16824 CONTINUES TO BE IMMEDIATE SUPPORT; 17450 IMMEDIATE HURDLE

 

16824 CONTINUES TO BE IMMEDIATE SUPPORT; 17450 IMMEDIATE HURDLE

 

WORLD MARKETS

 

After rising nearly a percent and half in the first half, US indices gave away most of the gains in second half to end flat to marginally higher.

 

US 10-year treasury yield rose 11 bps to 2.834%. Dollar index jumped 0.7% to 103, hitting a 5-year high. Spot gold dropped 1.1% to $1,884.74 per ounce.

 

Brent crude futures added 33 cents to end the day at $105.32 per barrel and WTI futures settled 0.3% higher at $102.02 per barrel.

 

European markets gained 0.3%-0.7%.

 

Meanwhile Russian state energy firm Gazprom decided to halt natural gas supplies to Poland and Bulgaria — two members of the European Union — with Moscow demanding payment in rubles.

 

AT HOME

 

Benchmark indices slipped 0.94% each, giving away nearly two third of yesterday's gains. Sensex settled at 56819, down 537 points while Nifty lost 162 points to finish at 17038. Nifty mid-cap and small-cap indices fell 0.9% and 0.6% respectively. Except a flat Metal index, all the BSE sectoral indices ended in red, with Power and Utilities indices leading the losses, down 1.9% and 1.8% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 4065 cr, 3387 cr and 971 cr respectively. DIIs were net buyers to the tune of Rs 1918 cr.

 

Rupee appreciated 5 paise to end at 76.53/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.3%-0.8% and SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 16824, the low made last week, continued to be immediate support while 20-DMA, placed around 17450 continued to be immediate hurdle.

 

Nifty, after touching a low of 16958, closed at 17038.

 

16824, the low made last week, continues to be immediate support; 20-DMA, placed around 17450 continues to be immediate hurdle.

 

For Banknifty, 35511, the low made Monday, which roughly coincided with the 50% retracement level of the 32155-38765 upmove, is the immediate support, below which, 35016, the low made on28th March, would be next downside level to eye; 36900-37000 is the resistance zone.

 

Axis Bank and Ambuja Cement will report their quarterly earnings today.