17700-17770 IS NEXT TARGET AREA; 17400 IS IMMEDIATE SUPPORT

 

17700-17770 IS NEXT TARGET AREA; 17400 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices surged 1.2%-2% on Friday as treasury yields eased.

 

US 10-year treasury yield fell 11 bps to 3.956%. Dollar index fell 0.4% to 104.53. Gold jumped 1.1% to $1856 per ounce.

 

ISM February non-manufacturing PMI dipped to 55.1 from a reading of 55.2 in January.

 

Brent crude futures rose 0.9% to $85.47 a barrel and WTI crude futures rose 1.3% to $79.20.

 

In Europe, FTSE was little changed while DAX and CAC rose 1.6% and 0.9% respectively. A flash estimate for the euro zone showed headline inflation eased from 8.6% to 8.5%, but this was above a consensus estimate; while core inflation rose from 5.3% to 5.6%. Price rises unexpectedly accelerated in Germany, France and Spain.

 

ECB President Christine Lagarde said Thursday that getting inflation to its 2% target will still take time and that the previously signaled 50 basis point hike in March is still on the cards,

 

For the week, the Dow posted a 1.75% gain and snapped a four-week losing streak. The S&P 500 closed up 1.90% on the week and its first positive week in the last four. The Nasdaq ended the week 2.6% higher.

 

US 10-year treasury yield rose 1 bps. Dollar index fell 0.7%. Gold jumped 2.5% for its best week since mid-January.

 

AT HOME

Benchmark indices surged a percent and half, their best day since 11th November 2022. Sensex settled at 59808, up 900 points while Nifty added 272 points to finish at 17594. Nifty mid-cap and small-cap indices rose 0.7% and 0.8% respectively. All the BSE sectoral indices ended higher, with PSU Bank and Metal indices being the top gainers, up 5.4% and 3.6% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 246 cr, 3938 cr and 2475 cr respectively. DIIs were net buyers to the tune of Rs 2090 cr.

 

Rupee appreciated 63 paise to end at 81.97/$.

 

For the week, Sensex and Nifty gained 0.6% and 0.7% respectively.

 

OUTLOOK

 

Today morning, Nikkei is up more than a percent while Hang Seng and Shanghai are marginally in the red. SGX Nifty is suggesting around 30 points higher start for our market.

 

In Friday's report we had said that 17500 continued 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.

 

Nifty crossed 17500 and surged all the way to 17644 before closing at 17594.

 

20 and 34-DMAs are placed around 17700 and 17770 respectively, making 17700-17770 next target/ resistance area on the way up. Once this immediate resistance zone is crossed, 18004, the top made last week, would be next upside level to eye; On the way down, 17400 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 42000, around which a trendline adjoining tops made since 14th December is placed, is the next upside target/resistance to eye; 40500 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.