18515 BELOW 18647; 18887 CONTINUES TO BE HURDLE

 

18515 BELOW 18647; 18887 CONTINUES TO BE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.6%-1% on Friday.

 

U.S. 10-year treasury yield fell 6 bps to 3.737%. Dollar index rose half a percent to 102.87. Gold gained 0.4% to reach $1920 per ounce.

 

Brent crude fell 0.4% to $73.85 barrel and WTI crude fell 0.50% to $69.16 a barrel.

 

European markets fell 0.5%-1%.

 

For the week, Dow and S&P 500 fell 1.7% and 1.4% respectively, ending three-week and five-week winning streak respectively. Nasdaq dropped 1.4%, snapping an eight-week win streak and posting its worst weekly performance since March.

 

AT HOME

 

Sensex and Nifty fell 0.4% and 0.6% respectively, extending the losing streak to second straight session. Sensex settled at 62979, down 259 points while Nifty lost 105 points to finish at 18665. Nifty mid-cap and small-cap indices tumbled 1.2% each for their worst fall since 13th March and 27th March respectively. Except 0.2% higher Pharma index, all the NSE sectoral indices ended in red, with Metal and Media indices being the top losers, down 2.5% and 2.1% respectively.

 

FIIs net sold stocks and index futures worth Rs 345 cr and 248 cr respectively but net bought stock futures worth Rs 494 cr. DIIs were net sellers to the tune of Rs 684 cr.

 

For the week, Sensex and Nifty fell 0.6% and 0.8% respectively, snapping a 4-week winning streak. Nifty mid-cap and small-cap indices saw first red week after 12-consecutive positive weeks.

 

OUTLOOK

 

Today morning, Nikkei is marginally in the green, Hang Seng is flat while Shanghai is down 0.8%. SGX Nifty is suggesting around 20 points higher start for our market.

 

In Friday's report we had said that 18887, the high made in December 2022, continued to be immediate hurdle while 18660, the low made Tuesday, continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty fell to 18647 before closing at 18665.

 

18887, the top made in December 2022, which was retested last week, continues to be important immediate hurdle, a crossover of which is required for a fresh upmove; On the way down, 18647, the low made on Friday, which roughly coincided with 20-DMA, is the immediate support, upon breach of which, 34-DMA, placed around 18515, would be next downside level to eye.

 

For Banknifty, 43345, the low made last week, which roughly coincided with the low made the previous week, is the immediate support, upon breach of which, 42800-42600 would be next support area; 44000-44100 is the immediate resistance zone, above which, 44500 would be bigger hurdle to eye.