15600 BELOW 15900; 16550 IS IMMEIDATE HURDLE

 

15600 BELOW 15900; 16550 IS IMMEIDATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.5%-1.7% on Friday with Nasdaq leading the losses despite a stronger-than-expected jobs report as worrisome developments in Ukraine weighed on sentiment.

 

Reports indicated that Russian forces had seized Europe's largest nuclear power plant in Zaporizhzhia, Ukraine. The U.S. embassy in Kyiv called the attack a war crime.

 

US economy added 678,000 jobs last month, above the 440,000 expected. The unemployment rate ticked down to 3.8%. Wage growth however was slower-than-expected.

 

US 10-year treasury yield dropped more than 10 bps to around 1.73%. Dollar index rose 0.8% to 98.51 to hit highest level in more than 9 months. Spot gold jumped 1% to $1,954.53 per ounce.

 

Brent futures surged $7.65, or 6.9%, to settle at $118.11 a barrel, while WTI crude rose $8.01, or 7.4%, to settle at $115.68. That was the highest close for Brent since February 2013 and for WTI since September 2008.

 

European markets nosedived 3.5%-6.2% with Italy leadin the losses.

 

For the week, the Dow and S&P 500 slid 1.3% while Nasdaq Composite lost  2.8%. WTI and Brent crude surged 25% and 20% respectively. Gold gained 4.3%.

 

AT HOME

 

Benchmark indices plunged nearly a percent and half, extending the losing streak to third straight session and closing at the lowest level after 6th August 2021. Sensex lost 768 points to settle at 54333 while Nifty finished at 16245, down 252 points. Nifty mid-cap and small-cap indices slipped 2.1% and 1.8% respectively, with the later snapping 4-session winning streak. All the BSE sectoral indices ended in red, with Auto and Metal indices being the top losers, down 3.4% each.

 

Rupee depreciated 25 paise to end at 76.16/$, its lowest since December 15.

 

India's February Services PMI improved to 51.8 from 51.5 month-on-month while composite PMI rose to 53.5 from 53.

 

For the week, Sensex and Nifty fell 2.7% and 2.5% respectively, extending the losing streak to fourth consecutive week and closing at 7-month low.

 

OUTLOOK

 

U.S. Secretary of State Antony Blinken yesterday said Washington and its allies are considering banning Russian oil and natural gas imports. Reacting to this, oil prices have surged today, with  Brent crude futures up 8.5% to $128.15 per barrel and U.S. crude futures up 7.6% to $124.44 per barrel.

 

Today morning, Asian markets are trading with cuts of 0.5%-4.5% with Hang Seng leading the losses. SGX Nifty is suggesting nearly 400 points lower start for our market.

 

In Friday's report we had said that 16203, the bottom made last week, was the downside level to eye, upon breach of which 15900 and 15600 would be next supports.

 

Nifty, after touching a low of 16133, rebounded to end at 16245. The benchmark is set to open below 16000, somewhere around 15850 today.

 

15600, as mentioned on Friday, would be the next downside target below 15900. If 15600 also does not hold, next meaningful support will come only around 15150, where 20-month moving average is placed; 16550 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 20-month moving average, placed around 32950, is the downside level to eye; 35600 is the immediate hurdle on the hourly chart.