TRAIL STOP-LOSS TO 16450

 

TRAIL STOP-LOSS TO 16450

 

WORLD MARKETS

 

Dow ended flat while S & P 500 and Nasdaq fell 0.7% and 2% respectively, getting ready for Fed rate hike and watching Ukraine developments. S & P 500 and Nadaq had their seventh negative session in the past eight.

 

US Fed commences a two-day session today and is widely expected to raise its target fed funds rate by a quarter percentage point from zero.

 

Ukraine and Russia started a fresh round of ceasefire talks yesterday. Meanwhile, Russia is approaching a series of deadlines to make payments on its debt.

 

US 10-year treasury yield jumped 12 bps to 2.142%, hitting its highest level since July 2019. Dollar index was little changed at 99.09. Spot gold fell nearly 1.6% to $1,953.40 per ounce

 

Oil tumbled amid talks between Russia and Ukraine as well as new Covid-19 lockdowns in China — which could dent demand. WTI crude settled 5.8% lower at $103 per barrel while Brent crude shed 5% to $106.90 per barrel.

 

AT HOME

 

Sensex and Nifty surged 1.7% and 1.4% respectively, extending the winning streak to fifth consecutive day and closing at the highest level after 23rd February, 2022. Sensex settled at 56486, up 935 points while Nifty added 240 points to finish at 16871. Nifty mid-cap and small-cap indices inched up 0.2% each, significantly underperforming main indices.

 

BSE Bankex climbed 2.3%, becoming top gainer among the sectoral indices, followed by 2.2% higher IT and Teck indices. Realty index slipped 1.7%, becoming top loser, followed by 0.8% lower Oil & Gas index.

 

FIIs net sold stocks and stock futures worth Rs 177 cr and 840 cr respectively but net bought index futures worth Rs 569 cr. DIIs were net buyers to the tune of Rs 1099 cr.

 

Rupee appreciated 3 paise to end at 76.56/$.

 

February retail inflation rose to 6.07% VS 6.01% in January.

 

OUTLOOK

 

Today morning, Nikkei is up 0.2% but Hang Seng and Shanghai are down 3.6% and 2.5% respectively. SGX Nifty is suggesting around 90 points lower start for our market.

 

In yesterday's report we had said that 16757, the top made last week,  continued to be immediate hurdle, upon crossover of which, 16960 around which 200 as well as 34-DMA are placed, would be the next upside level to eye. We had also advised holding on to long positions witht he stop-loss of 16150.

 

Nifty crossed 16757 and surged all the way to 16888 before closing at 16871. The benchmark is set to open below 16800 today.

 

17000, around which 200 as well as 34-DMA are placed, continues to be next upside target; Immediate support on the hourly chart has moved up to 16450, with the stop-loss of which, trading longs can be held on to.

 

35800 is the next upside target for Banknifty; 34100 is immediate support.