17500 CONTINUES TO BE IMMEDIATE HURDLE; 17205 IS THE SUPPORT

 

17500 CONTINUES TO BE IMMEDIATE HURDLE; 17205 IS THE SUPPORT

 

WORLD MARKETS

 

US indices rose 0.7%-1% after Atlanta Fed president said he’s “firmly” in favor of sticking with quarter-point hikes

 

Weekly jobless claims fell again last week, pointing to a still strong jobs market. Another Labor Department report showed labor costs grew much faster than previously estimated in the fourth quarter.

 

US 10-year treasury yield rose 7 bps to 4.062%. Dollar index rose 0.6% to 104.96. Gold was little changed at $1835 per ounce.

 

Brent as well as WTI crude futures rose 0.4% each to $81.08 and $78.01 a barrel respectively.

 

European markets gained 0.2%-0.7%. Eurozone inflation came in at 8.5% in February, higher than 8.2% estimate, but down from 8.6% in January on lower energy prices. Core inflation, which strips out food and energy, rose from 5.3% to 5.6%.

 

AT HOME

 

Sensex and Nifty slipped 0.84% and 0.74% respectively, ending in red for the ninth session in last 10. Sensex settled at 58909, down 501 points while Nifty lost 129 points to finish at 17321. Nifty mid-cap and small-cap indices fell 0.3% and 0.2% respectively. Except 2.1% higher Realty index and marginally higher Oil & Gas index, all the NSE sectoral indices ended in red, with IT index being the top loser, down 1.3%, followed by 0.9% lower Auto index.

 

FIIs net bought stocks worth Rs 12771 cr which include Rs. 15446 cr. on account of Adani block deal. FIIs net sold index futures and stock futures worth Rs 532 cr and 2581 cr respectively. DIIs were net buyers to the tune of Rs 2129 cr.

 

Rupee depreciated 9 paise to end at 82.59/$.

 

OUTLOOK

 

Japan’s unemployment rate reached 2.4% in January, the lowest level since February 2020.

 

Today morning, Asian markets are trading with gains of 0.25%-1.25% and SGX Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 17500 continued to be immediate hurdle for Nifty, while 17205, the 78.6% retracement level of the 16747-18887 upmove, continued to be next support.

 

Nifty touched a low of 17306 before closing at 17321.

 

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 is next upside targets; 40200-40100 is the immediate support area.