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.