14800-14750 IS THE SUPPORT ZONE

14800-14750 IS THE SUPPORT ZONE

 

WORLD MARKETS

 

US indices nosedived 1.8%-3.5%, with the Nasdaq suffering its worst fall since October, on concerns that a rapid rise in bond yield could be driven by inflation rather than economic recovery.

 

U.S. 10-year Treasury yield briefly soared as high as 1.6% before easing to around 1.52%, its highest level since February 2020. The 10-year yield is up more than 50 basis points since the year began.

 

Initial jobless claims fell sharply to 730,000 for the week ended Feb. 20, well below the estimate of 845,000. Data for durable goods also came in better than expected. An update to the fourth-quarter GDP growth estimate came in at 4.1%, slightly above the advance reading released by the Commerce Department last month. Pending home sales data for January showed a 2.8% decline compared with the previous month, missing estimates.

 

Brent crude for April eased 0.24% to $66.88 per barrel while WTI gained 0.5% to settle at $63.53 per barrel.

 

Spot gold slipped 1.8% to $1,772.86 per ounce.

 

European markets fell 0.1%-0.7%.

 

AT HOME

 

Sensex and Nifty gained 0.5% and 0.8% respectively on the expiry day of the February derivative series, extending the winning streak to third straight day. Sensex settled at 51039, up 257 points while Nifty added 115 points to finish at 15097. Nifty mid-cap and small-cap indices climbed 1.5% and 1.4% respectively. Except 0.2% and 0.01% lower FMCG and Capital Goods indices respectively, all the BSE sectoral indices ended in green, with Energy and Oil & Gas indices leading the tally, up 3.9% and 3.5% respectively.

 

FIIs net bought stocks and stock futures worth Rs 188 cr and 382 cr respectively but net sold stock futures worth Rs 1655 cr. DIIs were net sellers to the tune of Rs 747 cr.

 

Rupee depreciated 9 paise to end at 72.41/$.

 

For the February derivative series, Nifty gained 9.3%.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 1.3%-3% and SGX Nifty is suggesting around 250 points lower start for our market.

 

In yesterday's report we had said that 15100 continued to be immediate hurdle, upon crossover of which, 15250 and 15431 would be next upside targets.

 

Nifty crossed 15100 level and surged all the way to 15176 before closing at 15097. However, the benchmark is set to open near 14850 today.

 

14800-14750 is the support zone to eye on the hourly chart. If 14750 gives way, 14635, the bottom made on Monday, would be the crucial support to eye.

 

15176, the top made yesterday, would now act as immediate hurdle, upon crossover of which, 15260 and 15431 would be the next levels to eye.

 

India's Q3 FY21 GDP data will be released today and is expected to show a growth of 0.6%.