17390 IS THE IMMEDIATE SUPPORT

 

17390 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices ended with cuts of 1.5%-2.1% after a volatile session as key inflation data showed hotter-than-expected price pressures.

 

The consumer price index for January rose 7.5%, its biggest year-on-year gain since February 1982. The expected figure was 7.2%. Month-on-month rise stood at 0.6%. Separately, initial jobless claims came in at 223,000 for the week ended Feb. 5, lower than the expected 230,000.

 

US 10-year treasury yield jumped 12 basis points to about 2.05%, the first time that the benchmark rate reached 2% since August 2019. 2-year yield surged 26 bps to top 1.6% for its biggest single day move since 2009. Dollar index, after touching a high of 96.002, eased to end 0.25% higher at 95.793. Gold, after hitting a top of $1842, slipped to end 0.3% lower at $1827 per ounce.

 

Brent crude futures settled 14 cents, or 0.15%, lower at $91.41 per barrel while WTI crude settled 22 cents, or 0.25%, higher at $89.88 per barrel.

 

In Europe, FTSE and DAX gained 0.4% and 0.05% respectively while CAC fell 0.4%.

 

AT HOME

 

Benchmark indices, buoyed by dovish RBI policy, climbed eight tenth of a percent each, extending the winning streak to third straight day. Sensex settled at 58926, up 460 points while Nifty added 142 points to finish at 17605. Nifty mid-cap and small-cap indices gained 0.3% and 0.5% respectively. Except 0.1% lower Capital Goods index, all the BSE sectoral indices ended higher, with Power and Metal indices leading the tally, up 1.4% and 1.3% respectively.

 

FIIs net sold stocks worth Rs 1733 cr but net bought index futures and stock futures worth Rs 2276 cr and 540 cr respectively. DIIs were net buyers to the tune of Rs 2727 cr.

 

Rupee depreciated 13 paise to end at 74.94/$.

 

Monetary Policy Committee decided to leave repo as well as reverse repo rate unchanged and also maintained "Accommodative" stance. RBI projected FY23 CPI to be 4.5% and GDP growth to be 7.8%.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 0.4% and 0.1% respectively while Hang Seng is down 0.1%. SGX Nifty is suggesting around 170 points lower start for our market.

 

In yesterday's report we had said that 17515 continued to be immediate hurdle, upon sustained crossover of which, 17794, the top made last week, would be the next upside level to eye.

 

Nifty crossed 17515 and surged all the way to 17639 before closing at 17605. The benchmark however is set to open near 17450 today.

 

Immediate support on the hourly chart is placed around 17390, upon breach of which, 17100, around which a trendline adjoining recent bottoms is placed, would be the next downside level to eye.

 

17639, the top made yesterday, which roughly coincided with 20-DMA, is the immediate hurdle to eye, upon crossover of which, 17794, the top made last week, would be the next upside target.

 

Meanwhile trading longs can be held on to with the stop-loss of 17390.

 

39425, the top made last week, is the next upside target for Banknifty; 38400 is immediate support.

 

Divi's Lab and ONGC will report their quarterly numbers today.