NIFTY MOVES CLOSER TO 10276 SUPPORT AFTER BREACHING 10398; 10500 IS IMMEDIATE HURDLE

NIFTY MOVES CLOSER TO 10276 SUPPORT AFTER BREACHING 10398; 10500 IS IMMEDIATE HURDLE

WORLD MARKETS

US markets were shut yesterday for President's Day.

European markets fell 0.5%-1% with Italy leading the losses.

Oil prices rose to touch their highest levels in two weeks with Brent up 1.2% at $65.61 and WTI up 1.3% at $62.50 a barrel.

AT HOME

Benchmark indices ended lower by seven tenth of a percent to end at the lowest level in more than two months. Sensex fell 236 points to settle at 33775 while Nifty finished at 10378, down 74 points. BSE mid-cap and small-cap indices lost 1% each. All the BSE sectoral indices ended in red with Capital Goods and Metal indices leading the tally, down 1.6% each.

FIIs net sold stocks and index futures worth Rs 896 cr and 1153 cr respectively but net bought stock futures worth Rs 408 cr. DIIs were net buyers to the tune of Rs 587 cr.

OUTLOOK

Today morning, Nikkei and Hang Seng are down 1% and 0.6% respectively and SGX Nifty is suggesting about 50 points lower start for our market.

In yesterday's report we had reiterated the view that 10398 is the immediate support below which Nifty can slip to retest 10276 bottom made on 6th February.

Yesterday, Nifty broke the 10398 support in the first hour itself and plunged all the way to 10302 before closing at 10378 and is set to open around 10325 today.

10276 continues to be crucial support to eye a decisive breach of which can lead to next leg of correction. 200 DMA, placed around 10080, would be the next major support if that happens.

Immediate resistance on the hourly chart is placed around 10500, upon crossover of which 10638, the top made on 8th February, would be the next hurdle to eye.