17250-17200 IS THE IMMEIDATE SUPPORT ZONE; 17490 IMMEIDATE HURDLE

 

17250-17200 IS THE IMMEIDATE SUPPORT ZONE; 17490 IMMEIDATE HURDLE

 

WORLD MARKETS

 

US indices plunged 1.8%-2.9%, with the Dow suffering the worst fall of 2022, as tension on Ukraine-Russia front escalated.

 

Ukraine accused pro-Russian separatists of attacking a village near the border. Meanwhile, U.S. Ambassador to the United Nations told reporters that Russia “is moving toward an imminent invasion,” with U.S. Secretary of State Antony Blinken set to address the United Nations Security Council later in the day.

 

US January’s housing starts and the weekly jobless claims data came in worse than expected, with initial claims rising to 248,000 as against expectation of a slight decline to 218,000. January’s building permits data did beat expectations to the upside, however.

 

US 10-year treasury yield fell 8 bps to 1.975%. Dollar index was flat at 95.80. Gold surged 1.8% to $1898 per ounce, its highest in eight months.

 

Brent crude declined 2% to $92.87 per barrel and WTI crude settled 1.4% lower at $91.76 per barrel as talks to resurrect a nuclear deal with Iran entered their final stages.

 

European markets fell 0.3%-1.1%.

 

AT HOME

 

Sensex and Nifty ended lower by 0.2% and 0.1% respectively after a choppy session. Sensex settled at 57892, down 104 points while Nifty lost 17 points to finish at 17304. Nifty mid-cap and small-cap indices fell 0.3% and 1% respectively. BSE Power and Utilities indices climbed 2% and 1.6% respectively, becoming top gainers among the sectoral indices, while Bankex and Healthcare indices were the top losers, down 1.2% and 0.7% respectively.

 

FIIs net sold stocks worth Rs 1242 cr but net bought index futures and stock futures worth Rs 890 cr and 900 cr respectively. DIIs were net buyers to the tune of Rs 901 cr.

 

Rupee depreciated 4 paise to end at 75.11/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of upto 0.6% and SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 17490, the top made Wednesday, which roughly coincided with a downward sloping trendline adjoining recent tops, was the immediate hurdle while 17257, the low made Wednesday, was the immediate support, upon breach of which, 16809, the low made Monday, would be the crucial support.

 

Nifty, after touching a high of 17443, slipped to touch a low of 17235 and closed at 17304.

 

17250-17200 is the immediate support zone on the hourly chart, upon breach of which, 16809, the low made Monday, would be the next downside level to eye; 17490, the top made Wednesday, continues to be immediate hurdle.

 

For Banknifty, 38461, the top made Wednesday, is the immediate hurdle, above which, 39000-39200 would be the next target zone; 36651, the bottom made Tuesday, is the important support.