STAY LONG WITH THE STOP-LOSS OF 16860

 

STAY LONG WITH THE STOP-LOSS OF 16860

 

WORLD MARKETS

 

S & P 500 was little changed while Dow and Nasdaq fell 0.6% and 0.4% respectively as Federal Reserve Chair Jerome Powell said the central bank is open to higher rate hikes to combat rising inflation. Resurgence in oil and persisting tension between Ukraine and Russia also weighed on the sentiment.

 

Ongoing peace talks between Russia and Ukraine failed to make progress and Ukraine refused to surrender the port city of Mariupol to Russian forces.

 

US 10-year treasury yield jumped 15 bps to 2.302%. Dollar index rose quarter of a percent to 98.47. Spot gold rose 0.5% to $1,931.16 per ounce.

 

Oil surged as European Union nations considered joining the United States in a Russian oil embargo and after a weekend attack on Saudi oil facilities.  Brent rose 7.1% to $115.62, while WTI crude futures settled 7.1%, or $7.42, higher at $112.12.

 

In Europe, FTSE rose half a percent but DAX and CAC fell 0.6% each.

 

AT HOME

 

Benchmark indices tumbled a percent, snapping a 2-day win streak and falling for the second day in last 9 sessions. Sensex settled at 57292, down 571 points while Nifty lost 169 points to finish at 17117. Nifty mid-cap index fell 0.3% while small-cap index inched up 0.2%. BSE Utilities and Power indices slipped 1.9% and 1.8% respectively, becoming top losers among the sectoral indices while Metal index climbed 1.7%, becoming top gainer, followed by 0.2% higher Basic Materials index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2962 cr, 551 cr and 1234 cr respectively. DIIs were net buyers to the tune of Rs 253 cr.

 

Rupee depreciated 32 paise to end at 76.12/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.7% and 0.4% respectively while Shanghai is off 0.2%. SGX Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that upon crossover of last week's high of 17344, next upside levels to eye would be 17490, 17639 and 17794, which are the tops made on 16, 10 and 2 February respectively; We had also said that Immediate support on the hourly chart had moved up to 16860, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17353 at the open, slipped to end at 17117.

 

A crossover of yesterday's high, 17353, which roughly coincided with last week's high, is required for a fresh upmove. If that happens, 17490 would be the next upside level to eye; Meanwhile, trading longs can be held on to with the stop-loss of 16860, which continues to be immediate support on the hourly chart.

 

36700 continues to be immediate hurdle for Banknifty; 35400 continues to be immediate support.