17500 IS THE IMMEDIATE HURDLE; 16836 IMMEDIATE SUPPORT

 

17500 IS THE IMMEDIATE HURDLE; 16836 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices soared 1.6%-3.1% on Friday as technology stocks, led by Apple saw a sharp upmove. Dow and S & P 500 posted their best day since December 6 and June 2020 respectively.

 

Shares of Apple jumped nearly 7% after the company reported its largest single quarter in terms of revenue ever even amid supply challenges and the lingering effects of the pandemic. On the downside, Chevron fell around 3% after missing earnings expectations and Caterpillar dipped about 5% even after it topped profit estimates.

 

December’s core personal consumption expenditures price index, the Fed’s preferred inflation gauge, jumped 4.9% y-o-y for its hottest reading since September 1983. Personal income rose 0.3% for the month, a touch lower than the 0.4% estimate.

 

US 10-year treasury yiled fell 3 bps to 1.773%. Dollar index was flat at 97.21. Gold fell a third of a percent to $1791 an ounce, extending the losing streak to third straight day.

 

Brent crude futures settled 69 cents, or 0.8%, higher at $90.03 per barrel and WTI futures settled 21 cents higher at $86.82 per barrel.

 

European markets fell 0.8%-1.3%. France’s economy grew by 0.7% in the fourth quarter, bringing the full-year growth rate to a five-decade high of 7% in 2021 following an 8% contraction in 2020. Spanish GDP grew 2% q-o-q, also exceeding expectations and bringing annual growth to 5%. The German economy however contracted by more than expected 0.7% q-o-q as renewed Covid-19 measures weighed on activity. Yearly growth stood at 2.8%.

 

For the week, Dow and S & P 500 gained 1.3% and 0.8% respectively, breaking a three-week losing streak. Nasdaq was flat for the week. Main European markets fell 0.4%-1.8%.  Asian markets saw deep cuts ranging from 2.9%-5.7%.

 

Dollar ind surged 1.6% for its biggest weekly rise in seven months. Gold tumbled 2.3% for its worst week since late November. set for their sixth weekly gain, amid concerns of tight supplies as major producers continue their policy of limited output increases amid rising fuel demand. amid geopolitical tensions between Russia, the world’s second-largest oil producer and a key natural gas provider to Europe, and the West over Ukraine as well as threats to the United Arab Emirates from Yemen’s Houthi movement that have raised concerns about energy supply.

 

AT HOME

 

After rising a percent and half, benchmark indices gave away all the gains in noon plunge to end marginally in the red. Sensex settled at 57200, down 76 points while Nifty lost 8 points to finish at 17101. Nifty mid-cap and small-cap indices however gained 1.5% and 1% respectively. BSE Healthcare index rose 1.1%, becoming top gainer among the sectoral indices, followed by 0.9% higher Basic Materials, IT and Telecom indices. Bankex and Auto indices were the top losers, down 0.8% and 0.6% respectively.

 FIIs net sold stocks and index futures worth Rs 5045 cr and 1728 cr respectively but net bought stock futures worth Rs 1245 cr. DIIs were net buyers to the tune of Rs 3359 cr.

Rupee appreciated 3 paise to end at 75.04/$.

 

For the week, Sensex and Nifty tumbled 3.1% and 2.9% respectively, extending the losing streak to second straight week.

 

OUTLOOK

 

Mainland China and South Korea’s markets are closed toay for the Lunar New Year eve. Nikkei and Hang Seng are up 0.8% and 0.5% respectively. SGX Nifty is suggesting around 115 points higher start for our market.

 

In Friday's report we had said that 16836 continued to be important immediate support while 34-DMA, placed around 17500, was the immediate hurdle.

 

Nifty, after touching a high of 17373, slipped to end at 17101 but is set to open above 17200 today.

 

34-DMA, placed around 17500, continues to be immediate hurdle; 16836, the low made last week, continues to be important immediate support.

 

For Banknifty, 38422, the top made on Friday, is the immediate hurdle, upon crossover of which, 38855 and 40160 would be next upside levels to eye. 37000 is the immediate support on the hourly chart.

 

16836 CONTINUES TO BE IMPORTANT SUPPORT; 17500 IMMEDIATE HURDLE

 

16836 CONTINUES TO BE IMPORTANT SUPPORT; 17500 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow ended little changed while S & P 500 and Nasdaq fell 0.5% and 1.4% respectively as robust economic data strengthened the case for an interest rate hike by the Federal Reserve in March.

 

U.S. GDP grew 6.9% in the fourth quarter of 2021 compared to the year before, beating 5.5% expectation. For 2021, US GDP grew 5.7%, posting its best performance in nearly four decades.

 

US 10-year treasury yield fell 6 bps to 1.803%. Dollar index surged 0.75% to 97.20, its highest level after July 2020. Gold plunged 1.2% to $1797 per ounce.

 

Shares of Apple popped nearly 5% in after-hours trading after the company reported its largest single quarter in terms of revenue ever.

 

Data from China showed industrial profits grew at their slowest pace in more than 18 months.

 

Brent crude fell 62 cents to settle at $89.34 a barrel, while U.S. crude closed 74 cents lower at $86.61 a barrel.

 

European markets gained 0.4%-1.1%. Germany’s GfK consumer sentiment index came in at -6.7 points heading into February from a revised -6.9 points a month ago, exceeding expectations for a drop to -7.8.

 

AT HOME

 

After falling more than 2%, benchmark indices recouped more than half of the losses in noon trade to end lower by a percent. Sensex settled at 57276, down 581 points while Nifty lost 167 points to finish at 17110. Nifty mid-cap and small-cap indices fell 1% and 0.7% respectively. BSE IT and Teck indices nosedived 3.1% and 2.8% respectively, becoming the top losers among the sectoral indices while Bankex and Auto indices were the top gainers, up 1% and 0.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 6267 cr, 3009 cr and 959 cr respectively. DIIs were net buyers to the tune of Rs 2881 cr.

 

Rupee depreciated 29 paise to end at 75.07/$.

 

OUTLOOK

 

Today morning, Nikkei is up nearly 2% but Hang Seng and Shanghai are down 0.6% and 0.2% respectively. SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 16836, the low made on Tuesday, was the important immediate support to eye.

 

Nifty, after touching a low of 16866, rebounded to end at 17110.

 

16836, the low made on Tuesday, continues to be important immediate support; 34-DMA, placed around 17500, is the immediate hurdle.

 

38850 is the next upside target for Banknifty; 37012, the low made yesterday, is the immediate support.

 

L & T, Dr Reddy, Kotak Mahindra Bank and Britannia will report their quarterly earnings today.

16836 IS THE IMPORTANT IMMEDIATE SUPPORT; 17720 IMMEDIATE HURDLE

 

16836 IS THE IMPORTANT IMMEDIATE SUPPORT; 17720 IMMEDIATE HURDLE

 

WORLD MARKETS

 

On Tuesday, Dow fell 0.2% while S & P 500 and Nasdaq tumbled 1.2% and 2.3% respectively, awaiting outcome of the Fed meeting.

 

Yesterday, Dow and S & P 500 ended lower by 0.4% and 0.2% respectively while Nasdaq closed flat after the Federal Reserve indicated that it could start raising interest rates in March, the first increase in three years.

 

At a press conference following the decision, Chair Powell emphasized that the central bank was committed to stable prices and that there was “quite a bit of room” to raise rates before harming the labor market.

 

FOMC noted the central bank’s monthly bond-buying will proceed at just $30 billion in February, indicating that program could end in March. The Fed however indicated that it would begin shrinking its balance sheet after hiking rates.

 

The yield on the benchmark 10-year Treasury note jumped 8 basis points to 1.86%. Dollar index rose half a percent to 96.48. Gold slipped 1.5% to $1819 per ounce.

 

Brent as well as WTI crude futures rose 2% each to $89.96 and $87.35 per barrel respectively.

 

European markets gained 1.3%-2.2%.

 

AT HOME

 

After falling just under 2% in the initial trade, Sensex and Nifty surged nearly 2.5% from the bottom of the day to end higher by 0.6% and 0.7% respectively, snapping a 5-day losing streak. Sensex settled at 57858, up 366 points while Nifty added 128 points to finish at 17277. Nifty mid-cap and small-cap indices gained 1% and 0.9% respectively. Except 0.4% and 0.1% lower IT and Consumer Durables indices respectively, all the BSE sectoral indices ended in green, with Telecom index being the top gainer, up 2.5%, followed by 2.4% higher Utilities and Power indices.

 

FIIs net sold stocks and index futures worth Rs 7094 cr and 156 cr respectively but net bought stock futures worth Rs 532 cr. DIIs were net buyers to the tune of Rs 4535 cr.

 

Rupee depreciated 21 paise to end at 74.77/$.

 

IMF cut India's FY22 GDP growth forecast to 9% from 9.5% earlier.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-2%. SGX Nifty is trading around 17000, suggesting nearly 300 point lower start for our market.

 

In Tuesday's report we had said that 16997, was the immediate support, upon breach of which, 16850-16800 would be the next support zone.

 

Nifty, after touching a low of 16836, reversed and surged all the way to 17309 before closing at 17277. The benchmark is set to open near 17000 today.

 

16836, the low made on Tuesday, is the important immediate support to eye; 17720 is the immediate hurdle.

 

For Banknifty, 36375, the low made Tuesday, is the important immediate support to eye; 37800 continues to be immediate hurdle.

 

16800 BELOW 16997; 17780 IS IMMEDIATE HURDLE

 

16800 BELOW 16997; 17780 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

After plunging 3-5%, US indices staged a stunning rebound to end with gains of 0.3%-0.6%. Dow snapped a six-day losing streak while S & P 500 and Nasdaq gained for the first time after 4 days.

 

The volatility was on account of heightened tensions between the Ukraine and Russia and nervousness ahead to the U.S. Federal Reserve’s monetary policy meeting.

 

NATO said it was putting forces on standby in eastern Europe in response to Russia’s military build-up at Ukraine’s borders.

 

The Federal Reserve Open Market Committee will begin its two-day meeting today.  Markets will be watching for an indication of when the Fed will begin hiking rates, and the pace of those hikes.

 

US 10-year treasury yield inched up 1 bps to 1.774%. Dollar index rose a quarter of a percent to 95.86. Spot gold rose 0.4% to $1,840.16 per ounce.

 

Brent crude fell $1.62, or 1.8%, to $86.27 per barrel and WTI crude settled 2.15% lower, or $1.83, at $83.31 per barrel.

 

European markets tumbled 2.6%-4%. Euro zone IHS Markit flash composite PMI dropped to 52.4 in January from 53.3 in December, the lowest since February.

 

AT HOME

 

Benchmark indices nosedived 2.6% each, extending the losing streak to fifth consecutive day and suffering the worst cut after 26th November, 2021. Sensex settled at 57491, down 1545 points while Nifty lost 468 points to finish at 17149. Nifty mid-cap and small-cap indices collapsed 3.9% and 4.8% respectively to register worst day since 12th April 2021. All the BSE sectoral indices ended in red, with Realty and Metal indices leading the losses, down 5.9% and 5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3752 cr, 1573 cr and 1093 cr respectively. DIIs were net buyers to the tune of Rs 75 cr.

 

Rupee depreciated 14 paise to end at 74.56/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-1.9% and SGX Nifty is suggesting around 150 points lower start for our market.

 

In yesterday's report we had said that 17485, was the important immediate support, upon breach of which, 17380 and 17050, the 50% and 67% retracement levels of the entire 16410-18350 upmove, would be next downside levels to eye.

 

Nifty broke 17485 and plunged all the way to 16997 before closing at 17149. The benchmark is set to open near 17000 today.

 

16997, the low made yesterday, which also coincided with the lower band of daily bollinger, is the immediate support to eye. If this level breaks, 16850-16800 would be the next support zone; Immediate hurdle on the hourly chart has moved lower to 17780, with the stop-loss of which, trading shorts can be held on to.

 

36375, the low made yesterday, is the immediate support for Banknifty; 37800 is immediate hurdle.

 

Maruti, Cipla and Pidilite will report their quarterly earnings today.

 

TRAIL STOP-LOSS TO 17980

 

TRAIL STOP-LOSS TO 17980

 

WORLD MARKETS

 

US indices tumbled 1.3%-2.7% on Friday, extending the weekly sell-off.

 

Netflix shares tumbled 21.8%, weighing on the S&P 500 and the Nasdaq, after the streaming giant forecast weak subscriber growth. Shares of competitor Walt Disney fell 6.9%, dragging on the Dow.

 

US 10-year treasury yield fell more than 4 bps to 1.762%. Dollar index fell 0.1% to 95.63. Gold fell 0.2% to $1834 per ounce.

 

Brent futures fell 49 cents, or 0.6%, to settle at $87.89 a barrel, while WTI crude fell 41 cents, or 0.5%, to settle at $85.14.

 

European markets fell 1.2%-1.9%. Britain’s GfK Consumer Confidence Index sank to -19 in January from -15 in December, its lowest level since February 2021, as soaring inflation and the prospect of further interest rate hikes dampened the outlook. U.K. retail sales dropped by 3.7% in December from the previous month,  well below the 0.6% fall expected.

 

For the week, Nasdaq nosedived 7.6% for its worst since October 2020. Dow and S & P 500 fell 4.6% and 5.7% respectively. Dollar index rose 0.4%. Both crude benchmarks rose for a fifth week in a row, gaining around 2% this week. Gold rose 0.9% for its second weekly gain.

 

AT HOME

 

After falling a percent and half, benchmark indices recouped half of the losses in last half an hour to end lower by nearly three fourth of a percent, extending the losing streak to fourth consecutive session. Sensex settled at 59037, down 427 points while Nifty lost 140 points to finish at 17617. This was the lowest close for both the indices after 31st December. Nifty mid-cap and small-cap indices nosedived 2.4% and 2.3% respectively. Except 0.05% higher FMCG index, all the BSE sectoral indices ended in red, with Telecom and Consumer Durables indices leading the losses, down 3% and 2.9% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3148 cr, 616 cr and 1003 cr respectively. DIIs were net buyers to the tune of Rs 269 cr.

 

Rupee appreciated 8 paise to end at 74.41/$.

 

For the week, Sensex and Nifty tumbled 3.5% each, snapping 4-week winning streak and suffering the worst weekly fall in nearly 2-months.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-0.9% and SGX Nifty is suggesting more than 100 points lower start for our market.

 

In Friday's report we had said that 34-DMA, placed around 17525, was the next downside level to eye and had advised trailing stop-loss in short positions to 18100.

 

Nifty, after touching a low of 17485, rebounded to end at 17617 and is set to open near 17500 today.

 

17485, the low made on Friday, which roughly coincided with the 34-DMA, is the important immediate support to eye. If this breaks, 17380 and 17050, the 50% and 67% retracement levels of the entire 16410-18350 upmove, would be next downside levels to eye. Immediate resistance on the hourly chart has moved lower to 17980, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 37224, the low made on Friday, which coincided with 20-DMA, is the immediate support to eye. If that breaks, 34-DMA, placed around 36800, would be the next important support. 38150 is the immediate hurdle on the hourly chart.

 

Axis Bank will report its quarterly earnings today.

NIFTY ACHIEVES 17650 TARGET; 34-DMA NEXT SUPPORT TO EYE

 

NIFTY ACHIEVES 17650 TARGET; 34-DMA NEXT SUPPORT TO EYE

 

WORLD MARKETS

 

After rising more than a percent in the initial trade, US indices nosedived to end with cuts of 0.9%-1.3%

 

Jobless claims for the week ended Jan. 15 totaled 286,000, well above the estimate of 225,000 and hitting their highest level since October.

 

US 10-year treasury yield fell 6 bps to 1.808%. Gold was little changed at $1839 per ounce.

 

Brent crude futures settled 6 cents lower at $88.38 a barrel and WTI crude futures for February delivery settled 6 cents lower at $86.90 per barrel.

 

In Europe, FTSE eased 0.1% while DAX and CAC were p 0.6% and 0.3% respectively.

 

AT HOME

 

After falling nearly a percent and half, benchmark indices recouped a third of the losses in last 45 minutes to end lower by a percent. Sensex settled at 59464, down 634 points while Nifty lost 181 points to finish at 17757. This was the third consecutive negative day for both of them. Nifty mid-cap and small-cap indices fell 0.2% and 0.05% respectively. BSE IT and Teck indices tumbled 1.7% and 1.4% respectively, becoming the top losers among the sectoral indices while Power and Utilities indices were the top gainers, up 1.3% and 1.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 4680 cr, 2103 cr and 2464 cr respectively. DIIs were net buyers to the tune of Rs 769 cr.

 

Rupee depreciated 7 paise to end at 74.50/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-1.8% and SGX Nifty is suggesting around 150 points lower start for our market.

 

In yesterday's report we had said that 20-DMA, placed around 17750, was the downside level to eye and had advised holding on to short positions with the stop-loss of 18200. Also, we had mentioned in our Wednesday's report that 17700-17650 would be the next support zone if 18050 is violated.

 

Nifty yesterday plunged all the way to 17648 before closing at 17757, achieving all the downside targets mentioned above and vindicating our view. The benchmark is set to open below 17650 today.

 

34-DMA, placed around 17525, is the next downside level to eye; Immediate hurdle on the hourly chart has moved lower to 18100, with the stop-loss of which, trading shorts can be held on to.

 

37430 and 37060 are supports for Banknifty; 38330 is immediate hurdle

 

Reliance Industries, HDFC Life, SBI LIFE AND JSW Steel will report their quarterly earnings today.

 

STAY SHORT WITH THE STOP-LOSS OF 18200

 

STAY SHORT WITH THE STOP-LOSS OF 18200

 

WORLD MARKETS

 

Dow and S & P 500 fell 1% each while Nasdaq tumbled 1.2% to enter the correction territory by completing 10% correction from the record high hit in November.

 

US 10-year treasury yield, after hitting a high of 1.902%, eased to end 1 bps lower at 1.866%. Dollar index eased 0.1% to 95.61. Gold surged 1.5% to $1840 per ounce.

 

Oil prices rose for a fourth day to a seven-year high. An outage on a pipeline from Iraq to Turkey increased concerns about an already tight supply outlook amid worrisome geopolitical troubles in Russia and the United Arab Emirates. Brent crude futures settled 93 cents, or 1.06%, higher at $88.44 per barrel and WTI futures settled $1.53, or 1.8%, higher at $86.96 per barrel

 

In Europe, FTSE, DAX and CAC gained 0.2%-0.6%. UK inflation hit an annual 5.4%, its highest since March 1992 and up from 5.1% in November.

 

AT HOME

 

Sensex and Nifty tumbled 1.1% and 1% respectively, extending the losing streak to second straight day. Sensex settled at 60098, down 656 points while Nifty lost 174 points to finish at 17938. Nifty mid-cap index was marginally lower while Small-cap index ended flat. BSE IT and Teck indices nosedived 2% and 1.8% respectively, becoming top losers among the sectoral indices while Utilities and Power indices were the top gainers, up 1% each.

 

FIIs net sold stocks and index futures worth Rs 2705 cr and 1262 cr respectively but net bought stock futures worth Rs 941 cr. DIIs were net sellers to the tune of Rs 195 cr.

 

Rupee appreciated 14 paise to end at 74.42/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are modestly higher while Hang Seng is up more than a percent. SGX nifty is however suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 18050 continues to be immediate support on the hourly chart, upon breach of which, 17700-17650 would be the next support zone.

 

Nifty broke 18050 and plunged all the way to 17885 before closing at 17938.

 

20-DMA, placed around 17750, is the downside level to eye; Immediate hurdle on the hourly chart is placed around 18200, with the stop-loss of which, trading shorts can be held on to.

 

37430 and 37060 are the supports to eye for Banknifty; 38330, 38855 are hurdles.

 

Asian Paints and HUL will report their quarterly earnings today.

 

NIFTY RETREATS AFTER ACHIEVING 18342 TARGET

 

NIFTY RETREATS AFTER ACHIEVING 18342 TARGET

 

WORLD MARKETS

 

US indices nosedived 1.5%-2.6%, with Nasdaq closing at its lowest level in three months, as bond yields surged.

 

US 10-year treasury yield rose 6 bps to 1.875%, hitting 2-year high. The 2-year rate topped 1% for the first time in two years. Dollar index climbed half a percent to 95.72. Spot gold slipped 0.3% to $1,814.34 per ounce.

 

Goldman Sachs' plunged 7% after earnings missed expectations.

 

Oil hit seven-year high on the back of fresh tensions in Middle East. Brent crude futures advanced 1.19% to $87.51 per barrel, while U.S. West Texas Intermediate futures settled 2.43% higher at $85.43 per barrel.

 

European markets fell 0.6%-1%. ZEW economic sentiment survey for Germany came in at 51.7 points for January versus 29.9 in December and much above the projected reading of 32.0.

 

AT HOME

 

After a positive start, Sensex and Nifty nosedived in late noon trade to end lower by 0.9% and 1.1% respectively. Sensex settled at 60754, down 554 points while Nifty lost 195 points to finish at 18113. Nifty mid-cap and small-cap indices tumbled 2.1% and 2.4% respectively. This was the biggest percentage cut for Nifty, Nifty mid-cap and Nifty small-cap indices after 20^th December, 2021. Except 0.2% higher Bankex, all the BSE sectoral indices ended in red, with Basic Materials index being the top loser, down 2.8%, followed by 2.6% lower Realty and Telecom indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1255 cr, 205 cr and 567 cr respectively. DIIs were net sellers to the tune of Rs 220 cr.

 

Rupee depreciated 33 paise to end at 74.57/$.

 

OUTLOOK

 

Today morning, Nikkei is down 1.8%, Shanghai is marginally in the red while Hang Seng is up 0.2%. SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 18342, the top made on 27th October, continued to be next upside level to eye, upon crossover of which, 18604, the all-time high made on 19th October, would be the next big target. We had also said that 18050 continued to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a high of 18350, plunged to 18085 before closing at 18113.

 

18050 continues to be immediate support on the hourly chart, upon breach of which, 17700-17650 would be the next support zone; 18350, the top made yesterday, is the immediate hurdle.

 

For Banknifty, 38855, the top made yesterday, is the immediate hurdle, upon crossover of which, 39250, the 67% retracement level of the entire 41830-34440 fall, would be the next upside target; 38000 is the immediate support on the hourly chart, upon breach of which, 37430 and 37060 would be the next downside levels to eye.