17100 IMMEDIATE SUPPORT; 17575 IMMEDIATE HURDLE

 

17100 IMMEDIATE SUPPORT; 17575 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.6%-1%, extending Friday's plunge, amid increasing concerns over rising rates and tighter U.S. monetary policy.

 

US 10-year treasury yield rose nearly 8 bps to 3.114%. Dollar index, after hitting a fresh 20-year high of 109.47, eased to end marginally lower at 108.74. Gold was flat at $1737 per ounce.

 

Oil surged as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar and a dire outlook for U.S. growth. Brent crude rose 4.1% to $105.09 a barrel and WTI crude gained 4.2%, to $ 97.01.

 

European markets fell 0.6%-0.9%

 

AT HOME

 

After opening with cuts of more than 2%, benchmark indices recouped some of the losses to end lower by nearly a percent and half and closed at the lowest level in a month. Sensex settled at 57972, down 861 points while Nifty lost 246 points to finish at 17312. Nifty mid-cap and small-cap indices fell 0.8% and 1% respectively. Except 0.4% and 0.1% higher FMCG and Energy indices respectively, all the BSE sectoral indices ended in red, with IT and Teck indices leading the losses, down 3.3% and 3.1% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 561 cr, 1122 cr and 1532 cr respectively. DIIs were net buyers to the tune of Rs 144 cr.

 

Rupee depreciated 9 paise to end at 79.96/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.8% but Hang Seng and Shanghai are down 1.5% and 0.2% respectively. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 17050, was the next downside level to eye while 17726, the top made last week, would work as immediate hurdle.

 

Nifty, after making a bottom of 17166, rebounded to end at 17312.

 

34-DMA, which has moved up to around 17100, continues to be downside support to eye; 17575 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

37944, the low made yesterday, is the immediate support for Banknifty, upon breach of which, 34-DMA, placed around 37500, would be next support; 38846, the upper end of the gap created by yesterday's gap-down opening, would be immediate hurdle above which 39471, the top made last week, would be the next upside level to eye.