17600 BELOW 17770; 18100 IS IMMEDIATE HURDLE

 

17600 BELOW 17770; 18100 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.6%-1.4% after digesting a mixed batch of economic reports. Dow closed at lowest level in two months.

 

Initial jobless claims came in better than expected, but import prices saw a smaller drop than estimates suggested. Retail sales beat expectations, but were negative when excluding autos. Manufacturing data also showed a slowing economy.

 

Adobe plunged 16% after the company announced a $20 billion deal to buy Figma.

 

US 10-year Treasury yield rose 5 bps to 3.45%. Dollar index inched up 0.1% to 109.75. Spot gold plunged 1.9% to $1,664 per ounce, hitting its lowest level since April 2020.

 

Brent crude tumbled 3.5% to $90.84 a barrel and WTI crude settled 3.8% lower at $85.10 per barrel.

 

In Europe, FTSE inched up 0.1% but DAX and CAC fell 0.6% and 1% respectively.

 

AT HOME

 

After gaining half a percent in the initial trade, benchmark indices reversed these gains through the session to end lower by seven tenth of a percent. Sensex settled at 59934, down 413 points while Nifty lost 126 points to finish at 17877. Nifty mid-cap index rose 0.4% but small-cap index ended marginally in the red. BSE Power and Utilities indices gained 2% each, becoming top gainers among the sectoral indices while IT and Teck indices were the top losers, down 1.6% and 1.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1271 cr, 944 cr and 3452 cr respectively. DIIs were net sellers to the tune of Rs 929 cr.

 

Rupee depreciated 26 paise to end at 79.70/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 1.1% each while Shanghai is off 0.6%. SGX Nifty is suggesting more than 100 point lower start for our market.

 

In yesterday's report we had said that 18115 was the next upside levels to eye and that 17750 continued to be immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 18096, reversed to end at 17877. The benchmark is set to open below 17800 today.

 

Nifty is repeatedly getting resisted near 18100 for past couple of sessions. A crossover of this hurdle is required for a fresh upmove. If that happens, 18350, the top made in Janaury, would be the next target. 17770, the low made Wednesday, is the immediate support, upn breach of which, 34-DMA, placed around 17600, would be next downside level to eye.

 

Above yesterday's high, i.e. 41840, 42500-43000 would be the next target area for Banknifty; 40700 is immediate support.