17006 CONTINUES TO BE IMMEDIATE SUPPORT

 

17006 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices gained 1%-1.9%, recouping losses suffered in the previous session.

 

Initial jobless claims last week totaled 187,000, the lowest level since 1969 and a measure of business activity for March climbed to an eight-month high. Durable goods orders however unexpectedly fell in February as shipments slowed.

 

President Joe Biden said at a NATO summit in Brussels that the U.S. would respond if Russia used chemical weapons in Ukraine.

 

US 10-year treasury yield rose 8 bps to 2.375%. Dollar index inched up 0.2% to 98.77. Spot gold climbed 1% to $1,963.21 per ounce

 

Brent crude fell by $1.99, or 1.6% to $119.61 a barrel and WTI was down $2.10, or 1.8%, at $112.82 a barrel.

 

In Europe, FTSE inched up 0.1% while DAX and CAC fell 0.1% and 0.4% respectively. Euro zone and U.K. business growth came in stronger than expected in March, according to new PMI readings.

 

AT HOME

 

Benchmark indices ended modestly lower after a rangebound but choppy session, extending the losing streak to second consecutive day. Sensex settled at 57595, down 89 points while Nifty lost 23 points to finish at 17222. Nifty mid-cap and small-cap indices however gained 0.6% and 0.4% respectively. BSE Metal and Energy indices climbed 1.6% and 1.2% respectively, becoming top gainers among the sectoral indices while Bankex and Consumer Durables indices tumbled 1.7% and 1.6% respectively, becoming top losers.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1741 cr, 859 cr and 1191 cr respectively. DIIs were net buyers to the tune of Rs 2091 cr.

 

Rupee depreciated 6 paise to end at 76.36/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are marginally in the green while Hang Seng is down 0.1%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 17006, the bottom made on Tuesday, continued to be immediate support while 17490 continues to be next upside level to eye.

 

Nifty, after touching a low of 17091 at the open, rebounded to end at 17222.

 

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

 

35384 continues to be immediate support for Banknifty, upon breach of which, 34700 would be the next downside level to eye; 36828, the top made Wednesday, is the immediate hurdle.