22600 ABOVE 22126; STAY LONG WITH THE STOP-LOSS OF 21775

 

22600 ABOVE 22126; STAY LONG WITH THE STOP-LOSS OF 21775

 

WORLD MARKETS

 

U.S. indices fell 0.4%-0.8% on Friday after yet another hot inflation report stoked fears that Federal Reserve rate cuts may not arrive until later than anticipated this year.

 

The producer price index for January increased 0.3%, as against expectation of

a gain of 0.1%. Excluding food and energy, core PPI rose increased 0.5%, higher than the expectations for a 0.1% advance. Single-family housing starts, which account for the bulk of homebuilding, dropped 4.7% to a seasonally adjusted annual rate of 1.004 million units last month. U.S. consumer sentiment was little changed in February while one-year inflation expectations inched up. The University of Michigan’s preliminary reading on the overall index of consumer sentiment came in at 79.6 this month, compared with 79.0 in January.

 

U.S. 10-year treasury yield rose 5 bps to 4.283%. Dollar index was flat at 104.28. Gold rose 0.4% to $2013 per ounce.

 

WTI crude futures gained $1.16 or 1.5% to settle at $79.19 a barrel and Brent futures added 61 cents a barrel to settle at $83.47.

 

In Europe, FTSE surged 1.5% while DAX and CAC gained 0.4% and 0.3% respectively. U.K. retail sales rose by 3.4% month on month, higher than the 1.5% growth forecast.  It was the biggest monthly rise since April 2021, and follows a record fall in December.

 

For the week, U.S. indices fell 0.1%-1.3%. snapping five-week winning streak. U.S. crude gained about 3% for the week, settling at its highest level since Nov. 6. Brent rose 1.5% to settle at the highest level since Jan. 26.

 

AT HOME

 

Sensex and Nifty gained 0.6% and 0.5% respectively, extending the winning streak to fourth straight session and closed at the highest level after mid-January. Sensex settled at 72426, up 376 points while Nifty added 130 points to finish at 22040. Nifty mid-cap and small-cap indices gained 0.6% each. Except 0.6% and 0.4% lower Oil & Gas and PSU Bank indices, all the NSE sectoral indices ended higher, with Auto and Pharma indices being the top gainers, up 2.2% and 1.6% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 253 cr, 640 cr and 1260 cr respectively. DIIs were net buyers to the tune of Rs 1571 cr.

 

Rupee appreciated 3 paise to end at 83.01/$.

 

For the week, Sensex and Nifty gained 1.2% each while the latter posting highest ever weekly close.

 

OUTLOOK

 

The People’s Bank of China yesterday held a key policy rate steady as expected.

 

Today morning, Shanghai is up nearly a percent while Hang Seng and Nikkei are down 1% and 0.3% respectively. GIFT Nifty is suggesting around 50 points higher start for our market.

 

In Friday's report we had said that 22126, the top made on 2nd February, was the next upside level to eye while 21750 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty rose to touch a high of 22068 before closing at 22040 and is set to open near 22100 today.

 

22126, the top made on 2nd February, is the next upside level to eye, upon crossover of which, 22550-22600 would be next target area. 21775 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 47029, followed by 47736, the 61.8% and 78.6% retracement levels of the 48636-44429 fall, are the upside levels to eye. 45600 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

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