14635 CONTINUES TO BE IMMEDIATE SUPPORT; 15100 IMMEDIATE HURDLE

 

14635 CONTINUES TO BE IMMEDIATE SUPPORT; 15100 IMMEDIATE HURDLE

 

WORLD MARKETS

 

After starting with cuts of more than a percent, Dow and S & P 500 rebounded to end marginally in the green. Nasdaq, after plunging nearly 4% at the open, recovered to end lower by just half a percent. The intraday turnaround came after Fed Chair Powell after indicated that the central bank was not moving toward changing its dovish policy stance.

 

In his testimony to Congress, Powell said that “The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved.”

 

Tesla closed 2.2% lower after sliding as much as 13% earlier.  Apple’s stock dipped just 0.1% after falling 6% earlier. Energy and financial stocks gained.

 

December data for the S&P CoreLogic Case-Schiller home price index showed the biggest price gain since 2013.

 

Brent crude rose 18 cents, or 0.3%, to $65.42 a barrel, while U.S. crude settled 3 cents lower at $61.67 per barrel.

 

The yield on the benchmark 10-year Treasury note fell to 1.353%, while the yield on the 30-year Treasury bond climbed to 2.19%. The dollar index inched up 0.2%. Spot gold fell 0.3% to $1,803.62 an ounce.

 

In Europe, FTSE and CAC rose 0.2% each while DAX slipped 0.6%. Euro zone inflation rose 0.2% month-on-month in January, breaking from a months-long trend of falling prices. British government said it plans to have all coronavirus restrictions lifted by June 21.

 

AT HOME

 

Bulls had a sigh of relief as Sensex and Nifty ended marginally higher, snapping five-day losing streak. Sensex settled at 49751, up 7 points while Nifty added 32 points to finish at 14707. Nifty mid-cap and small-cap indices climbed 1% and 0.9% respectively. BSE Metal and Realty indices soared 3.7% and 2.9% respectively, becoming top gainers among the sectoral indices while Bankex and Finance indices were the top losers, down 0.5% and 0.3% respectively.

 

FIIs net sold stocks and index futures worth Rs 1569 cr and 160 cr respectively but net bought stock futures worth Rs 259 cr. DIIs were net buyers to the tune of Rs 217 cr.

 

Rupee appreciated 5 paise to end at 72.45/$.

 

With effect from 31st March, Tata Consumer will replace GAIL in Nifty.

 

OUTLOOK

 

Today morning, Nikkei is down half a percent, Shanghai is little changed while Hang Seng is up 0.3%. SGX Nifty is suggesting around 100 points higher start for our market.

 

In yesterday's report we had said that 14635, the low made Monday, also coincided with the 34-DMA and hence is the important immediate support to eye.

 

Nifty, after touching a low of 14651, rebounded to end at 14707 and is set to open near 14800 today.

 

14635, the low made Monday, continues to be important immediate support to eye.

 

15100 continues to be immediate hurdle on the hourly chart, with the stop-loss of which, positional shorts can be held on to.