NIFTY EXTENDS CONSOLIDATION; 10638-10398 ARE THE IMMEDIATE LEVELS TO EYE

NIFTY EXTENDS CONSOLIDATION; 10638-10398 ARE THE IMMEDIATE LEVELS TO EYE

WORLD MARKETS

Dow and S & P 500 ended marginally in the green while Nasdaq lost 0.2% on Friday, off their highs after news broke that Robert Mueller indicted 13 Russian nationals for allegedly interfering with the 2016 U.S. presidential election.

In economic news, housing starts rose 9.7% in January, surpassing market expectations. Import prices gained 1%, while export prices advanced 0.8%. Consumer sentiment rose more than expected, according to a preliminary reading from the University of Michigan.

The dollar index slipped to 88.36 — its lowest level since late 2014 — before recovering to 88.89.

European markets gained 0.8%-1.3%.

For the week, US indices soared 4.2%-5.3% with the Nasdaq, Dow and S & P 500 posting their best weekly performances since 2011, 2016 and 2013, respectively. European markets gained 2.8%-4%. In Asia, while Hang Seng, Shanghai and Nikkei gained 5.4%, 2.2% and 1.6% respectively, India ended flat.

AT HOME

After gaining more than half a percent at the open, benchmark indices  nosedived nearly a percent and half from the top of the day to end with cuts of about eight tenth of a percent. Sensex lost 286 points to settle at 34010 while Nifty finished 93 points lower at 10452. BSE mid-cap and small-cap indices tumbled 1.2% each. Except 0.1% higher IT index, all the BSE sectoral indices ended in red with Auto and Metal indices leading the tally, down 1.6% each.

FIIs net sold stocks, index futures and stock futures worth Rs 1066 cr, 66 cr and 175 cr respectively. DIIs were net buyers to the tune of Rs 1128 cr.

Rupee depreciated 30 paise to end at 64.21/$.

For the week, Sensex and Nifty ended flat.

OUTLOOK

Today Shanghai and Hang Seng continue to be shut for Lunar New Year. Nikkei is up nearly a percent and SGX Nifty is suggesting about 10 points higher start for our market.

After touching a low of 10276 on 6th February, Nifty has been in a consolidation mode and has made top and bottom of 10638 and 10398 respectively in subsequent trading which are now the immediate resistance and support levels to eye. Above 10638, 10725, the 50% retracement level of the 11171-10276 fall, would be the next upside target to eye. Upon breach of 10398, 10276 would be the next crucial support.

The U.S. market will be closed today for Presidents Day.