17006 CONTINUES TO BE IMMEDIATE SUPPORT

 

17006 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 1.2%-1.3% as oil prices continued to climb.

 

Oil prices jumped as crude oil exports from Kazakhstan’s CPC terminal on Russia’s Black Sea coast stopped fully after damage caused by a major storm and continued bad weather. Brent futures jumped 5.3% to $121.60 and WTI crude futures settled $5.66, or 5.2%, higher at $114.93 per barrel.

 

US 10-year treasury yield, after hitting a high of 2.417%, reversed to end 9 bps lower at 2.295%. Dollar index inched up 0.2% to 98.61. Spot gold rose 0.8% to $1,937.52 per ounce.

 

Main European markets fell 0.2%-1.3%. U.K. inflation came in at an annual 6.2% in February, its highest since March 1992. UK's Finance Minister Rishi Sunak announced an immediate cut to fuel taxes and a longer-term tax reduction for workers in a bid to mitigate the country’s historic hit to living standards.

 

AT HOME

 

After opening higher by around three-fourth of a percent, benchmark indices slipped more than a percent from the top to end lower by nearly half a percent. Sensex settled at 57684, down 304 points while Nifty lost 70 points to finish at 17245. Nifty mid-cap index rose 0.6% while small-cap index fell 0.2%. BSE Metal and Utilities indices climbed 1.5% and 1.4% respectively, becoming top gainers among the sectoral indices while Bankex was the top loser, down 0.8%, followed by 0.7% lower Finance and Auto indices.

 

FIIs net bought stocks worth Rs 481 cr but net sold index futures and stock futures worth Rs 1146 cr and 580 cr respectively. DIIs were net sellers to the tune of Rs 294 cr.

 

Rupee depreciated 12 paise to end at 76.30/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-1.1% and SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 17490 was the next upside levels to eye and had advised trailing the stop-loss in long positions to 17006.

 

Nifty, after making a top of 17442, slipped to end at 17223.

 

17006, the bottom made on Tuesday, continues to be immediate support; 17490 continues to be next upside level to eye. Meanwhile, trading longs can be held on to with the stop-loss of 17006.

 

For Banknifty, 36827, the top made yesterday, is the immediate hurdle, upon crossover of which, 34-week moving average, placed around 37100, would be the next resistance; 35384, the low made Tuesday, is the immediate support.