13700-13800 IS THE NEXT SUPPORT ZONE; 14450 IMMEDIATE HURDLE

 

13700-13800 IS THE NEXT SUPPORT ZONE; 14450 IMMEDIATE HURDLE

 

WORLD MARKETS

 

S & P 500 and Nasdaq plunged 2.6% each while Dow fell 2% amid caution about the eventual size of and delays to President Joe Biden’s $1.9 trillion fiscal stimulus plan. The speculative buying frenzy in heavily shorted stocks also kept markets on edge. S&P 500 and the Dow posted their worst day since October and S&P 500 wiped out its 2021 gains.

 

The U.S. Federal Reserve left its benchmark interest rate anchored near zero and said it will keep buying at least $120 billion of bonds a month. In his post-meeting news conference, Fed Chair Powell said: “The economy is a long way from our monetary policy and inflation goals, and it’s likely to take some time for substantial further progress to be achieved.”

 

Apple fell 3% despite reporting its largest quarter by revenue of all time at $111.4 billion. Tesla dropped more than 3% in extended trading after posting worse-than-expected earnings.

 

Brent crude gained 34 cents to $56.25 a barrel while WTI crude settled 24 cents, or 0.5%, higher at $52.85 per barrel.

 

Dollar index rose 0.5% to 90.61. Spot gold fell 0.4% to $1,844.61 per ounce.

 

European markets fell 1.2%-1.8%

 

AT HOME

 

Benchmark indices nosedived 1.9% each, suffering biggest cut after 21st December 2020 and extending the losing streak to fourth straight day. Sensex settled at 47410, down 937 points while Nifty lost 271 points to finish at 13967. Nifty mid-cap index fell 1.6%. However, small-cap index managed to gain 0.2%. Except 0.3% higher FMCG index, all the BSE sectoral indices ended in red, with Bankex and Finance indices leading the losses, down 2.9% and 2.7% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1688 cr, 1328 cr and 183 cr respectively. DIIs were net sellers to the tune of Rs 3 cr.

 

Rupee appreciated 1 paise to end at 72.92/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-1.1% and SGX Nifty is suggesting around 80 points lower start for our market.

 

Readers would recall that we had turned our view on Nifty negative after 14490 support was breached and have been advising holding on to short positions with a trailing stop-loss.

 

After the benchmark achieved 14222 target on Monday, in yesterday's report we had said that 34-DMA, placed around 14050, was the next important support to eye.

 

Nifty plunged all the way to 13929 before closing at 13967 and is set to open near 13900 today.

 

13700-13800 is the next support zone to eye.

 

Immediate hurdle on the hourly chart has moved lower to 14450, with the stop-loss of which, trading shorts can be held on to.