17150, 17043 ARE THE SUPPORTS; 17639 IS THE HURDLE

 

17150, 17043 ARE THE SUPPORTS; 17639 IS THE HURDLE

 

WORLD MARKETS

 

US indices plunged 1.4%-2.8% on Friday as the White House warned that a war in Ukraine could begin “any day now” and urged Americans there to leave “immediately.”

 

Government Bonds and Gold prices rose as investors flocked to safe-haven assets. US 10-year treasury yield dropped 10 bps to 1.92%. Dollar index rose 0.25% 96.03. Spot gold rose 1.6% to $1,855.17 per ounce.

 

WTI crude surged 3.6% to $93.10 per barrel and Brent crude advanced 3.3% to settle at $94.44 per barrel.

 

European markets fell 0.2%-1.3%.

 

AT HOME

 

Bears were back after three-day retreat as benchmark indices nosedived 1.3% each, snapping 3-day winning streak. Sensex settled at 58152, down 773 points while Nifty lost 231 points to finish at 17374. Nifty mid-cap and small-cap indices tumbled 2% and 2.4% respectively, suffering the worst fall after 24th January. All the BSE sectoral indices ended in red, with IT and Teck indices leading the losses, down 2.6% and 2.4% respectively.

 

FIIs net bought stocks worth Rs 109 cr but net sold index futures and stock futures worth Rs 1053 cr and 1014 cr respectively. DIIs were net sellers to the tune of Rs 697 cr.

 

Rupee depreciated 44 paise to end at 75.38/$.

 

For the week, Sensex and Nifty fell 0.8% each.

 

India's industrial growth, represented by IIP, fell to 10-month low at 0.4% in December.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-2.5% and SGX Nifty is suggesting around 230 points lower start for our market.

 

In yesterday’s report we had said that 17639, the top made Thursday, which roughly coincided with 20-DMA, is the immediate hurdle to eye while 17390 was the immediate support.

 

Nifty plunged to touch a low of 17303 before closing at 17374 and is set to open below 17200 today.

 

17150, around which a trendline adjoining bottoms made on 25th January and 8th February is placed, is the immediate support to eye, upon breach of which, 17043, the low made last week, would be the next support.

 

17639, the top made last week, which roughly coincided with the 20-DMA, is the immediate hurdle to eye.

 

For Banknifty, 20-DMA, placed around 38200, is the immediate support, upon breach of which, 34-DMA, placed around 37700, would be the next important support to eye; 39424, the top made on 3rd February, is the upside level to eye.