a rangebound but choppy session, extending the losing streak to third straight day. Sensex settled at 58117, down 166 points while Nifty lost 43 points to finish at 17325. Nifty mid-cap index fell 0.2% while small-cap index inched up 0.2%. BSE Telecom and Auto indices tumbled 1.4% and 0.9% respectively, becoming top losers among the sectoral indices while Power and Utilities indices were the top gainers, up 1.4% and 1.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 763 cr, 1657 cr and 2182 cr respectively. DIIs were net buyers to the tune of Rs 425 cr.

 

Rupee depreciated 10 paise to end at 75.87/$.

 

India's WPI inflation for the month of November came in at 14.2% vs 12.5% in October.

 

OUTLOOK

 

Today morning, Asian markets are trading flat to marginally higher while SGX Nifty is suggesting around 20 points lower start for our market.

 

In yesterday's report we had said that If first hour low breaks, 17000, where a trendline adjoining recent bottoms is placed, would be the next support to eye. We had also said that 17639, the top made Monday, which, roughly coincided with 34-DMA, was the important immediate hurdle to eye.

 

Nifty, after touching a lowe of 17225, rebounded to end at 17325.

 

17225, the low made yesterday, is the immediate support, upon breach of which, 17050, where a trendline adjoining recent bottoms is placed, would be the next downside level to eye.

 

17639, the top made Monday, which, roughly coincided with 34-DMA, is the important immediate hurdle to eye.

 

36545, the low made yesterday, is the immediate support for Banknifty, upon breach of which, 36150, around which a trendline adjoining recent bottoms is placed, would be the next support to eye; 37581, the top made Monday, is the immediate hurdle.

 

RESISTED NEAR 34-DMA

 

RESISTED NEAR 34-DMA

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.9% each while Nasdaq tumbled 1.4% as Covid omicron fears hit sentiment.

 

UK Prime Minister Boris Johnson said on Sunday Britain faced an Omicron “tidal wave.” Yesterday he said at least one person has died in the UK due to the latest variant. China also reported its first omicron case. Also, the University of Oxford published results on showing two doses of the Oxford-AstraZeneca or Pfizer-BioNTech Covid-19 vaccines are substantially less effective at warding off omicron compared to previous variants of the coronavirus.

 

US 10-year treasury yield dipped 7 basis points to 1.419%. Dollar index rose 0.3% to 96.36. Spot gold inched up 0.2% to $1,786.19 per ounce.

 

Brent crude fell 76 cents, or 1%, to settle at $74.39 per barrel while WTI crude declined 38 cents, or 0.53%, to settle at $71.29 per barrel.

 

European markets fell upto 0.8%.

 

AT HOME

 

After rising nearly three fourth of a percent in the initial trade, Sensex and Nifty plunged to end lower by 0.8% and 0.9% respectively. Sensex settled at 58283, down 503 points while nifty lost 143 points to finish at 17368. Nifty mid-cap and small-cap indices fell 0.25% and 0.1% respectively. Except a flat Consumer Durables index, all the BSE sectoral indices ended in red, with Energy index leading the losses, down 1.8%, followed by 1.2% lower Realty and Oil & Gas indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2743 cr, 946 cr and 2163 cr respectively. DIIs were net buyers to the tune of Rs 1351 cr.

 

Rupee ended unchanged at 75.76/$.

 

India's November CPI inched up to 4.9% from 4.48% in October. Core inflation was unchanged at 6.1%.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are down nearly half a percent while Hang Seng is off nearly a percent. SGX Nifty is suggesting around 120 points lower start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 17675, continued to be next upside target and that immediate support on the hourly chart had moved up to 17325, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17639, reversed to end at 17368. The benchmark is set to open below 17300 today.

 

After this gap-down opening, the low made in first hour would be the immediate support to eye. If that breaks, 17000, where a trendline adjoining recent bottoms is placed, would be the next support to eye.

 

17639, the top made yesterday, which, roughly coincided with 34-DMA, is the important immediate hurdle to eye.

 

Below first hour low, next support for Banknifty will come around 36000; 37581, the top made yesterday, is the immediate hurdle.

 

17675 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 17325

 

17675 IS THE NEXT UPSIDE TARGET; TRAIL STOP-LOSS TO 17325

 

WORLD MARKETS

 

US indices gained 0.6%-1% on Friday with the S&P 500 closing at a record.

Consumer Price inflation soared 6.8% y-o-y in Novemebr to highest rate since 1982. Month-on-month increase stood at 0.8%. Core CPI, which excludes food and energy prices, rose 0.5% for the month and 4.9% from a year ago.

US 10-year treasury yield was little changed at 1.485%. Dollar index fell 0.2% to 96.05. Spot gold rose 0.1% to $1,776.23 per ounce.

 

European markets fell 0.1%-0.4%. The U.K. economy grew just 0.1% month-on-month in October, shy of expectations for a 0.4% expansion. British industrial output fell 0.6% month-on-month in October, again falling short of economist expectations for a 0.1% rise. Final German consumer price index inflation was confirmed at -0.2% month-on-month in November for a 5.2% annual incline.

 

For the week, Dow climbed 4%, snapping a 4-week losing streak while S&P 500 and Nasdaq Composite added 3.8% and 3.6% respectively. WTI as well as Brent surged more than 7%, their first weekly gain in seven. Gold fell 0.4% for its fourth weekly fall. Dollar index was little changed at 96.05.

 

AT HOME

 

After falling more than half a percent, benchmark indices recouped all the losses in late noon rebound to end little changed. Sensex settled at 58786, down 20 points while Nifty lost 5 points to finish at 17511. Nifty mid-cap and small-cap indices gained 0.8% each. BSE Realty index surged 2.9%, becoming top gainer among the sectoral indices, followed by 0.9% higher Oil & Gas index. Consumer Durables and Telecom indices were the top losers, down 0.3% and 0.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1092 cr, 1323 cr and 508 cr respectively. DIIs were net buyers to the tune of Rs 387 cr.

 

Rupee depreciated 24 paise to end at 75.76/$.

 

For the week, Sensex and Nifty gained 1.9% and 1.8% respectively, extending the winning streak to second consecutive week.

 

India's industrial production expanded at 3.2% in October, as against 3.3% in September.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 1%-1.6% and SGX Nifty is suggesting around 140 points higher start for our market.

 

In Friday's report we had said that 34-DMA, placed around 17690, continued to be next upside level to eye and had advised holding on to long positions with the stop-loss of 17260.

 

Nifty, after touching a low of 17405, rebounded to end at 17511 and is set to open above 17600 today.

 

34-DMA, placed around 17675, continues to be next upside target; Immediate support on the hourly chart has moved up to 17325, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 34-DMA, placed around 38200, is the next upside target/resistance to eye; 36800 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.