14490 IS THE IMMEDIATE HURDLE; 14100 NEXT SUPPORT

 

14490 IS THE IMMEDIATE HURDLE; 14100 NEXT SUPPORT

 

WORLD MARKETS

 

US markets were shut yesterday in honor of Martin Luther King Jr. Day. US futures are up around four tenth of a percent.

 

Brent crude fell 30 cents, or 0.5%, to $54.79 a barrel and U.S. oil was down by 21 cents, or 0.4%, at $52.15.

 

In Europe, except 0.2% lower FTSE, other markets gained 0.1%-0.5%.

 

Earlier, Chinese growth data showed that its GDP rose 2.3% last year, beating the estimated expansion of just over 2%. Retail sales however contracted 3.9% for the year.

 

AT HOME

 

Benchmark indices nosedived a percent each, after falling by the same magnitude on Friday. Sensex settled at 48564, down 470 points while Nifty lost 152 points to finish at 14281. Nifty mid-cap and small-cap indices plunged 2.1% and 1.8% respectively. Except 1.1% and 0.8% higher Energy and Consumer Durables indices, all the BSE sectroal indices ended in red, with Metal index leading the losses, down 4.1%, followed by 2.7% lower Utilities index.

 

FIIs net bought stocks and stock futures worth Rs 651 cr and 1327 cr respectively but net sold index futures worth Rs 267 cr. DIIs were net sellers to the tune of Rs 43 cr.

 

Rupee depreciated 20 paise to end at 73.27/$.

 

OUTLOOK

 

Janet Yellen, Biden’s designated nominee for Treasury Secretary and a former chair of the Federal Reserve, will appear before the Senate Finance Committee Today. Yellen’s prepared remarks call for the federal government to “act big” with its next Covid relief package.

 

Today morning, Hang Seng and Nikkei are up 2.3% and 1.2% respectively while Shanghai is off 0.1%. SGX Nifty is suggesting around 90 points higher start for our market.

 

In yesterday's report we had said that 14320 continued to be immediate support on the hourly chart, upon breach of which, 14100 would be the next support to eye.

 

Nifty broke 14320 support and plunged all the way to 14222 before closing at 14281. The benchmark is set to open above 14350 today.

 

20-DMA, placed around 14100, which also coincides with an upward sloping trendline adjoining bottoms made on 30th October and 21st December, is the next support to eye.

 

14490 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.