17060, 16824 ARE THE SUPPORTS 17400-17450 RESISTANCE ZONE

 

17060, 16824 ARE THE SUPPORTS 17400-17450 RESISTANCE ZONE

 

WORLD MARKETS

 

US indices, after a positive start, saw a sustained downward move through the session to end with cuts of 1%-2.1% as Fed Chair Powell Powell hinted at more aggressive rate hikes ahead in order to bring down inflation.

 

Weekly jobless claims came in slightly higher than expected at 184,000.

 

US 10-year treasury yield jumped 9 bps to 2.94%. Dollar index rose 0.3% to 100.62. Gold fell 0.3% to $1951 per ounce.

 

WTI crude futures gained 1.6% to settle at $103.79 a barrel and Brent crude rose 1.3% to $108.70.

 

In Europe, FTSE was flat while DAX and CAC gained 1% and 1.4% respectively.

 

AT HOME

 

Benchmark indices soared a percent and half, registering best day since 4^th April and extending the winning streak to second straight day. Sensex settled at 57911, up 874 points while Nifty added 256 points to finish at 17392. Nifty mid-cap and small-cap indices rose 1.1% and 1.6% respectively. Except a 0.1% lower Metal index, all the BSE sectoral indices ended higher, with Auto and Consumer Discretionary Goods & Services indices on the top, up 2.1% and 1.6% respectively.

 

FIIs net sold stocks worth Rs 714 cr but net bought index futures and stock futures worth Rs 60 cr and 1385 cr respectively. DIIs were net buyers to the tune of Rs 2823 cr.

 

Rupee appreciated 6 paise to end at 76.15/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.6%-2% and SGX Nifty is suggesting more than 200 points lower start for our market.

 

In yesterday's report we had said that 17400 continued to be immediate hurdle while 16824, the low made Tuesday, continued to be immediate support.

 

Nifty surged to touch a high of 17414 before closing at 17392 and is set to open near 17200 today.

 

The benchmark is yet to confirm a "Buy" on the hourly chart and a decisive and sustained crossover of 17400-17450 resistance zone is required for that; 17060 is the immediate support, below which, 16824, the low made Tuesday, would be the next downside level to eye.

 

37260 continues to be immediate hurdle for Banknifty; 35926, the low made Tuesday, continues to be immediate support, below which, 35460, the 50% retracement level of the 32155-38765 upmove, would be the next downside level to eye.