17600 CONTINUES TO BE IMMEDIATE SUPPORT; 18150 IMMEDIATE HURDLE

 

17600 CONTINUES TO BE IMMEDIATE SUPPORT; 18150 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.4% and 1% respectively while Nasdaq nosedived 2.2%, reacting to Fed guidance on tightening monetary policy.

 

Fed meeting minutes showed that officials are looking to shrink the balance sheet by $95 billion a month and one or more 50-basis-point interest rate hikes could be warranted to battle surging inflation.

 

US 10-year treasury yield surged to 2.66% before easing to end 5 bps higher at 2.60%. Dollar index inched up 0.1% to 99.62. Gold was flat at $1,923.50 per ounce.

 

Oil slipped following a surprising rise in U.S. crude stocks and on news that large consuming nations would also release oil from reserves in conjunction with the United States to counter supply worries. Brent futures declined 5.2% to $101.07 per barrel and U.S. crude settled 5.6% lower at $96.23 per barrel.

 

European markets fell 0.3%-2.2%.

 

AT HOME

 

Sensex and Nifty tumbled 0.9% and 0.8% respectively, extending the losing streak to second straight day. Sensex settled at 59610, down 566 points while Nifty lost 150 points to finish at 17807. Nifty mid-cap and small-cap indices however gained 0.6% and 0.1% respectively, extending the winning streak to seventh straight session. BSE Utilities and Power indices surged 1.9% and 1.8% respectively, becoming top gainers among the sectoral indices while IT index was the top loser, down 1.4%, followed by 1.2% lower Finance and Teck indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2280 cr, 126 cr and 1804 cr respectively. DIIs were net buyers to the tune of Rs 623 cr.

 

Rupee depreciated 44 paise to end at 75.76/$.

 

OUTLOOK

 

Today morning, Nikkei is down 1.7%, Shanghai is little changed while Hang Seng is up 0.4%. SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 18150 continued to be immediate hurdle for Nifty while 17600 continued to be downside support with the stop-loss of which, trading longs could be held on to.

 

The benchmark slipped to touch a low of 17780 before closing at 17807 and is set to open below 17750 today.

 

17600 continues to be downside support and 18150 continues to be immediate hurdle for Nifty; Trading longs can be held on to with the stop-loss of 17600.

 

36900 continues to be immediate support for Banknifty; 39425, the top made in February, is the upside level to eye.