16843 IS THE IMMEDIATE SUPPORT; 17300 IMMEDIATE HURDLE

 

16843 IS THE IMMEDIATE SUPPORT; 17300 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 1%-1.4% amid escalating tensions between Russia and Ukraine.

 

US President Biden announced a first tranche of sanctions against Russia targeting Russian banks, the country’s sovereign debt and three individuals. The U.K. slapped targeted sanctions on five Russian banks and three wealthy individuals, while Germany halted the certification of the Nord Stream 2 gas pipeline, designed to transport natural gas from Russia directly to Europe.

 

On the data , US IHS Markit manufacturing PMI rose to 52.5 in February from 50.5 and services PMI jumped to 56 in February from 51.1 the month prior. On the flip side, U.S. consumer confidence fell for a second straight month in February.

 

US 10-year treasury yield rose 4 bps to 1.941%. Dollar index was flat at 96.07. Spot gold eased 0.2% to $1,902.71 per ounce.

 

US crude rose 1.4% to $92.35 per barrel and Brent gained 1.5% to settle at $96.84.

 

In Europe, FTSE inched up 0.1%, CAC was flat while DAX fell 0.3%.  Germany’s Ifo business climate index rose to 98.9 in February from 96.0 in January.

 

AT HOME

 

After opening with deep cut of 2%, benchmark indices recouped two-third of the losses to end lower by two-third of a percent, extending the losing streak to fifth straight day. Sensex settled at 57300, down 382 points while Nifty lost 114 points to finish at  17092. Nifty mid-cap and small-cap indices fell 1% and 2% respectively to close at the lowest level after 30th August and 23rd August respectively. Except 0.1% higher Utilities index, all the BSE sectoral indices ended lower, with Realty index being the top loser, down 3%, followed by 1.5% lower Telecom index.

 

FIIs net sold stocks and index futures worth Rs 3245 cr and 1367 cr respectively but net bought stock futures worth Rs 1997 cr. DIIs were net buyers to the tune of Rs 4108 cr.

 

Rupee depreciated 37 paise to end at 74.8750/$.

 

OUTLOOK

 

Nikkei is shut today while Hang Seng is flat and Shanghai is up 0.2%. SGX Nifty is suggesting around 100 points higher start for our market.

 

In yesterday's report we had said that 16955, the 78.6% retracement level of the recent 16809-17490 upmove, was the next support, upon breach of which, 16809, the bottom made on 14th February, would be the next downside level to eye.

 

Nifty plunged all the way to 16843 and rebounded from there to end at 17092. The benchmark is set to open above 17150 today.

 

17300 is the immediate hurdle on the hourly chart, upon crossover of which, 17490, the top made last week, would be the next upside level to eye; 16843, the bottom made yesterday, is the immediate support.

 

36651, the low made last week, continues to be important immediate support for Banknifty; 38054, the top made Monday, is the immediate hurdle.