17850-17900 IS THE IMMEDIATE RESISTANCE ZONE; 17600 IMMEDIATE SUPPORT

 

17850-17900 IS THE IMMEDIATE RESISTANCE ZONE; 17600 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow rose 0.4% while S & P 500 and Nasdaq fell 0.3% and 1.3% on Friday as treasury yields across the credit extended the upmove, pressuring technology stocks.

 

US 10-year treasury yield rose nearly 5 bps to 2.706%, nearing its highest level hit in March 2019. Dollar index, after hitting a high of 100.19, cooled off to end 0.1% higher at 99.84. Spot gold rose 0.6% to $1,944 per ounce

 

Brent crude futures added 2.2% to reach $102.78 a barrel and WTI crude futures settled 2.3% higher at $98.26.

 

European markets rose 1.3%-2.1%

 

For the week, Nasdaq plunged 3.9% while S&P 500 and Dow dropped 1.3% and 0.3%, respectively. Gold rose 1.1%. Dollar index jumped 1.3% to 99.84.

 

AT HOME

 

After a lackluster morning, Sensex and Nifty spiked up in noon trade to end higher by 0.7% and 0.8% respectively, snapping a 3-day losing streak. Sensex settled at 59447, up 412 points while Nifty added 145 points to finish at 17784. Nifty mid-cap and small-cap indices rose 1% and 0.4% respectively. Except a marginally lower IT index, all the BSE sectoral indices ended higher, with Power and Metal indices on the top, up 2% each.

 

FIIs net sold stocks and stock futures worth Rs 575 cr and 1371 cr respectively but net bought index futures worth Rs 163 cr. DIIs were net sellers to the tune of Rs 17 cr.

 

Rupee appreciated 7 paise to end at 75.89/$.

 

RBI's Monetary Policy Committee unanimously decided to keep key repo rate unchanged at 4% having ‘accommodative’ stance with focus on withdrawal of accommodation. FY23 CPI forecast has been raised to 5.7% from 4.5% earlier while FY23 GDP projection has been lowered to 7.2% as against 7.8% earlier.

 

For the week, Sensex and Nifty gained 0.3% and 0.6% respectively, extending the winning streak to second consecutive week.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-2% and SGX Nifty is suggesting around 60 points lower start for our market.

 

In Friday's report we had said that 17623, was the immediate support for Nifty, while 17850-17900 was the immediate resistance zone on the houlry chart.

 

Nifty, after touching a low of 17600, rebounded to touch a high of 17842 before closing at 17784.

 

17850-17900 continues to be immediate resistance zone, upon crossover of which, 18115, the top made last week, would be the bigger hurdle to eye; 17600, the low made last week, is the immediate support.

 

For Banknifty, 38765, the top made last week, is the immediate upside level while 37000-36900 is the immediate support zone.

 

TCS will report its quarterly earnings today.