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.