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.