18135 CONTINUES TO BE IMMEDIATE HURDLE; 17850 IS IMMEDIATE SUPPORT

 

18135 CONTINUES TO BE IMMEDIATE HURDLE; 17850 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow gained 0.4% on Friday but S & P 500 and Nasdaq fell 0.3% and 0.6% respectively

 

US 10-year treasury yield fell 4 bps to 3.822%. Dollar index fell 0.2% to 103.881. Gold rose 0.3% to $1842 per ounce.

 

Brent crude futures fell 2.5% to $83 a barrel and WTI fell 2.7% to $76.34.

 

European markets fell 0.1%-0.4%

 

For the week, Dow and S & P 500 fell 0.1% and 0.3% respectively, for their third and second negative week in a row respectively. Nasdaq rose 0.6%.  WTI and Brent crude fell 3.9% and 4.2% respectively.

 

AT HOME

 

Benchmark indices slipped half a percent each, snapping a 3-day winning streak. Sensex settled at 61002, down 317 points while Nifty lost 91 points to finish at 17944. Nifty mid-cap and small-cap indices fell 0.8% and 0.6% respectively. Except 0.2% higher Oil & Gas index, all the NSE sectoral indices ended lower, with Realty and PSU Bank indices leading the losses, down 1.8% and 1.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 625 cr, 1079 cr and 1237 cr respectively. DIIs were net sellers to the tune of Rs 85 cr.

 

Rupee depreciated 11 paise to end at 82.83/$.

 

For the week, Sensex and Nifty gained half a percent each.

 

OUTLOOK

 

Today morning, Shanghai is up 0.4%, Nikkei is little changed while Hang Seng is down 0.1%. SGX Nifty is suggesting around 20 points higher start for our market.

 

In Friday's report we had said that 18135, the top made Thursday, which coincided with a trendline adjoining tops made on 30th December and 24th January, was the immediate hurdle while 17850 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty fell to 17884 before closing at 17944.

 

18135, the top made last week, which coincided with a trendline adjoining tops made on 30th December and 24th January, continues to be immediate hurdle; 17850 continues to be immediate support, upon breach of which, 17720 the bottom made last week, would be next downside levels to eye. Meanwhile, trading longs can be held on to with the stop-loss of 17850.

 

In case of Banknifty, upon breach of 40882, which is the low made on Friday as well as during the week, the correction can extend to 40000, where a trendline adjoining bottoms made on 30th January and 1st February is placed; 41979, the top made during the week, which roughly coincided with the top made on the Budget day, is the important immediate hurdle.