16824 CONTINUES TO BE IMMEDIATE SUPPORT; 17450 IMMEDIATE HURDLE

 

16824 CONTINUES TO BE IMMEDIATE SUPPORT; 17450 IMMEDIATE HURDLE

 

WORLD MARKETS

 

After plunging nearly a percent and half in the initial trade on worries over Covid spread in China, US indices reversed to end rose 0.6%-1.3% as tech shares rallied in the afternoon tracking fall in treasury yield.

 

Mainland and Hong Kong stocks plunged on reports that COVID is spreading more rapidly in China, prompting fears of additional lockdowns and reduced output.

 

US 10-year treasury yield fell 8 bps to 2.82%. Dollar index jumped 0.6% to 101.74Spot gold fell 1.66% to 1,898 per ounce.

 

Brent futures fell $4.33, or 4.1%, to settle at $102.32 a barrel, while WTI crude fell $3.53, or 3.5%, to settle at $98.54.

 

European markets fell 1.5%-2%

 

AT HOME

 

Sensex and Nifty tumbled 1.1% and 1.3% respectively, extending the losing streak to second straight day and Nifty closing at the lowest level after 15th March, 2022. Sensex settled at 56579, down 617 points while Nifty lost 218 points to finish at 16953. Nifty mid-cap and small-cap indices nosedived 1.9% and 2.4% respectively.   All the BSE sectoral indices ended in red, with Realty and Metal indices leading the losses, down 3.7% each.

 

FIIs net sold stocks and index futures worth Rs 3303 cr and 1258 cr respectively but net bought stock futures worth Rs 681 cr. DIIs were net buyers to the tune of Rs 1870 cr.

 

Rupee depreciated 21 paise to end at 76.69/$.

 

OUTLOOK

 

Today morning Nikkei and Hang Seng are up a third of a percent each while Shanghai is down 1%. SGX Nifty is suggesting around 120 points higher start for our market.

 

In yesterday's report we had said that 16824, the low made last week, was the next downside level to eye while 20-DMA, placed around 17465 was the immediate hurdle.

 

Nifty plunged to 16888 before closing at 16953. The benchmark is set to open near 17050 today.

 

16824, the low made last week, continues to be immediate support to eye; 20-DMA, placed around 17450 continues to be immediate hurdle.

 

35511, the low made yesterday, which roughly coincided with the 50% retracement level of the 32155-38765 upmove, is the immediate support to eye; 36900-37000 is the resistance zone.