17500-17430 IS THE SUPPORT AREA; 17919 IS THE HURDLE

 

17500-17430 IS THE SUPPORT AREA; 17919 IS THE HURDLE

 

WORLD MARKETS

 

US indices fell 0.4%-1.4%, extending the losing streak to third consecutive day, over recession fears following the Fed’s latest 75-basis-point rate hike.

 

Weekly jobless claims rose to 213,000 versus expectations for 218,000.

 

US 10-year treasury yield surged 19 bps to 3.718%. Dollar index, after touching a high of 111.81, eased to end marginally lower at 111.27. Gold fell 0.1% to $1671 per ounce.

 

Brent as well as WTI crude rose 0.8% each to $90.58 and $83.69 per barrel.

 

European markets tumbled 1.1%-1.9%. The Swiss National Bank raised its benchmark interest rate to 0.5%. The Bank of England also hiked rates, its seventh consecutive increase with a 50 basis point rise.

 

AT HOME

 

After falling a percent in the first half, Sensex and Nifty recouped half of the losses in second half to end lower by 0.6% and 0.5% respectively, extending yesterday's dip. Sensex settled at 59119, down 337 points while Nifty lost 88 points to finish at 17629. Nifty mid-cap and small-cap indices however gained 0.3% and 0.6% respectively. BSE Bankex and Financial Services indices tumbled 1.4% and 1.2% respectively, becoming top losers among the sectoral indices while FMCG and Consumer Durables indices gained 1.3% and 1% respectively, becoming top gainers. 

 

FIIs net sold stocks and index futures worth Rs 2510 cr and 2438 cr respectively but net bought stock futures worth Rs 691 cr. DIIs were net buyers to the tune of Rs 263 cr.

 

Rupee nosedived 88 paise to end at 80.86/$.

 

OUTLOOK

 

Japan markets are closed today for a holiday. Hang Seng and Shanghai are trading with modest gains while SGX Nifty is suggesting around 75 points lower start for our market.

 

In yesterday's report we had said that 17430, the low made Monday, was the downside level to eye while 17919, the top made Tuesday, continued to be immediate hurdle, with the stop-loss of which, trading shorts could be held on to.

 

Nifty, after touching a low of 17532, rebounded to end at 17630 and is set to open near 17550 today.

 

17500-17430 is the support area to eye for Nifty; 17919, the top made Tuesday, continues to be immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

40288, the low made last week, is the next support for Banknifty; 41100-41300 is the immediate resistance zone above which, 41840, the top made last week, would be the next hurdle.