17000 IS THE NEXT SUPPORT; 17565 IMMEDIATE HURDLE

 

17000 IS THE NEXT SUPPORT; 17565 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow ended flat while S & P 500 and Nasdaq fell 0.4% and 0.6% respectively after a choppy session.

 

US 10-year treasury yield was little changed at 1.918%. Dollar index too was flattish at 95.41. Gold rose 0.7% to $1820 per ounce

 

Brent crude declined 58 cents, or 0.62%, to $92.69 per barrel while WTI crude fell 99 cents, or 1.1%, to settle at $91.32 per barrel.

 

European markets gained 0.7%-0.8%. German industrial production slipped by 0.3% in December, short of expectations for a 0.4% monthly rise.

 

AT HOME

 

Benchmark indices plunged 1.7% each, extending the losing streak to third straight day and suffering the biggest cut after 24th January. Sensex settled at 57621, down 1023 points while Nifty lost 302 points to finish at 17213. Nifty mid-cap and small-cap indices fell 1% and 1.3% respectively. BSE Finance and Capital Goods indices tumbled 2.3% and 2.1% respectively, becoming top losers among the sectoral indices while Utilities and Power indices were the top gainers, up 1% and 0.7% respectively.

 

FIIs net sold stocks and index futures worth Rs 1157 cr and 1067 cr respectively but net bought stock future worth Rs 165 cr. DIIs were net sellers to the tune of Rs 1376 cr.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent while Hang Seng and Shanghai are off 0.5% and 0.2% respectively. SGX Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 17400 continued to be immediate support on the hourly chart upon breach of which, 17244, the low made on the budget day, would be the next level to eye.

 

Nifty broke 17400 and plunged all the way to 17119 before closing at 17213.

 

17000 where a trendline adjoining recent bottoms is placed, is the next support, upon breach of which, 16836, the bottom made in January, would be the next downside level to eye.

 

Immediate hurdle on the hourly chart is placed around 17565, with the stop-loss of which, trading shorts can be held on to.

 

37690, the low made on the Budget day, is the next support for Banknifty below which 34-DMA, placed around 37300 would be the next downside level to eye; 38800 is the immediate hurdle.

 

Bharti Airtel will report its quarterly earnings today.