14920 CONTINUES TO BE IMMEDIATE SUPPORT; 15257 IMMEDIATE HURDLE

 

14920 CONTINUES TO BE IMMEDIATE SUPPORT; 15257 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow rose 0.2% while S & P 500 was flat and Nasdaq fell a fourth of a percent

 

In remarks at the Economic Club of New York, Fed Chair Powell said the economy faces challenges in the labor market, and so monetary policy needs to stay “patiently accommodative.” and that the employment picture is a “long way” from where it needs to be.

 

The U.S. consumer price index rose 0.3% in January while core CPI was unchanged. Wholesale inventory data for December rose 0.3%, ahead of the 0.1% projection.

 

Brent and US crude rose 0.6% each to settle at $61.47 and $58.68 per barrel respectively after data from EIA showed U.S. crude inventories unexpectedly fell 6.6 million barrels as against expectation of  985,000-barrel increase.

 

The yield on the benchmark 10-year Treasury note fell 3bps to 1.126%, while that on the 30-year bond dropped to 1.915%. Spot gold rose 0.2% to $1,840.96 per ounce.

 

European markets fell 0.1%-0.6%. German Chancellor Angela Merkel is set to announce that Germany will extend its lockdown until March 14 amid concerns over new strains of the coronavirus.

 

AT HOME

 

After falling around nine tenth of a percent, benchmark indices surged in late noon trade to recoup all the losses and ended little changed. Sensex settled at 51309, down 19 points while Nifty lost 3 points to finish at 15106. Nifty mid-cap and small-cap indices however gained 0.8% and 0.7% respectively. BSE Realty and Consumer Durables indices rose 1.7% and 1.3% respectively, becoming top gainers among the sectoral indices while Telecom index and Bankex were the top losers, down 1.5% and 0.6% respectively.

 

FIIs net bought stocks and index futures worth Rs 1787 cr and 141 cr respectively but net sold stock futures worth Rs 241 cr. DIIs were net sellers to the tune of Rs 2076 cr.

 

Rupee appreciated 5 paise to end at 72.84/$.

 

OUTLOOK

 

Markets in China, Japan, South Korea and Taiwan are closed today for holidays. SGX Nifty is suggesting around 60 points lower start for our market.

 

In yesterday's report we had said that 15257, the top made Tuesday, was the immediate hurdle, while immediate support zone on the hourly chart had moved up to 14950-14920.

 

Nifty, after touching a low of 14977, rebounded to end at 15106 and is set to open near 15100 today.

 

15257, the top made Tuesday, continues to be immediate hurdle, upon crossover of which, 15500 would be the next upside target.

 

14950-14920 continues to be immediate support zone.

 

Trading longs can be held on to with the stop-loss of 14920.

 

Coal India, ITC and Powergrid will report their quarterly earnings today.