15150 BELOW 15600; 16500 IS IMMEDIATE HURDLE

 

15150 BELOW 15600; 16500 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices nosedived 2.4%-3.6% as surging commodity prices on the back of Ukraine-Russia conflict stoked 'stagflation' fears.

 

US 10-year treasury yield rose 5 bps to 1.777%.  U.S. dollar index hit a 22-month high by rising 0.6% to 99.22. Spot gold rose 1.5% to $1,998 per ounce.

 

Oil prices, after hitting multi-year highs, retreated on news that Germany is reluctant to ban Russia energy imports. WTI crude futures, after spiking to $130.50, closed 3.2% higher at $119.40, the highest settle since September 2008. Brent hit a high of $139.13 before closing 4.3% higher at $123.21 per barrel.

 

European markets fell 0.4%-2%.

 

AT HOME

 

Sensex and Nifty tumbled 2.7% and 2.4% respectively, extending the losing streak to fourth straight day and closing at the lowest level after 30 July 2021, marking a 7-month low. Nifty mid-cap and small-cap indices fell 2.4% and 2% respectively. BSE Bankex and Finance indices nosedived 4.6% and 4.4% respectively, becoming top losers among the sectoral indices, while Metal and Telecom indices were the top gainers, up 2.7% and 1.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 7482 cr, 1762 cr and 720 cr respectively. DIIs were net buyers to the tune of Rs 5331 cr.

 

Rupee hit a record low against the dollar and ended 80 paise lower at 76.96/$.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.7% while Nikkei and Shanghai are down 0.3% and 0.6% respectively. SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 15600 would be the next downside target below 15900.

 

Nifty, after touching a low of 15711, closed at 15863 and is set to open near 15800 today.

 

15600 continues to be next downside level to eye, upon breach of which, next meaningful support will come only around 15150, where 20-month moving average is placed; 16500 is the immediate hurdle on the hourly chart.

 

32000, the 38.2% retracement level of the entire 16116-41830 upmove, is the next support for Banknifty; 34800 is immediate hurdle.