16900 CONTINUES TO BE IMMEDIATE HURDLE; 16356, 16203 ARE THE SUPPORTS

 

16900 CONTINUES TO BE IMMEDIATE HURDLE; 16356, 16203 ARE THE SUPPORTS

 

WORLD MARKETS

 

US indices climbed 1.6%-1.8% after digesting Fed Chari Powell's comments and strong private payroll data.

 

Fed Chairman Powell testified before Congress, saying that rate hikes are likely to begin this month despite the “highly uncertain” impact of the war in Ukraine. He said that he is “inclined” toward a 25-basis point hike and that the Fed would work on, but not finalize, a plan to reduce its balance sheet.

 

Data from ADP showed private companies in the U.S. added 475,000 jobs in February, higher than the expected 400,000. January numbers was also revised upward.

 

US 10-year treasury yield jumped 18 bps to 1.89%. Spot gold fell 1.1% to $1,921.56 per ounce.

 

OPEC and its allies decided to hold production steady despite the dramatic rise in oil prices seen in recent days. WTI crude jumped more than 8% to $112.51 per barrel, the highest level since May 2011. Brent crude rose more than 8% to $113.94 per barrel, the highest level since June 2014.

 

European markets gained 0.7%-1.6%

 

AT HOME

 

Senex and Nifty recouped some of the intraday losses in late trade to end lower by 1.4% and 1.1% respectiely. Sensex settled at 55468, down 778 points while Nifty lost 187 points to finish at 16605. Broader indices outperformed with a flat mid-cap index and half a percent higher small-cap index.

 

BSE Oil & Gas index soared 4.6%, becoming top gainer among the sectoral indices, followed by 1.7% higher Energy index. Auto index and Bankex were the top losers, down 2.9% and 2.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 4339 cr, 3245 cr and 1254 cr respectively. DIIs were net buyers to the tune of Rs 3062 cr.

 

Rupee depreciated 36 paise to end at 75.70/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-0.7% and SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 16356 followed by 16203, the bottoms made on Monday and last week respectively, were the downside levels to eye while 16900 continued to be immediate hurdle.

 

Nifty, after touching a low of 16478, rebounded to end at 16605.

 

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; 16356 followed by 16203, the bottoms made on Monday and last week respectively, continue to be the downside levels to eye.

 

34897, the low made yesterday, is the immediate support for Banknifty below which, 34250-34000 would be the next support zone; 36700 is immediate hurdle.