15900 BELOW 16203; 16900 CONTINUES TO BE IMMEDIATE HURDLE

 

15900 BELOW 16203; 16900 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.3% and 0.5% respectively while Nasdaq tumbled 1.6% after a choppy session, as tensions remained high over the Russia-Ukraine crisis.

 

Ukraine’s second biggest city, Kharkiv, suffered heavy bombardment, while Kherson, a key port city in southern Ukraine, came under control of Russian forces.

 

On the data front, US jobless claims for last week came in lower than expected. However, the ISM services PMI showed a slower-than-expected expansion in February.

 

US 10-year treasury yield dipped nearly 3 bps to 1.844%. Dollar index rose 0.4% to 97.73. Spot gold rose 0.4% to $1,933.31 per ounce.

 

WTI and Brent oil prices reversed to end lower after hitting their highest levels since September 2008 and May 2012 respectively. Brent, after touching $119.84, ended 2.2% lower at $110.46 per barrel while WTI crude hit a high of $116.57 before retreating to end 2.6% lower at $107.67 per barrel.

 

European markets plunged 1.8%-3.7%.

 

AT HOME

 

After opening a percent higher, benchmark indices saw a sustained downward move through the session to end lower by two-third of a percent, extending the losing streak to second straight day. Sensex settled at 55102, down 366 points while Nifty lost 108 points to finish at 16498. Nifty mid-cap index fell 0.4% but small-cap index rose 0.4%. BSE Auto and Consumer Discretionary Goods & Services indices were the top losers among the sectoral indices, down 2.2% and 1.4% respectively whereas Utilities and Power indices were the top gainers, up 2.4% and 2.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 6645 cr, 712 cr and 410 cr respectively. DIIs were net buyers to the tune of Rs 4799 cr.

 

Rupee depreciated 21 paise to end at 75.91/$.

 

OUTLOOK

 

Today morning, Asian markets are down 0.5%-2.5% and US futures on weak US handover and reports that smoke was visible from a nuclear power plant in Ukraine — the largest in Europe — after Russian troops attacked. SGX Nifty is suggesting more than 200 points lower start for our market.

 

In yesterday’s report we had said that 16900 continued to be immediate hurdle while 16356 followed by 16203, the bottoms made on Monday and last week respectively, continued to be the downside levels to eye.

 

Nifty, after touching a high of 16768, plunged to 16442 before closing at 16498. The benchmark is set to open below 16300 today.

 

16203, the bottom made last week respectively, is the downside level to eye, upon breach of which 15900 and 15600 would be next supports ; 16900 continues to be immediate hurdle.

 

34018, the low made in December, is the downside level to eye for Banknifty, below which 20-month moving average, placed around 33000, would be the next support; 35800 is immediate hurdle.