16356, 16203 ARE SUPPORTS; 16900 IMMEDIATE HURDLE

 

16356, 16203 ARE SUPPORTS; 16900 IMMEDIATE HURDLE

 

WORLD MARKETS

 

On Monday, Dow and S & P 500 fell 0.5% and 0.2% respectively but Nasdaq gained 0.4% as markets continued to assess Russia-Ukraine conflict. Ukrainian and Russian officials wrapped up a critical round of talks Monday talks aimed at stopping the fighting yielded only an agreement to keep talking.

 

For February, US markets fell 3.1%-3.5%.

 

China’s official manufacturing PMI for February came in at 50.2, beating expectations of 49.9.

 

Yesterday, Oil and Gold prices soared and equities tumbled as Ukraine-Russia conflict intensified. US indices tumbled 1.6%-1.8%.

 

Reports citing satellite imagery said that a long convoy, some 40 miles (65km) long, of Russian military vehicles is heading towards Ukraine’s capital Kyiv.

 

US 10-year treasury yield fell 11 bps to 1.726%. Dollar index jumped 0.7% 97.39. Gold jumped 1.8% to $1,941.51 per ounce.

 

WTI crude jumped to $103.41, for a gain of 8% and Brent ended the day at $104.97 per barrel, for a gain of 7.2%.

 

European markets plunged 1.7%-4.1%.

 

AT HOME

 

After plunging 1.8% in the initial trade, Sensex and Nifty saw a sustained northward move through rest of the session and ended with gains of 0.7% and 0.8% respectively. Sensex settled at 56247, up 388 points while Nifty added 135 points to finish at 16793. Nifty mid-cap and small-cap indices gained 1% and 0.6% respectively. BSE Metal index soared 5.5%, becoming the top gainer among sectoral indices, followed by 2.9% higher Energy index. Auto index and Bankex were the top losers, down 0.6% each.

 

FIIs net sold stocks and index futures worth Rs 3948 cr and 733 cr respectively but net bought stock futures worth Rs 3351 cr. DIIs were net buyers to the tune of Rs 4143 cr.

 

Rupee depreciated 5 paise to end at 75.34/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-1.8% and SGX Nifty is tradign around 16560, suggesting more than 200 points lower start when compared to Monday's close of Nifty future, 16794.

 

In Monday's report we had said that 16900, around which 200-DMA is also placed, was the immediate hurdle on the hourly chart while 16478, the low made Friday was the immediate support, upon breach of which, 16203, the low made on Thursday, would be the next downside level to eye.

 

Nifty, after touching a low of 16356, rebounded to end at 16793, but is set to open below 16600 today.

 

16356 followed by 16203, the bottoms made on Monday and last week respectively, are the downside levels to eye; 16900 continues to be immediate hurdle, upon crossover of which, 17027, the upper end of the gap created by last Thursday’s gap-down opening, would be the next upside level to eye.

 

34991, the low made last week, is the immediate support for Banknifty; 37000-37300 is the resistance zone.