NIFTY NEARLY TESTS 17735 SUPPORT; 15985-16211 IS THE RESISTANCE ZONE

 

NIFTY NEARLY TESTS 17735 SUPPORT; 15985-16211 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

After rising sharply from the initial lower levels, US indices slipped in last hour to end with cuts of 0.3%-0.8%.

 

U.S. weekly jobless claims came in at 218,000 in the week ending May 14, an increase of 21,000 from the previous week.

 

US 10-year treasury yield fell 5 bps to 2.839%. Dollar index tumbled 1% to 102.87. Spot gold rose 1.4% to $1,840.97 per ounce.

 

Brent crude futures for July rose 2.7% to $112.04 per barrel and WTI crude futures for June settled 2.4% higher at $112.21 per barrel.

 

Main European markets saw cuts of 0.9%-1.8%.

 

AT HOME

 

Sensex and Nifty nosedived 2.6% each, suffering worst cut after 7th March and 24th February respectively. Sensex settled at 52792, down 1416 points while Nifty lost 430 points to finish at 15809. Nifty mid-cap and small-cap indices fell 3% and 2.7% respectively. All the BSE sectoral indices ended in red, with IT and Teck indices leading the losses, down 5.2% and 5.1% respectively.

 

FIIs net sold stocks and index futures worth Rs 4900 cr and 921 cr respectively but net bought stock futures worth Rs 44 cr. DIIs were net buyers to the tune of Rs 3226 cr.

 

Rupee depreciated 15 paise to end at 77.73/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 1%-2.2% and SGX Nifty is suggesting more than 200 points higher start for our market.

 

In yesterday's report we had said that 15985 continued to be immediate support on the hourly chart, a sustained trading below which would open up the possibility of retest of recent 15735 bottom.

 

Nifty broke 15985 and plunged all the way to 15775 before closing at 15809.

 

15735, the low made last week, followed by 15671, the low made in March, are important supports to eye; 15985-16211, the gap created by yesterday's gap-down opening, would act as the resistance zone.

 

33000, the low made Monday, is the immediate support for Banknifty, upon breach of which, 32155, the low made in March, would be the next downside level to eye; 33633-34134, the gap created by yesterday's gap-down opening, would act as the resistance zone.