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.