15080 CONTINUES TO BE IMMEDIATE SUPPORT

 

15080 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow rose 0.3%, S & P 500 was little changed while Nasdaq fell 0.6% as markets weighed improving economic data with rising inflation expectations. Rise in Chevron and Verizon helped the Dow.

 

Robust retail sales, industrial output and producer prices data signaled the economic recovery from the pandemic recession is gaining momentum as vaccine deployment progresses. Retail sales in the U.S. in January showed a 5.3% jump after declining 0.7% in December and beating the expected rise of 1.2% by a big margin. Producer prices jumped 1.3%.

 

Minutes of the latest Fed meeting showed participants expressed the need to “stay vigilant” amid recent signs of economic rebound, discussed expected near term inflation, and affirmed its commitment to keeping accommodative policy in place to support the ailing jobs market.

 

Brent crude gained 99 cents, or 1.6%, to settle at $64.34 a barrel, while WTI crude rose $1.09, or 1.8%, to $61.14 per barrel, both hitting their highest level since January 2020.

 

US 10-year treasury yield, after rising as high as 1.333% earlier in the day, retreated to 1.275%. Dollar index rose half a percent to 90.95. Spot gold fell 1.2% to $1,773.72 per ounce, it's lowest in over 2-months.

 

European markets fell 0.4%-1.1%. U.K. inflation growth surprised to the upside in January, rising by 0.7% in annual terms.

 

AT HOME

 

Sensex and Nifty slipped 0.8% and 0.7% respectively, extending the losing streak to second straight day. Sensex settled at 51703, down 400 points while Nifty lost 104 points to finish at 15208. Nifty mid-cap index however rose 0.3% and small-cap index ended flat. BSE Healthcare and IT indices fell 0.9% each, becoming the top losers among the sectoral indices, while Power and Telecom indices were the top gainers, up 1.3% and 1% respectively.

 

FIIs net bought stocks worth Rs 1008 cr but net sold index futures and stock futures worth Rs 182 cr and 651 cr respectively. DIIs were net sellers to the tune of Rs 1283 cr.

 

Rupee depreciated 5 paise to end at 72.74/$.

 

OUTLOOK

 

Today, Shanghai has opened after Lunar New Year holidays and is trading with gains in excess of 1%. Other Asian markets are trading with cuts of upto 0.4%. SGX Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report we had reiterated the view that 15080 continued to be immediate support on the hourly chart while 15500-15550 continued to be the upside target zone.

 

Nifty slipped to touch a low of 15197 before closing at 15208.

 

15080 continues to be immediate support on the hourly chart while 15500-15550 continues to be the upside target zone. Trading longs can be held on to with the stop-loss of 15080.