17500 CONTINUES TO BE IMMEDIATE HURDLE

 

17500 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow was little changed while S & P 500 and Nasdaq fell 0.5% and 0.7% respectively as bond yields continued their climb.

 

The benchmark 10-year yield briefly topped 4% for the first time since November and settled 7 bps higher at 3.996%. The 1-year Treasury yield rose above 5%. Dollar index fell 0.6% to 104.37. Gold rose 0.5% to $1836 per ounce.

 

ISM Manufacturing Index registered 47.7% reading, slightly below expected reading of 47.8%.

 

Brent crude futures rose 1% to $84.31 a barrel and WTI rose 0.8% to $77.69.

 

In Europe, FTSE rose 0.5% but DAX and CAC fell 0.4% and 0.5% respectively. A German flash estimate put February inflation at 9.3%, which would be an increase from 9.2% in January.

 

Data earlier showed China's official manufacturing PMI rose to 52.6 in February, the highest since April 2012. Non-manufacturing activity also grew at a faster pace in February.

 

AT HOME

 

Benchmark indices climbed 0.8% each, snapping 8-session losing streak. Sensex settled at 59411, up 448 points while Nifty added 147 points to finish at 17451. Nifty mid-cap and small-cap indices surged 1.6% and 1.3% respectively. All the NSE sectoral indices ended in green, with Metal and PSU Bank indices on the top, up 4% and 3% respectively.

 

FIIs net sold stocks worth Rs 425 cr but net bought index futures and stock futures worth Rs 638 cr and 976 cr respectively. DIIs were net buyers to the tune of Rs 1499 cr.

 

Rupee appreciated 17 paise to end at 82.50/$.

 

India's GST mop-up rose 12% to Rs. 1.5 lk cr. in February. India's S & P Global Manufacturing PMI slipped to a four-month low of 55.3 in February, against 55.4 in January.

 

OUTLOOK

 

Today morning, Shanghai is marginally higher while Hang Seng and Nikkei are down 1.1% and 0.4% respectively. SGX Nifty is suggesting around 65 points lower start for our market.

 

In yesterday's report we had said that 17205, the 78.6% retracement level of the 16747-18887 upmove, continued to be next downside level to eye and that immediate hurdle on the hourly chart had moved lower to 17500, with the stop-loss of which, trading shorts could be held on to.

 

Nifty rose to touch a high of 17467 before closing at 17450. The benchmark is set to open near 17400 today.

 

17500 continues to be immediate hurdle for Nifty, upon crossover of which, 17590 and 17695, the 38.2% and 50% retracement levels of the recent 18135-17255 fall, would be next upside levels to eye; 17205, the 78.6% retracement level of the 16747-18887 upmove, continues to be next support.

 

For Banknifty, 41000 and 41300 are next upside targets; 39600-39420 is the support area; 40200-40100 is the immediate support area.