14469-14336 IS THE SUPPORT ZONE; 14919 IS THE IMMEDIATE HURDLE

 

14469-14336 IS THE SUPPORT ZONE; 14919 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 1.5% and 0.5% respectively while Nasdaq gained 0.6% as energy and financial stocks pulled back while big tech names rebounded after a large sell-off in the previous session amid surging bond yields.

 

The 10-year Treasury yield fell 10 basis points to around 1.42% on Friday, after surging above 1.6% at one point on Thursday

 

The personal consumption expenditures price index for January rose 0.3%, slightly ahead of the 0.2% expectation but was up just 1.5% y-o-y, matching estimates. U.S. consumer spending increased by the most in seven months in January. Personal income jumped 10% for its biggest monthly increase since April 2020 and after 0.6% increase in December.

 

WTI crude dipped 3.2% to settle at $61.50 per barrel.  Brent crude futures for April delivery slid 1.12% to $66.13 per barrel.

 

Spot gold tumbled 2.5% to $1,726.31 per ounce, an eight-month low.

 

European markets fell 0.7%-2.5%. U.K. bond yields rose after Bank of England Chief Economist Andy Haldane warned that inflation may become difficult to tame, prompting more assertive policy action.

 

For the week, US indices nosedived 1.8%-4.9% with Nasdaq losing the most. For the month of February however, indices gained 0.9%-3.2%. WTI crude gained 3.81% for the week and surged 17.82% for February.

 

AT HOME

 

Benchmark indices nosedived 3.8% each, suffering the worst fall since 4th May 2020 and closing at the lowest level since the Budget day. Sensex settled at 49100, down 1939 points while Nifty lost 568 points to finish at 14529. Nifty mid-cap and small-cap indices fell 1.6% and 1.2% respectively. All the BSE sectoral indices ended in red, with Bankex and Finance indices leading the losses, down 4.9% and 4.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 8295 cr, 3806 cr and 700 cr respectively. DIIs were net buyers to the tune of Rs 1500 cr.

 

Rupee plunged 67 paise to $73.10.

 

For the week, Sensex and Nifty fell 3.5% and 3% respectively, extending the losing streak to second straight week. For the month, Sensex and Nifty gained 6.1% and 6.6% respectively.

 

After two consecutive quarters of contraction (-24.4% and -7.3%), India's GDP rose 0.4% in the October-December quarter.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-2% and SGX Nifty is suggesting around 170 points higher start for our market.

 

In Friday's report we had said that 14800-14750 was the support zone to eye on the hourly chart and if 14750 gives way, 14635, the bottom made on Monday, would be the crucial support to eye.

 

Nifty broke 14750 and plunged all the way to 14467 before closing at 14529. The benchmark is set to open near 14700 today.

 

By touching a low of 14467 on Friday, Nifty has tested the 14469-14336 gap created by gap-up opening on 2nd February, the day after the Union Budget day. This makes 14467 an immediate support, upon breach of which, 14336 would be the next level to eye.

 

On the way up, 14919, the lower end of the gap created by Friday's gap-down opening would be the immediate hurdle, above which, 15065, the upper end of this gap, would be the next resistance.

 

Auto companies will report February sales figure today.