17610 ABOVE 17490; 17257 IS IMMEDIATE SUPPORT

 

17610 ABOVE 17490; 17257 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

After a volatile session, Dow and Nasdaq ended 0.1% lower while S & P 500 inched up 0.1%, digesting Fed meeting minutes and watching developments over Russia-Ukraine tension.

 

The minutes from the Fed’s January meeting showed the Fed is prepared to hike interest rates and reduce its balance sheet soon. Meanwhile, retail sales jumped at higher-than-expected 3.8% in January.

 

NATO officials accused Russia of increasing troop numbers at the Ukrainian border, a day after Moscow claimed it had begun withdrawing some of its military units.

 

US 10-year treasury yield was little changed at 2.042%. Dollar index fell 0.2% to 95.78. Gold rose 0.8% to $ 1869 per ounce.

 

Brent crude climbed 1.6% to $94.81 per barrel and WTI crude settled 1.7% higher at $93.66 per barrel.

 

Main European markets fell 0.1%-0.3%.  U.K. inflation came in at 5.5% in January, slightly ahead of forecasts and remaining at a 30-year high.

 

AT HOME

 

After rising eight tenth of a percent, benchmark indices plunged a percent from the top of the day in late noon trade to end lower by nearly a fifth of a percent. Sensex settled at 57996, down 145 points while Nifty lost 30 points to finish at 17322. Nifty mid-cap index fell 0.3% but the small-cap index gained 0.7%. BSE Telecom and Realty indices gained 1.2% and 1% respectively, becoming top gainers among the sectoral indices while Metal index was the top loser, down 0.7%, followed by half a percent lower Bankex and Capital Goods indices.

 

FIIs net sold stocks worth Rs 1891 cr but net bought index futures and stock futures worth Rs 555 cr and 493 cr respectively. DIIs were net buyers to the tune of Rs 1180 cr.

 

Rupee appreciated 26 paise to end at 75.07/$.

 

OUTLOOK

 

Today morning, Hang Seng is up half a percent, Shanghai is flat while Nikkei is down 0.4%. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 20-DMA, placed around 17440, was the next upside level to eye, upon crossover of which, 17610, where 34-DMA was placed, would be the next target.

 

Nifty, after touching a high of 17490, slipped to end at 17322.

 

17490, the top made yesterday, which roughly coincides with a downward sloping trendline adjoining recent tops, is the immediate hurdle to eye, upon crossover of which, 34-DMA, placed around 17610, would be the next target; 17257, the low made yesterday, is the immediate support, upon breach of which, 16809, the low made Monday, would be the crucial support.

 

38461, the top made yesterday, is the immediate hurdle for Banknifty, above which, 39000-39200 would be the next target zone; 36651, the bottom made Tuesday, is the important support.