13850 BELOW 14191; 14526 IS THE IMMEDIATE HURDLE

 

13850 BELOW 14191; 14526 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.7%-0.9% on Tuesday, extending the losing streak to second consecutive day, as reopening plays led the market lower amid renewed concerns about rising new Covid cases globally

 

Yesterday, Dow and S & P 500 rose 0.9% each while Nasdaq climbed 1.2%, snapping a two-day losing streak, as companies tied to the economy reopening led the way higher.

 

Brent crude fell $1.30, or 2%, to $65.27 a barrel, while WTI crude settled 2.1%, or $1.32, lower at $61.35 per barrel, falling for a second day to their lowest in a week on a surprise build in U.S. crude inventories and concerns surging COVID-19 cases in India.

 

The yield on the benchmark 10-year Treasury note was flat at 1.57%. Spot gold rose 0.8% to $1,791.51 per ounce.

 

European markets gained 0.3%-0.7%.

 

AT HOME

 

After rising nearly a percent at the open, benchmark indices nosedived around a percent and half from the top of the day to end lower by about half a percent, extending the losing streak to second straight day and closing at the lowest level after January 2021. Sensex lost 243 points to settle at 47705 while Nifty finished at 14296, down 63 points. Nifty mid-cap and small-cap indices however gained 0.3% and 1% respectively. BSE IT and Teck indices were the top losers among the sectoral indices, down 1% and 0.8% respectively while Healthcare was the top gainer, up 1.2%, followed by 0.9% higher Auto and Capital Goods indices.

 

FIIs net sold stocks and stock futures worth Rs 1082 cr and 442 cr respectively but net bought index futures worth Rs 307 cr. DIIs were net buyers to the tune of Rs 1323 cr.

 

Rupee ended unchanged at 74.87/$.

 

India reported a record daily covid cases of nearly 3 lac while daily death number surged to 2023.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.8% and 0.3% respectively while Shanghai are marginally in the red. SGX Nifty is trading around 14170, suggesting around 125 points lower start when compared to Tuesday's close of Nifty future.

 

In Tuesday's report we had said that 14559, the upper end of the gap created by Monday's gap-down opening, would now act as immediate hurdle while 14191, the bottom made Monday, would be the immediate support to eye.

 

Nifty, after touching a high of 14527, reversed to end at 14296 and is set to open below 14200 today.

 

14191, the bottom made Monday, continues to be immediate support, upon sustained trading below which, 13900-13850 would be the next support zone to eye.

 

14527, the top made Monday, would act as immediate hurdle.