16836 CONTINUES TO BE IMPORTANT SUPPORT; 17500 IMMEDIATE HURDLE

 

16836 CONTINUES TO BE IMPORTANT SUPPORT; 17500 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow ended little changed while S & P 500 and Nasdaq fell 0.5% and 1.4% respectively as robust economic data strengthened the case for an interest rate hike by the Federal Reserve in March.

 

U.S. GDP grew 6.9% in the fourth quarter of 2021 compared to the year before, beating 5.5% expectation. For 2021, US GDP grew 5.7%, posting its best performance in nearly four decades.

 

US 10-year treasury yield fell 6 bps to 1.803%. Dollar index surged 0.75% to 97.20, its highest level after July 2020. Gold plunged 1.2% to $1797 per ounce.

 

Shares of Apple popped nearly 5% in after-hours trading after the company reported its largest single quarter in terms of revenue ever.

 

Data from China showed industrial profits grew at their slowest pace in more than 18 months.

 

Brent crude fell 62 cents to settle at $89.34 a barrel, while U.S. crude closed 74 cents lower at $86.61 a barrel.

 

European markets gained 0.4%-1.1%. Germany’s GfK consumer sentiment index came in at -6.7 points heading into February from a revised -6.9 points a month ago, exceeding expectations for a drop to -7.8.

 

AT HOME

 

After falling more than 2%, benchmark indices recouped more than half of the losses in noon trade to end lower by a percent. Sensex settled at 57276, down 581 points while Nifty lost 167 points to finish at 17110. Nifty mid-cap and small-cap indices fell 1% and 0.7% respectively. BSE IT and Teck indices nosedived 3.1% and 2.8% respectively, becoming the top losers among the sectoral indices while Bankex and Auto indices were the top gainers, up 1% and 0.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 6267 cr, 3009 cr and 959 cr respectively. DIIs were net buyers to the tune of Rs 2881 cr.

 

Rupee depreciated 29 paise to end at 75.07/$.

 

OUTLOOK

 

Today morning, Nikkei is up nearly 2% but Hang Seng and Shanghai are down 0.6% and 0.2% respectively. SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 16836, the low made on Tuesday, was the important immediate support to eye.

 

Nifty, after touching a low of 16866, rebounded to end at 17110.

 

16836, the low made on Tuesday, continues to be important immediate support; 34-DMA, placed around 17500, is the immediate hurdle.

 

38850 is the next upside target for Banknifty; 37012, the low made yesterday, is the immediate support.

 

L & T, Dr Reddy, Kotak Mahindra Bank and Britannia will report their quarterly earnings today.