15000, 14750 ARE SUPPORTS; 15800 IMMEDIATE HURDLE

 

15000, 14750 ARE SUPPORTS; 15800 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices nosedived 2.4%-4.1% as as hawkish policy actions from central banks fueled worries of a possible recession.

 

US 10-year treasury yield, after hitting a high of 3.495%, slipped to end 10 bps lower at 3.199%. Dollar index slipped 1% to 103.80. Spot gold rose 1.3% to $1857 per ounce.

 

Brent crude futures settled at $119.81, up $1.30, or 1.1% and WTI crude futures ended up $2.27, or 2%, at $117.58.

 

European markets fell 1.2%-3.3%. The Bank of England increased the Bank Rate by 25 basis points to 1.25%, marking a fifth consecutive hike to interest rates. The Swiss National Bank delivered its first rate hike in 15 years, increasing policy rate to -0.25% from the -0.75% it has deployed since 2015.

 

 

AT HOME

 

After opening a percent higher, benchmark indices nosedived 3% from the top to end lower by 2%, extending the losing streak to 5th consecutive day and closing at the lowest level after May 2021. Sensex settled at 51495, down 1045 points while Nifty lost 331 points to finish at 15360. Nifty mid-cap and small-cap indices tumbled 2.3% and 3.4% respectively to close at the lowest level after 2nd June 2021 and 23rd April 2021 respectively. All the BSE sectoral indices ended in red, with Metal and Basic Materials indices leading the losses, down 5.5% and 3.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3258 cr, 1529 cr and 1394 cr respectively. DIIs were net buyers to the tune of Rs 1929 cr.

 

Rupee was unchanged at 78.07/$.

 

OUTLOOK

 

Today morning, Nikkei is down more than 2% while Hang Seng and Shanghai are up 1% and 0.3% respectively. SGX Nifty is suggesting a modestly higher start for our market.

 

In yesterday's report we had said that 15659, the low made Tuesday, was the immediate support, upon breach of which, 15450 would be next downside level to eye. We has also said that 16200-16250 was the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

Nifty broke 15659 and plunged all the way to 15335 before closing at 15360.

 

15000 is the next support for Nifty, below which 14750, around which a trendline adjoining bottoms made in December 2021 and March 2022 is placed, would be the next downside level to eye; Immediate resistance on hourly chart has moved lower to 15800, with the stop-loss of which, trading shorts can be held on to.

 

32155, the low made in March, is the immediate support for Banknifty, below which, 30000, where a downward sloping trendline adjoining bottoms made in December and March is placed, would be the next downside level to eye; 33500 is the immediate hurdle.