15900 BELOW 16203; 16800-16850 IS THE RESISTANCE ZONE

 

15900 BELOW 16203; 16800-16850 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

After opening with deep cuts of 2.6%-3.5%, US indices staged a stunning rebound to end with gains of 0.3%-3.3%, with Nasdaq leading the gains

 

US President Biden rolled out a new wave of sanctions against Russia in a broad effort to isolate Moscow from the global economy. The White House has also authorized additional troops to be stationed in Germany. The European Union also agreed to more sanctions on Russia.

 

US initial jobless claims filed last week dipped to 232,000, slightly better than expected.

 

US 10-year treasury yield, after hitting a low of 1.847%, rebounded to end 1 bps lower at 1.967%. Dollar index, after hitting a top of 97.73, ended 0.9% higher at 97.05. Gold, after hitting a high of $1974, slipped to end at $1903, a cut of 0.25%.

 

Brent crude, after hitting a top of $105.74, eased to end 2% higher at $99 per barrel and WTI, after hitting a high of $100.50, ended at $92.98, up 0.8%. The reversal came after US President Biden said currently there are no plans to target Russia’s energy complex with sanctions.

 

European markets plunged 2.9%-4.1%.

 

AT HOME

 

World equities plunged on the news that Russia has launched an attack on Ukraine. Sensex and Nifty nosedived 4.7% and 4.8% respectively, extending the losing streak to seventh straight day, suffering the worst fall after 4th May 2020 and closing at the lowest level after 11th August and 6th August respectively. Sensex settled at 54529, down 2702 points while Nifty lost 815 points to finish at 16247. Nifty mid-cap and small-cap indices collapsed 5.7% and 6.2% respectively to close at the lowest level after 24th June and 02nd June 2021 respectively. All the BSE sectoral indices ended in red, with Realty and Auto indices being the top losers, down 7.3% and 6% respectively.

 

FIIs net sold stocks and index futures worth Rs 6448 cr and 3452 cr respectively but net bought stock futures worth Rs 3553 cr. DIIs were net buyers to the tune of Rs 7668 cr.

 

Rupee plunged 109 paise to end at 75.65/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 1.4% and 1% respectively while Hang Seng is up 0.2%. SGX Nifty is suggesting around 200 points higher start for our market.

 

In yesterday's report we had said that 16809, the bottom made last week, was the immediate support, upon breach of which, 16410, the low made in December, would be the next downside level to eye.

 

Nifty opened below 16809 and plunged all the way to 16203 before closing at 16247. The benchmark is set to open above 16400 today.

 

16800-16850, the erstwhile support zone, would now act as resistance zone; 16203, the low made yesterday, is the immediate support, upon breach of which, 15900 would be the next downside level to eye.

 

36700-36800 is the resistance zone for Banknifty; 34991, the low made yesterday, is the immediate support, upon breach of which, 34018, the low made in December 2021, would be the next downside level to eye.