22224 IS THE NEXT SUPPORT; 22526 IMMEDIATE HURDLE

 

22224 IS THE NEXT SUPPORT; 22526 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow inched up 0.1% while S & P 500 and Nasdaq fell 0.1% and 0.4% respectively, ahead of Tuesday's CPI data.

 

U.S. 10-year treasury yield rose 3 bps to 4.10%. Dollar index inched up 0.1% to 102.84. Gold too rose 0.1% to $2182 per ounce.

 

WTI crude futures eased 0.1% to settle at $77.93 a barrel while Brent futures added 0.2% to settle at $82.21 a barrel.

 

In Europe, FTSE inched up 0.1% while DAX and CAC fell 0.4% and 0.1% respectively.

 

AT HOME

 

Sensex and Nifty fell 0.8% and 0.7% respectively, their biggest cut in the month so far. Sensex settled at 73502, down 616 points while Nifty lost 160 points to finish at 22332. Nifty mid-cap and small-cap indices fell 0.4% and 2% respectively, with the latter posting it's worst day in a month and closing at the lowest level since 24th January. Except 0.4% and 0.04% higher Healthcare and Pharma indices, all the NSE sectoral indices ended lower, with Media and PSU Bank indices being the top losers, down 2.9% and 1.6% respectively.

 

FIIs net bought stocks and stock futures worth Rs 4213 cr and 895 cr respectively but net sold index futures worth Rs 173 cr. DIIs were net buyers to the tune of Rs 3238 cr.

 

Rupee appreciated 3 paise to end at 82.76/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 1.2% and 0.1% respectively while Nikkei is down 1%. GIFT Nifty is suggesting a modestly higher start for our market.

 

In yesterday’s report we had said that 22700-22750 was the next target area for Nifty; 22350-22325 is the immediate support zone on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty plunged all the way to 22307 before closing at 22332.

 

22224, the low made last week, is the next downside level/support to eye; 22526, the top made yesterday, is the immediate hurdle.

 

For Banknifty, 46900, followed by 46600, which are the 50% and 61.8% retracement levels of the recent 45661-48161 upmove, are the next downside levels to eye; 47650-47700 is the immediate resistance zone.

 

India's February CPI and January IIP data will be released today.

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