16600 BELOW 16824; TRAIL STOP-LOSS TO 17400

 

16600 BELOW 16824; TRAIL STOP-LOSS TO 17400

 

WORLD MARKETS

 

US indices, after a fattish start, saw a sustained upward movement through the session to end higher by 1.4%-2.2%, posting their best day since March 16.

 

US housing starts and building permits in March came in above expectations.

 

US 10-year Treasury yield rose 8 bps to 2.942%, its highest level since December 2018. Dollar index inched up 0.2% to 101. Spot gold fell 1.5% to $1,948 per ounce.

 

Brent as well as WTI crude declined 5.2% each to $107.25 and $102.6 per barrel respectively after the International Monetary Fund (IMF) reduced its global growth forecast for 2022 from 4.1% to 3.2%.

 

European markets fell 0.1%-1%.

 

AT HOME

 

After trading in a narrow range for better part of the day, benchmark indices nosedived in last half an hour to end lower by 1.25% each, extending the losing streak to fifth consecutive day and closing at the lowest level since 15th March. Sensex lost 703 points to settle at 56463 while Nifty finished at 16958, down 215 points. Nifty mid-cap and small-cap indices slipped 1.4% and 1.7% respectively. Except 1.2% higher Energy index, all the BSE sectoral indices ended in red with IT and FMCG indices leading the losses, down 2.6% each.

 

FIIs net sold stocks worth Rs 5872 cr but net bought index futures and stock futures worth Rs 1387 cr and 122 cr respectively. DIIs were net buyers to the tune of Rs 3981 cr.

 

Rupee depreciated 25 paise to end at 76.51/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.6% and 0.2% respectively while Shanghai is down half a percent. SGX Nifty is suggesting a modestly higher start for our market.

 

In yesterday's report we had said that 17068, the low made Monday, was the immediate support to eye and had advised holding on to short positions with the stop-loss of 17565.

 

Nifty broke 17068 and plunged all the way to 16825 before closing at 16958.

 

16824, the low made yesterday, is the immediate support, upon breach of which, 16600, the 61.8% retracement level of the entire 15671-18115 upmove, would be the next downside level to eye; immediate hurdle on the hourly chart has moved lower to 17400, with the stop-loss of which, trading shorts can be held on to.

 

35926, the low made yesterday, which roughly coincided with 34-DMA, is the immediate support for Banknifty, upon breach of which, 35016, the low made on 28th March, would be the next downside level to eye; 37260 is the immediate hurdle.