18201 IS IMMEDIATE HURDLE; 18016 IMMEDIATE SUPPORT

 

18201 IS IMMEDIATE HURDLE; 18016 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow rose 0.3% for its third consecutive up day while S & P 500 and Nasdaq fell 0.1% and 0.3% respectively

 

S&P Global's flash U.S. Composite Output Index rose to 46.6 in January from 45 in December. Though U.S. business activity contracted in January for the seventh straight month, the downturn moderated across both the manufacturing and services sectors for the first time since September and business confidence strengthened.

 

3M plunged 6.2% on disappointing guidance, while Union Pacific dipped 3.3% after the railroad company’s results fell short of analysts’ estimates.

 

US 10-year treasury yield fell 6 bps to 3.455%. Dollar index fell 0.1% to 101.92. Gold rose a third of a percent to $1937 per ounce.

 

Brent futures for March delivery fell $1.15 to $87.04 a barrel, a 1.3% loss. WTI crude fell 96 cents, or 1.2%, to $80.66 per barrel.

 

In Europe, FTSE and DAX fell 0.4% and 0.1% respectively but CAC gained 0.3%. S&P Global’s flash Composite PMI for Euro zone came in at 50.2 in January, up from 49.3 in December and making a surprise return to modest growth.  Yet British private sector economic activity fell at its fastest rate in two years.

 

AT HOME

 

After rising nearly half a percent in the initial trade, benchmark indices gave away all the gains through the session to end little changed. Sensex settled at 60978, up 37 points while Nifty was absolutely flat at 18118. Nifty mid-cap and small-cap indices fell 0.4% each. BSE Metal index slipped 1.2%, becoming top loser among the sectoral indices, followed by 1% lower Healthcare and Realty indices. Auto index was the top gainer, up 1.2%, followed by 0.7% higher Consumer Discretionary and IT indices.

 

FIIs net sold stocks worth Rs 761 cr but net bought index futures and stock futures worth Rs 475 cr and 1277 cr respectively. DIIs were net buyers to the tune of Rs 1145 cr.

 

Rupee depreciated 33 paise to end at 81.72/$.

 

OUTLOOK

 

Markets in China and Hong Kong are closed for a holiday. Nikkei is marginally in the green but SGX Nifty is suggesting around 40 points lower start for our market.

 

In yesterday's report we had said that 18184, the top made last week, continued to be immediate hurdle, upon sustained trading above which, 18325 and 18457, the 50% and 61.8% retracement levels of the 18887-17761 fall, would be next upside levels to eye; We had also said that 17950 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a high of 18201 in the initial trade, slipped to end at 18118.

 

18201, the top made yesterday, is the immediate hurdle, upon crossover of which, 18325 and 18457, the 50% and 61.8% retracement levels of the 18887-17761 fall, would be next upside levels to eye; 18016, the bottom made Friday, is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43079, the top made yesterday, is the immediate hurdle, above whcih, 43578, the top made on 4th January, would be next upside target to eye; 42500-42400 is the support area.

 

Tata Motors and Dr Reddy's will report their quarterly earnings today.