15900 BELOW 16142; 16850 IS THE IMMEDIATE HURDLE

 

15900 BELOW 16142; 16850 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices nosedived 2%-4.3% with Nasdaq leading the losses and S&P 500 falling to its lowest level in more than a year amid concerns of surging inflation pressures and slowing economic growth.

 

US 10-year treasury yield, after touching a high of 3.203%, reversed to end 9 bps lower at 3.040%. Dollar index inched up 0.1% to 103.75. Gold tumbled 1.5% to $1854 per ounce.

 

Brent crude fell $6.45, or 5.7%, to settle at $105.94 a barrel. U.S. West Texas Intermediate crude fell $6.68, or 6.1%, to settle at $103.09 a barrel.

 

European markets fell 2.2%-2.8%

 

AT HOME

 

Benchmark indices ended lower by two third of a percent each after recouping more than half of the losses suffered in the initial trade. Sensex settled at 54470, down 365 points while Nifty finished at 16301, down 109 points. Both the indices closed at their lowest level after 9^th March 2022. Nifty mid-cap and small-cap indices tumbled 1.8% and 2.1% respectively. BSE Power and Utilities indices plunged 2.5% each, becoming top losers among sectoral indices while Telecom and Teck indices were the top gainers, up 0.4% each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3362 cr, 687 cr and 362 cr respectively. DIIs were net buyers to the tune of Rs 3077 cr.

 

Rupee depreciated 55 paise to end at 77.46/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-2.7% with Hang Seng leading the losses. SGX Nifty is suggesting around 120 points lower start for our market.

 

In yesterday's report we had said that 16200, the 78.6% retracement level of the entire 15671-18115 upmove, continued to be next support to eye, upon breach of which, next meaningful support will come only at 15671, the bottom made in March; We had also advised trailing stop-loss in short positions to 16850.

 

Nifty, after touching a low of 16142, rebounded to end at 16301 and is set to open near 16200 today.

 

16142, the low made yesterday, is the immediate support, upon breach of which, 15900 followed by 15671 would be next downside levels to eye; 16850 is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 33570, the 78.6% retracement level of the 32155-38765 upmove, is the next downside level to eye; 35600 is immediate hurdle.