16966 IS THE IMMEDIATE HURDLE; 16265 BELOW 16410

 

16966 IS THE IMMEDIATE HURDLE; 16265 BELOW 16410

 

WORLD MARKETS

 

US indices climbed 1.6%-2.4%, snapping 3-day losing streak.

 

President Joe Biden in a press conference urged Americans to get their booster shots and also reiterated that the U.S. will not bring back the strict lockdowns that were imposed at the start of the pandemic.

 

Some economists lowered their growth forecasts for the United States after Democratic lawmaker Sen. Joe Manchin’s refusal to approve Biden’s $1.75 trillion spending plan.

 

US 10-year treasury yield rose 4 bps to 1.47%. Dollar index was little changed at 96.48. Gold eased 0.1% to $1788 per ounce.

 

Brent crude settled $2.46, or 3.4%, higher at $73.98 per barrel, and WTI crude rose $2.51, or 3.66%, to settle at $71.12 per barrel.

 

European markets gained 1.4%-1.8%.

 

AT HOME

 

After climbing just under 2%, benchmark indices gave away half of the gains in noon to end 0.9% higher. Sensex settled at 56319, up 497 points while Nifty added 156 points to finish at 16770. Nifty mid-cap and small-cap indices gained 1.3% each.

 

All the BSE sectoral indices ended in green, with Metal and Consumer Durables indices leading the tally, up 3% and 2.2% respectively.

 

FIIs net sold stocks worth Rs 1210 cr but net bought index futures and stock futures worth Rs 3068 cr and 2165 cr respectively. DIIs were net buyers to the tune of Rs 1405 cr.

 

Rupee appreciated 31 paise to end at 75.60/$.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.7% while Nikkei and Shanghai are little changed. SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that 16840-16966, the gap created by Monday's gap-down opening, would now act as the immediate resistance zone and that trading shorts can be held on to with the stop-loss of 16966.

 

Nifty, after touching a high of 16936, slipped to end at 16770.

 

16966, the upper end of the gap created by Monday's gap-down opening, continues to be immediate hurdle to eye, upon crossover of which, 20-DMA, placed around 17150, would be the next hurdle.

 

16410, the bottom made Monday, is the immediate support, below which, 200-DMA, placed around 16265, would be the next level to eye.

 

For Banknifty, 35231-35535, the gap created by Monday's gap-down opening, is the immediate resistance zone; 34018, the bottom made Monday, is the immediate support, below which, 33800 would be next support.