STAY SHORT WITH THE STOP-LOSS OF 16275

 

STAY SHORT WITH THE STOP-LOSS OF 16275

 

WORLD MARKETS

 

US indices tumbled 2.8%-4.7% on fears of aggressive interest rate hike, with the S & P 500 hitting its lowest level since March 2021, and falling more than 21% from its January record. Dow is roughly 17% off its record high while Nasdaq Composite is now more than 33% off its November record.

 

US 10-year treasury yield jumped 21 bps to 3.366%, hitting its highest level since 2011. Dollar index jumped 1% to 105.20, its highest level in two decades. Gold slipped 2.7% to $1820 per ounce.

 

Bitcoin slumped 19% after major U.S. cryptocurrency lending company Celsius Network froze withdrawals and transfers citing “extreme” conditions.

 

Brent crude rose 26 cents to settle at $122.27 a barrel and WTI crude rose 26 cents to $120.93 a barrel.

 

European markets fell 1.5%-2.8%. The U.K. economy unexpectedly contracted by 0.3% month-on-month in April, official data showed.

 

AT HOME

 

Benchmark indices nosedived 2.6% each with Nifty closing at the lowest level after 30th July 2021. Sensex settled at 52846, down 1456 points while Nifty lost 427 points to finish at 15774. Nifty mid-cap and small-cap indices tumbled 2.9% and 3.9% respectively to close at the lowest level after 24th June 2021 and 4th May 2021 respectively. All the BSE sectoral indices ended in red, with IT and Teck indices leading the losses, down 3.9% and 3.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 4164 cr, 1799 cr and 1797 cr respectively. DIIs were net buyers to the tune of Rs 2814 cr.

 

Rupee depreciated 20 paise to end at 78.03/$.

 

May CPI eased to 7.04% from 7.79% in April. Core CPI too eased to 6.2% from 7%.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.9%-2.2% and SGX Nifty is suggesting around 90 points lower start for our market.

 

In yesterday's report we had said that 15903, the low made on 26th May, was the immediate support, below which, 15735, the bottom made in May, would be the important level to eye. We had also advised holding on to short positions with the stop-loss of 16400.

 

Nifty, after opening at 15877, plunged all the way to 15684 before closing at 15774. The benchmark is set to open near 15700 today.

 

15671, the low made in March, is the important immediate support, below which, 15550 would be next intermediate support but next meaningful support will come only around 15000; 16275 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

33000, the low made in May, is the immediate support for Banknifty, below which, 32155, the low made in March, would be the next downside level to eye; 34600 is immediate hurdle.