17610 ABOVE 17440; 16810 IS THE SUPPORT

 

17610 ABOVE 17440; 16810 IS THE SUPPORT

 

WORLD MARKETS

 

US indices surged 1.2%-2.5% to snap a 3-day losing streak amid signs of tensions easing between Russia and Ukraine.

 

Russian Defense Ministry spokesman confirmed that military units from the southern and western districts of Russia had begun returning to their bases. However, NATO chief Jens Stoltenberg said the military alliance had not seen “any signs of de-escalation on the ground from the Russian side.”

 

US wholesale prices jumped 1% in January, bringing the y-o-y rise to 9.7% on an unadjusted basis. Core PPI, which excludes food, energy and trade services, increased 0.9% for the month, well ahead of the 0.4% estimate.

 

US 10-year treasury yield rose 5 bps to 2.049%. Dollar index fell 0.3% to 95.98. Spot gold fell 1% to $1,853 per ounce.

 

Brent crude dipped 3.3% to settle at $93.28 and WTI crude settled 3.6% lower at $92.07 per barrel.

 

European markets gained 1%-2%. Initial flash estimates showed euro zone GDP grew 0.3% in the fourth quarter for a 4.6% year-on-year increase.

 

AT HOME

 

Benchmark indices soared 3% on reports of partial pullback of Russian troops, recouping all the losses suffered in yesterday's trade. Sensex settled at 58142, up 1736 points while Nifty added 510 points to finish at 17352. This was the biggest percentage gain for both the indices after 1st February 2021. Nifty mid-cap and small-cap indices gained 2.9% and 2.5% respectively.  All the BSE sectoral indices ended in green, with Auto index and Bankex leading the tally, up 3.9% and 3.5% respectively. 

 

FIIs net sold stocks worth Rs 2299 cr but net bought index futures and stock futures worth Rs 1749 cr and 2281 cr respectively. DIIs were net buyers to the tune of Rs 4412 cr.

 

Rupee appreciated 27 paise to end at 75.33/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.7%-1.9% and SGX Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 16809, the low made Monday, which also coincided with the 200-DMA, was the immediate support while 17100-17300, the gap created by Monday's gap-down opening, would act as the resistance zone.

 

Nifty, after touching a low of 16839, reversed and surged all the way to 17375 before closing at 17352.

 

20-DMA, placed around 17440, is the next upside level to eye, upon crossover of which, 17610, where 34-DMA is placed, would be the next target;16810, the bottom made Monday, which coincided with 200-DMA, is the important support.

 

38396, the upper end of the gap created by Monday's gap-down opening, is the next upside level to eye for Banknifty, above which, 39000-39200 would be the next target zone; 36650, the low made yesterday, is the support.