17422 BELOW 17623; 17850-17900 IS THE IMMEDIATE RESISTANCE ZONE

 

17422 BELOW 17623; 17850-17900 IS THE IMMEDIATE RESISTANCE ZONE

 

WORLD MARKETS

 

After falling nearly a percent in the initial trade, US indices rebounded to end higher by 0.1%-0.4%

 

Weekly jobless claims in the U.S. fell to 166,000 last week, the lowest number in more than 53 years.

 

US 10-year treasury yield rose 6 bps to 2.66%. Spot gold rose 0.4% to $1,931 per ounce. Dollar index inched up 0.1% to 99.75.

 

Brent crude futures fell 49 cents, or 0.5%, to $100.58 a barrel while WTI crude fell 20 cents, or 0.6%, to settle at $96.03 a barrel.

 

Main European markets fell half a percent each.

 

AT HOME

 

Benchmark indices tumbled nearly a percent, extending the losing streak to third straight day. Sensex settled at 59034, down 575 points while Nifty lost 168 points to finish at 17639. Nifty mid-cap and small-cap indices fell 1% and 0.3% respectively, snapping a 7-day winning streak. BSE Oil & Gas and Energy indices tumbled 2.6% and 2.3% respectively, becoming top losers among the sectoral indices while Healthcare index was the top gainer, up 0.4%, followed by 0.1% higher Bankex.

 

FIIs net sold stocks, index futures and stock futures worth Rs 5010 cr, 1999 cr and 2970 cr respectively. DIIs were net buyers to the tune of Rs 1775 cr.

 

Rupee depreciated 20 paise to end at 75.96/$.

 

OUTLOOK

 

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

 

In yesterday’s report we had said that 17600 continues to be downside support and 18150 continued to be immediate hurdle for Nifty.

 

Nifty plunged all the way to 17623 before closing at 17639.

 

17623, the low made yesterday, is the immediate support for Nifty, upon breach of which, 17422, the monthly low made on 1st April, would be the next downside level to eye; 17850-17900 is the immediate resistance zone on the hourly chart.

 

37000-36900 is the immediate support area for Banknifty; 38765, the top made on Monday, is the immediate hurdle.

 

RBI's Monetary Policy Committee will conclude its 3-day meeting today and is widely expected to hold rate steady for the 11th straight time. Market however is expecting change in wording of stance and forward guidance to prepare for the future tightening. CPI forecast is expected to go up while growth forecast might be lowered.