18050 CONTINUES TO BE IMMEDIATE HURDLE; 17613 IMMEDIATE SUPPORT

 

18050 CONTINUES TO BE IMMEDIATE HURDLE; 17613 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices gained 0.3%-0.4%, awaiting a decision from the Federal Reserve on its tapering schedule.

 

Federal Reserve is expected to announce an end to its bond-buying program at the conclusion of its two-day meeting today. Markets would also watch out for clues on when the central bank plans to raise interest rates.

 

US 10-year treasury yield fell 2.8 bps to 1.544%. Dollar index rose 0.2% to 94.106. Spot gold was down 0.3% at $1,787 per ounce.

 

Brent crude eased 21 cents, or 0.3%, to $84.50 a barrel while WTI crude fell 48 cents, or 0.6%, to $83.57.

 

In Europe, FTSE fell 0.2% while DAX and CAC gained 0.9% and 0.5% respectively.

 

AT HOME

 

After rising nearly half a percent in the initial trade, benchmark indices slipped to end lower by a fifth of a percent. Sensex settled at 60029, down 109 points while Nifty finished at 17888, down 40 points. Nifty mid-cap and small-cap indices however gained 0.8% and 1% respectively. BSE Realty index soared 3.3%, becoming the top gainer among the sectoral indices, followed by 1.1% higher Consumer Durables index. Metal and Energy indices were the top losers, down 1.9% and 1.2% respectively.

 

FIIs net bought stocks worth Rs 245 cr but net sold index futures and stock futures worth Rs 1528 cr and 396 cr respectively. DIIs were net sellers to the tune of Rs 6 cr.

 

Rupee appreciated 19 paise to end at 74.68/$.

 

OUTLOOK

 

Nikkei is closed today while Hang Seng and Shanghai are little changed. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 20-DMA, placed around 18050, continued to be immediate hurdle while 17613, the low made on Friday, continued to be immediate support.

 

Nifty, after touching a high of 18012, slipped to end at 17888.

 

20-DMA, placed around 18050, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 18342, the top made last week, would be the next upside target.

 

17613, the low made on Friday, continues to be immediate support.

 

40600-40800 is the immediate resistance zone for Banknifty; 38426, the low made Friday, continues to be important immediate support.

 

SBI and Eicher Motors will report their quarterly earnings today.