TRAIL STOP-LOSS TO 17006

 

TRAIL STOP-LOSS TO 17006

 

WORLD MARKETS

 

US indices rose 0.7%-2%, brushing off hawkish comments from Fed Chair Jerome Powell and a continued rise in bond yields.

 

US 10-year treasury yield rose 6.2 bps to 2.379%, hitting highest level since May 2019. Dollar index, after hitting a high of 98.96, eased to end little lower at 98.42. Spot gold fell 0.7% to $1,922 per ounce.

 

Brent crude declined 14 cents to $115.48 a barrel and WTI crude settled 36 cents lower at $111.76.

 

European markets added 0.5%-1.2%. ECB President Christine Lagarde said the Fed and ECB will move out of sync, as the war in Ukraine has very different impacts on their respective economies.

 

AT HOME

 

After falling nearly two third of a percent, benchmark indices saw a sharp reversal in noon to end higher by 1.2% each, marking 8th positive close in last 10 sessions. Sensex settled at 57989, up 696 points while Nifty added 198 points to finish at 17315. Nifty mid-cap and small-cap indices inched up 0.3% each. BSE Oil & Gas and IT indices climbed 1.9% each, becoming top gainers among the sectoral indices while Realty and FMCG indices were the top losers, down 1.1% and 0.7% respectively.

 

FIIs net bought stocks and index futures worth Rs 384 cr and 901 cr but net sold stock futures worth Rs 1152 cr. DIIs were net sellers to the tune of Rs 602 cr.

 

Rupee depreciated 5 paise to end at 76.17/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 2.6% and 1.3% respectively while Shanghai is flat. SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that a crossover of Monday's high, 17353, was required for a fresh upmove and had advised holding on to long positions with the stop-loss of 16860.

 

Nifty, after touching a low of 17006, rebounded to end at 17315 and is set to open near 17400 today.

 

17490 and 17640, the tops made on 16th and 10th February respectively, are the next upside levels to eye; 17006, the low made yesterday, which also coincides with 200 as well as 34-DMA, is now the immediate support, with the stop-loss of which, trading longs can be held on to.

 

36700 continues to be immediate hurdle for Banknifty, upon crossover of which, 37000 would be the next target; 35384, the low made yesterday, is the immediate support.