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.