22126 NEXT; STAY LONG WITH THE STOP-LOSS OF 21750

 

22126 NEXT; STAY LONG WITH THE STOP-LOSS OF 21750

 

WORLD MARKETS

 

U.S. indices gained 0.3%-0.9% with the S&P 500 notching yet another record high.

 

Retail sales dropped 0.8% in January, much more than the 0.3% decline expected. Initial claims for state unemployment benefits fell 8,000 to a seasonally-adjusted 212,000 for the week ended Feb. 10. U.S. industrial production last month slid to a weaker-than-expected -0.1%, the lowest since October. However, the Empire State manufacturing index improved to -2.4 in February, after sinking to -43.7 in January, the lowest reading since May 2020. The Philadelphia Fed manufacturing index rose to 5.2 in February, well above expectations.

 

U.S. 10-year treasury yield fell 2 bps to 4.236%. Dollar index fell 0.4% to 104.28. Gold rose 0.6% to $2004 per ounce.

 

WTI crude futures gained 1.8% to settle at $78.03 a barrel, while Brent futures settled at $82.86 a barrel, up 1.5%.

 

European markets gained 0.4%-1.2%. The U.K. economy contracted by 0.3% in the final quarter of 2023, pushing the country into a technical recession after third-quarter growth was revised down to -0.1%.

 

Japan lost its spot as the world’s third-largest economy, with GDP falling 0.4% in the fourth quarter, versus expectations for 1.4% growth. This follows a 3.3% contraction in the third quarter.

 

AT HOME

 

Benchmark indices rose three tenth of a percent each, extending the winning streak to third straight day and closing at the highest level after 7th February. Sensex settled at 72050, up 227 points while Nifty added 70 points to finish at 21910. Nifty mid-cap and small-cap indices surged 1% and 1.3% respectively. Nifty PSU Bank and Oil & Gas indices climbed 3.3% and 2.5% respectively, becoming top gainers among the sectoral indices while FMCG and Healthcare indices were the top losers, down 1% and 0.4% respectively.

 

FIIs net sold stocks and stock futures worth Rs 3064 cr and 1780 cr respectively but net bought index futures worth Rs 492 cr. DIIs were net buyers to the tune of Rs 2277 cr.

 

Rupee depreciated 1 paise to end at 83.04/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.7% each and GIFT Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 21915, around which a trendline adjoining recent tops on the hourly chart was placed, was the immediate resistance to eye, upon crossover of which, 22126, the top made  on 2nd February, would be next target while 21530, the low made Wednesday, was the immediate support.

 

Nifty, after touching a high of 21953, closed at 21910 and is set to open above 21950 today.

 

22126, the top made on 2nd February, is the next upside level to eye; 21750 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 46900 is the next upside target; 45500 is the immediate support.

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