NIFTY HOLDS TRENDLINE SUPPORT; 17515 IS THE IMMEDIATE HURDLE

 

NIFTY HOLDS TRENDLINE SUPPORT; 17515 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices gained 0.8%-1.3% as a handful of strong corporate earnings boosted sentiment.

 

US 10-year treasury yield rose 4 bps to 1.96%. Dollar index inched up 0.2% to 95.62. Spot gold rose 0.4% to $1,827.86 per ounce.

 

US December trade deficit came in at $80.7 billion as against the expected $82.8 billion shortfall.

 

Brent as well as WTI crude fell 1.9% each to to $90.91 and $89.60 per barrel respectively.

 

In Europe, except 0.1% lower FTSE, other markets gained 0.2%-0.3%.

 

AT HOME

 

After falling a percent, benchmark indices surged to end higher by three tenth of a percent, snapping 3-day losing streak. Sensex settled at 57808, up 187 points while Nifty added 53 points to finish at 17266. Nifty mid-cap and small-cap indices however ended with cuts of 0.7% and 1.7% respectively, extending the losing streak to fourth consecutive day. BSE Utilities and Power indices tumbled 2.8% each, becoming top losers among the sectoral indices while Metal and Energy indices were the top gainers, up 1.1% and 0.9% respectively.

 

FIIs net sold stocks worth Rs 1968 cr but net bought index futures and stock futures worth Rs 427 cr and 967 cr respectively. DIIs were net buyers to the tune of Rs 1115 cr.

 

Rupee depreciated 5 paise to end at 74.75/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 1.8% and 0.8% respectively while Shanghai is marginally in the red. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 17000, where a trendline adjoining recent bottoms is placed, is the next support and had advised holding on to short positions with the stop-loss of 17565.

 

Nifty, after touching a low of 17043, rebounded to end at 17266.

 

17043, the low made yesterday, which roughly coincides with the trendline adjoining recent bottoms on the daily chart, is the immediate support to eye. If this level breaks, 16836, the bottom made in January, would be the next downside level to eye.

 

Immediate resistance on the hourly chart has moved lower to 17515, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 37319, the low made yesterday, coincided with the 34-DMA and hence is the important immediate support; 38700 is the immediate hurdle.