16824 IS THE NEXT SUPPORT; 17465 IMMEDIATE HURDLE

 

16824 IS THE NEXT SUPPORT; 17465 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices tumbled 2.6%-2.8%, with the Dow having its worst day since October 2020, as the latest raft of corporate earnings and the prospect of rising rates spurred a wave of selling.

 

US 10-year treasury yield eased 1 bps to 2.903%. Dollar index rose half a percent to 101.12. Gold slipped 1.1%.

 

Brent crude settled down $1.68, or 1.6%, at $106.65 a barrel while WTI crude declined $1.72, or 1.7%, to $102.07 per barrel.

 

European markets fell 1.4%-2.5%. Data out in the UK showed retail sales volumes dropping more than expected in the month of March.

 

For the week, Dow fell 1.9% for its fourth straight weekly decline while S & P 500 and Nasdaq tumbled 2.8% and 3.8% respectively, extending the losing streak to third straight week. WTI and Brent crude fell 2% and 4.5% respectively. Gold fell 2.3%.

 

AT HOME

 

Benchmark indices slipped a percent and quarter, snapping a 2-day winning streak. Sensex settled at 57197, down 714 points while Nifty lost 220 points to finish at 17172. Nifty mid-cap and small-cap indices fell 1% and 0.9% respectively. All the BSE sectoral indices ended in red, with Bankex and Metal indices leading the losses, down 2.2% each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2462 cr, 941 cr and 1186 cr respectively. DIIs were net buyers to the tune of Rs 1602 cr.

 

Rupee depreciated 34 paise to end at 76.48/$.

 

For the week, Sensex and Nifty fell 1.7% and 2% respectively, extending the losing streak to second straight week.

ICICI Bank had strong quarter with superior performance across many parameters. Net Interest Margin hit all time high, Return on Assets crossed 2% marks after 7-8 years, Groos and Net NPAs ratios were best in 29 quarters and CASA was ratio was best in 12 quarters.

 

OUTLOOK

 

Today morning, Nikkei, Hang Seng and Shanghai, all are trading with cuts in excess of 2% and SGX Nifty is suggesting nearly 200 points lower start for our market.

 

In Friday's report we had said that Nifty was yet to confirm a "Buy" on the hourly chart and a decisive and sustained crossover of 17400-17450 resistance zone was required for that; We had also said that 17060 was the immediate support, below which, 16824, the low made Tuesday, would be the next downside level to eye.

 

Nifty touched a low of 17149 before closing at 17171 and is set to open below 17000 today.

 

16824, the low made last week, is the next downside level to eye; 20-DMA, placed around 17465 is the immediate hurdle.

 

35016, the bottom made on 28th March, is the next downside level to eye for Banknifty; 37123, the top made last week, is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.