17650-17600 CONTINUES TO BE SUPPORT AREA; 17870-17970 IS THE RESISTANCE ZONE

 

17650-17600 CONTINUES TO BE SUPPORT AREA; 17870-17970 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

US indices climbed 0.8%-1.9% as Fed Chair Powell acknowledged that inflation is declining, raised hopes that the central bank may soon pause its rate hikes.

 

US 10-year treasury yield rose 3 bps to 3.677%. Gold inched up 0.3% to $1872 per ounce. Dollar index eased 0.3% to 103.34.

 

Brent crude futures rose 3.8% to $84.09 a barrel, while WTI futures rose 0.4% to $77.47 per barrel.

 

In Europe, FTSE rose 0.4% but DAX and CAC fell 0.2% and 0.1% respectively.

 

AT HOME

 

Sensex and Nifty fell 0.4% and 0.2% respectively, extending yesterday's half a percent cut. Sensex settled at 60286, down 220 points while Nifty lost 43 points to finish at 17721. Nifty mid-cap index was little changed while small-cap index slipped 0.7%. Nifty FMCG and Auto indices dipped 1.2% and 1% respectively, becoming top losers among the sectoral indices while Realty and Bank indices were the top gainers, up 0.9% and 0.3% respectively.

 

FIIs net sold stocks and stock futures worth Rs 2560 cr and 240 cr respectively but net bought index futures worth Rs 89 cr. DIIs were net buyers to the tune of Rs 640 cr.

 

Rupee appreciated 3 paise to end at 82.70/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.1%-0.6% but SGX Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 17650-17600 continued to be immediate support zone on the hourly chart while 17870-17970 was the immediate resistance zone.

 

Nifty, after touching a low of 17652, rebounded to close at 17721.

 

17650-17600 continues to be immediate support zone on the hourly chart, below which, 17353, the low made on Budget day, would be next downside level to eye; 17870-17970 continues to be immediate resistance zone.

 

For Banknifty, 42015, the top made on Budget day, is the upside level to eye; On the way down, 40700-40600 is the immediate support area, below which, 39420, the low made last week, would be bigger support to eye.

 

RBI's Monetary Policy Committee will announce it's interest rate decision today and is widely expected to deliver 25 bps repo rate hike.