16809 BELOW 16955; 17490 CONTINUES TO BE IMMEDIATE HURDLE

 

16809 BELOW 16955; 17490 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

Markets in the United States were closed yesterday for the Presidents Day holiday.

 

European markets fell 0.4%-2.1%, monitoring the Russia-Ukraine situation.

 

White House said Sunday that Biden has accepted “in principle” to meet with Putin in yet another effort to deescalate the Russia-Ukraine situation via diplomacy. However, another news report suggested that Moscow has compiled lists of Ukrainians to target after an invasion.

 

Markit’s flash euro area composite PMI came in at a five-month high of 55.8 in February, significantly outpaced the 52.7 forecast and the 52.3 seen in January. The U.K.’s composite PMI came in at an eight-month high of 60.2 in February, up from 54.2 in January and well above forecasts.

 

Dollar index was little changed at 96.13. Gold rose 0.3% to $1903.4 per ounce.

 

Brent crude surged 3.6% to $97 and WTI crude rose 2.3% to $93.92 per ounce.

 

US futures are down 1.2%-2.1% as Russian President Putin said he would recognize the independence of two breakaway regions in Ukraine, potentially undercutting peace talks with US President Biden. That announcement was followed by news that Biden was set to order sanctions on separatist regions of Ukraine, with the European Union vowing to take additional measures. Putin later ordered forces into the two breakaway regions.

 

AT HOME

 

Sensex and Nifty fell 0.3% and 0.4% respectively, extending the losing streak to fourth straight day. Sensex settled at 57683, down 149 points while Nifty lost 69 points to finish at 17206. Nifty mid-cap and small-cap indices tumbled 1.2% and 2.7% respectively, with the later closing at the lowest level after 27th August, 2021. Except 0.2% higher Bankex, all the BSE sectoral indices ended in red, with Oil & Gas being the top loser, down 2.2%, followed by 1.9% each lower Utilities and Metal indices.

 

FIIs net sold stocks and index futures worth Rs 2262 cr and 217 cr respectively but net bought stock futures worth Rs 1311 cr. DIIs were net buyers to the tune of Rs 2393 cr.

 

Rupee appreciated 16 paise to end at 74.50/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.8%-2.1% and SGX Nifty is suggesting around 200 points lower start for our market.

 

In yesterday's report we had said that 17150, the 50% retracement level of the recent 16809-17490 upmove, was the immediate support, upon breach of which, 17070 and 16955, the 61.8% and 78.6% retracement levels of this upmove, would be next downside levels to eye.

 

Nifty, after touching a low of 17070, rebounded to end at 17206 and is set to open near 17000 today.

 

16955, the 78.6% retracement level of the recent 16809-17490 upmove, is the next support to eye, upon breach of which, 16809, the bottom made on 14th February, would be the next downside level to eye; 17490, the top made last week, continues to be immediate hurdle.

 

For Banknifty, 36651, the low made last week, is the immediate support, upon breach of which, 36375, the bottom made on 24th January, would be the next downside level to eye; 38461, the top made last week, is the immediate hurdle.