17430 IS THE NEXT SUPPORT; 17919 CONTINUES TO BE HURDLE

 

17430 IS THE NEXT SUPPORT; 17919 CONTINUES TO BE HURDLE

 

WORLD MARKETS

 

US indices ended with cuts of 1.7%-1.8% after the Federal Reserve raised rates by 75 basis points and signaled more large increases at its upcoming meetings.

 

The Fed’s new projections showed its policy rate rising to 4.4% by the end of the year, before peaking at 4.6% in 2023 to curb uncomfortably high inflation.

 

US 2-year Treasury yield surged 15 bps to 4.113% and hit highest level since October 2007. 10-year Treasury yield rose to a high of 3.64%, its highest since February 2011. The dollar index hit a fresh 20-year high of 111.63 and was last up 1%% at 111.35. Gold ended half a percent higher at $1673 after a choppy session.

 

Brent crude futures settled 79 cents, or 0.9%, lower at $89.83 a barrel while WTI crude fell $1.00, or 1.2%, to $82.94.

 

European markets gained 0.6%-1.2%.

 

AT HOME

 

Sensex and Nifty slipped 0.4% and 0.6% respectively, snapping a 2-day winning streak. Sensex settled at 59456, down 262 points while Nifty lost 98 points to finish at 17718. Nifty mid-cap and small-cap indices fell 0.7% and 1% respectively. Except 1.1% higher FMCG index, all the BSE sectoral indices ended lower, with Utilities and Power indices being the top losers, down 2.3% and 2.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 461 cr, 1092 cr and 1453 cr respectively. DIIs were net buyers to the tune of Rs 539 cr.

 

Rupee depreciated 23 paise to end at 79.98/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-2% and SGX Nifty is suggesting around 125 points lower start for our market.

 

In yesterday's report we had said that 17920, the top made Tuesday, was the immediate hurdle, while 17667, the lower end of the gap created by Tuesday's gap-up opening, was the immediate support.

 

Nifty, after touching a low of 17663, rebounded to end at 17718. The benchmark is set to open near 17600 today.

 

17430, the low made Monday, would be the downside level to eye after today's gap-down opening; 17919, the top made Tuesday, continues to be immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 41840, the top made last week, continues to be immediate hurdle and 40500-40300 is the support area.