17972 IS THE IMMEDIATE HURDLE; 17650-17600 IMMEDIATE SUPPORT AREA

 

17972 IS THE IMMEDIATE HURDLE; 17650-17600 IMMEDIATE SUPPORT AREA

 

WORLD MARKETS

 

US indices fell 0.4%-1.6% on Friday after solid jobs report raised fears that the Federal Reserve could keep hiking interest rates.

 

Nonfarm payrolls surged by 517,000 jobs last month much higher than the expected 185000. The unemployment rate hit more than a 53-1/2-year low of 3.4%. December data was revised higher to show 260,000 jobs added instead of the previously reported 223,000.

 

US 10-year treasury yield jumped 13 bps to 3.526%. Dollar index rose 1.2% to 102.99. Gold plunged 2.5% to $1865 per ounce.

 

Brent crude futures fell 3% to $79.74 a barrel and WTI crude futures fell 3.4% to $73.22 a barrel.

 

In Europe, FTSE and CAC rose nearly a percent each but DAX fell 0.2%. The composite PMI showed euro zone business activity returned to growth in January for the first time in six months,

 

AT HOME

 

Benchmark indices surged a percent and half, their biggest gain since 11th November. Sensex settled at 60841, up 910 points while Nifty added 243 points to finish at 17854. Nifty mid-cap and small-cap indices however fell 0.2% and 0.4% respectively. Nifty PSU Bank and Financial Services indices surged 3.1% and 2.4% respectively, becoming top gainers among the sectoral indices while Pharma and Oil & Gas indices were the top losers, down 1% and 0.9% respectively.

 

FIIs net sold stocks worth Rs 932 cr but net bought index futures and stock futures worth Rs 2344 cr and 1042 cr respectively. DIIs were net buyers to the tune of Rs 1265 cr.

 

Rupee appreciated 34 paise to end at 81.83/$.

 

OUTLOOK

 

Today morning, Nikkei is up nearly a percent but Hang Seng and Shanghai are down 1.6% and 0.4% respectively. SGX Nifty is suggesting around 60 points lower start for our market.

 

In Friday's report we had said that 17972, the top made on the budget day, continued to be important immediate hurdle, while 17300-17200 continued to be important support area.

 

Nifty rose to touch a high of 17870 before closing at 17854.

 

17972, the top made on the Budget day, around which 34-DMA is also placed, continues to be immediate hurdle, upon crossover of which, 18201, the top made last to last week, would be next upside target; On the way down, 17650-17600 is the immediate support zone on the hourly chart, below which, 17353, the low made last week, would be next downside level to eye.

 

For Banknifty, 42015, the top made last week, is the immediate hurdle, upon crossover of which, 43078, the top previous week, would be the next upside target to eye; On the way down, 40600 is the immediate support on the hourly chart, below which, 39420, the low made last week, would be bigger support to eye.