17200 BELOW 17280; 17900 IS IMMEDIATE HURDLE

 

17200 BELOW 17280; 17900 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow ended flat but S & P 500 and Nasdaq fell 0.3% and 1.3% respectively as bond yields jumped following renomination of Powell, driving expectations that the central bank may stay the course on tapering economic support.

 

US President Biden announced Powell as his pick for the central bank chief nomination in a closely-watched decision. He named Fed Governor Lael Brainard, seen as the main competition for the top job, as vice chair.

 

Existing Home sales improved month-over-month but were well below the level from the same month last year.

 

US 10-year treasury yield climbed by 9.3 basis points to 1.629%. Dollar index rose 0.27% to 96.29, the highest since July 2020. Spot gold slipped 2.1% to $1,805.30 per ounce, its lowest since Nov. 5.

 

Brent crude rose 83 cents, or 1%, to $79.70 a barrel while U.S. crude gained 80 cents, or 1%, to $76.73.

 

In Europe, FTSE gained 0.4% but DAX and CAC eased 0.3% and 0.1% respectively

 

AT HOME

 

Benchmark indices plunged 2% each, extending the losing streak to fourth consecutive session and closing at the lowest level in 2-months. Sensex settled at 58465, down 1170 points while Nifty lost 348 points to finish at 17416. Nifty mid-cap and small-cap indices nosedived 3% and 2.7% respectively. Except 2.9% and 0.1% higher Telecom and Metal indices respectively, all the BSE sectoral indices ended in red, with Realty and Energy indices leading the losses, down 4.4% and 4% respectively.

 

FIIs net sold stocks worth Rs 3439 cr but net bought index futures and stock futures worth Rs 134 cr and 1456 cr respectively. DIIs were net buyers to the tune of Rs 2051 cr.

 

Rupee depreciated 16 paise to end at 74.40/$.

 

OUTLOOK

 

Nikkei is shut today while Hang Send is down a percent but Shanghai is up 0.3%. SGX Nifty is suggesting around 60 points lower start for our market.

 

In yesterday's report we had said that below 17688, 17613 and 17452, the bottoms made on 29th October and 1st October respectively, would be the next downside levels to eye and had advised holding on to short positions with the stop-loss of 18000.

 

Nifty plunged all the way to 17280 before closing at 17416.

 

17280, the low made yesterday, also coincides with a trendline adjoining bottoms made in April and July and hence is the immediate support to eye. Below 17280, 20-week moving average, placed around 17200, would be the next important support to eye; 17900 is immediate hurdle.

 

For Banknifty, 36655, the low made yesterday, is the immediate support, below which, 35800, where 34-week moving average is placed, would be the next important level to eye; 38150 is immediate hurdle.