STAY SHORT WITH THE STOP-LOSS OF 18200

 

STAY SHORT WITH THE STOP-LOSS OF 18200

 

WORLD MARKETS

 

Dow and S & P 500 fell 1% each while Nasdaq tumbled 1.2% to enter the correction territory by completing 10% correction from the record high hit in November.

 

US 10-year treasury yield, after hitting a high of 1.902%, eased to end 1 bps lower at 1.866%. Dollar index eased 0.1% to 95.61. Gold surged 1.5% to $1840 per ounce.

 

Oil prices rose for a fourth day to a seven-year high. An outage on a pipeline from Iraq to Turkey increased concerns about an already tight supply outlook amid worrisome geopolitical troubles in Russia and the United Arab Emirates. Brent crude futures settled 93 cents, or 1.06%, higher at $88.44 per barrel and WTI futures settled $1.53, or 1.8%, higher at $86.96 per barrel

 

In Europe, FTSE, DAX and CAC gained 0.2%-0.6%. UK inflation hit an annual 5.4%, its highest since March 1992 and up from 5.1% in November.

 

AT HOME

 

Sensex and Nifty tumbled 1.1% and 1% respectively, extending the losing streak to second straight day. Sensex settled at 60098, down 656 points while Nifty lost 174 points to finish at 17938. Nifty mid-cap index was marginally lower while Small-cap index ended flat. BSE IT and Teck indices nosedived 2% and 1.8% respectively, becoming top losers among the sectoral indices while Utilities and Power indices were the top gainers, up 1% each.

 

FIIs net sold stocks and index futures worth Rs 2705 cr and 1262 cr respectively but net bought stock futures worth Rs 941 cr. DIIs were net sellers to the tune of Rs 195 cr.

 

Rupee appreciated 14 paise to end at 74.42/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are modestly higher while Hang Seng is up more than a percent. SGX nifty is however suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 18050 continues to be immediate support on the hourly chart, upon breach of which, 17700-17650 would be the next support zone.

 

Nifty broke 18050 and plunged all the way to 17885 before closing at 17938.

 

20-DMA, placed around 17750, is the downside level to eye; Immediate hurdle on the hourly chart is placed around 18200, with the stop-loss of which, trading shorts can be held on to.

 

37430 and 37060 are the supports to eye for Banknifty; 38330, 38855 are hurdles.

 

Asian Paints and HUL will report their quarterly earnings today.