17422 IS THE NEXT SUPPORT; 17850 IMMEDIATE HURDLE

 

17422 IS THE NEXT SUPPORT; 17850 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices plunged 1.2%-2.2% as U.S. treasury yields continued to climb. Markets also braced for a key inflation report Tuesday.

 

US 10-year treasury yield rose 8 bps to 2.784%. Dollar index inched up 0.1% to 99.97. Gold gained 0.4% to reach $1954/ounce.

 

Oil prices slipped to the lowest level since February as lockdowns in China sparked demand fears. Brent crude fell 4.2% to $98.48 per barrel, the first settle under $100 since March 16. WTI crude futures declined 4.04% to settle at $94.29.

 

In Europe, FTSE and DAX fell 0.6% each while CAC inched up 0.1%. UK's February GDP growth came in at 0.1%, short of a 0.3% consensus forecast.

 

AT HOME

 

Sensex and Nifty slipped 0.8% and 0.6% respectively, closing in red for the fourth time in last five sessions. Sensex settled at 58964, down 482 points while Nifty lost 109 points to finish at 17675. Nifty mid-cap index however gained 0.6% while small-cap index inched lower by 0.1%. BSE Power and Utilities indices soared 5.2% and 5.1% respectively, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 1.5% and 1.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1145 cr, 2166 cr and 917 cr respectively. DIIs were net buyers to the tune of Rs 487 cr.

 

Rupee depreciated 5 paise to end at 75.95/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are down 1.4% and 0.2% respectively while Hang Seng is up 0.1%. SGX Nifty is suggesting around 130 points lower start for our market.

 

In yesterday's report we had said that 17850-17900 continued to be immediate resistance zone,  while 17600, the low made last week, was the immediate support.

 

Nifty, after touching a high of 17779, slipped to end at 17675 and is set to open near 17550 today.

 

17422, the monthly low made on 1st April, is the next downside level to eye; 17850 is the immediate hurdle.

 

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