14878 ABOVE 14640; 14264 IS THE IMMEDIATE SUPPORT

 

14878 ABOVE 14640; 14264 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

On Friday, US indices surged 1.2%-1.7%, with the S & P 500 hitting a record high.

 

Yesterday, Dow rose 0.3% while S & P 500 and Nasdaq fell 0.1% and 0.6% respectively.

 

President Biden is expected to unveil an infrastructure plan, which could cost north of $3 trillion, when he travels to Pittsburgh on Wednesday.

 

The yield on the benchmark 10-year Treasury note rose to 1.71% while that on the 30-year Treasury bond rose to 2.41%.

 

Dollar index rose 0.2% to 92.94. Spot gold fell 1.1% to $1,713.52 per ounce.

 

Brent oill rose 41 cents to $64.98 a barrel while U.S. crude rose 59 cents to settle at $61.56 a barrel.

 

In Europe, FTSE fell 0.1% while DAX and CAC rose 0.4% each.

 

AT HOME

 

Sensex and Nifty climbed 1.2% and 1.3% respectively on Friday, snapping two-day losing streak and recouping 80% of Thursday's losses. Sensex settled at 49008, up 568 points while Nifty added 182 points to finish at 14507. Nifty mid-cap and small-cap indices rose 1.6% and 1.2% respectively. All the BSE sectoral indices ended in green, with Metal and Consumer Durables indices leading the tally, up 3.5% and 2.8% respectively.

 

FIIs net sold stocks worth Rs 50 cr but net bought index futures and stock futures worth Rs 1880 cr and 718 cr respectively. DIIs were net buyers to the tune of Rs 1703 cr.

 

Rupee appreciated 11 paise to end at 72.51/$.

 

For the week, Sensex and Nifty fell 1.7% and 1.6% respectively, extending the losing streak to second consecutive week.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are marginally in the red while Hang Seng is up 0.4%. SGX Nifty is trading around 14778, suggesting around 170 points higher start when compared to Friday's close of Nifty futures.

 

Just to recall, we had turned our view on Nifty negative after 15060 was breached and have been advising holding on to short positions with a trailing stop-loss.

 

In Friday's report we had said that 20-week moving average, placed around 14120, was the next support and had advised trailing stop-loss in short positions to 14640.

 

Nifty rose to close at 14507 and is set to open near 14650 today.

 

A sustained crossover of 14640 hurdle will confirm a "Buy" on the hourly chart and would pave the way for further upmove. We would wait for the crossover of first hour high for this. If that happens, 14878, the top made last week, would be the next upside level to eye.

 

14264, the low made last week, roughly coincides with the trendline adjoining bottoms made on 21st December and 29th January and hence is the immediate support to eye.