17250-17280 IS THE IMMEDIATE RESISTANCE ZONE; 16950 IMMEDIATE SUPPORT

 

17250-17280 IS THE IMMEDIATE RESISTANCE ZONE; 16950 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

After starting with cuts of 2-3% on the back of hot inflation data, US indices saw a sustained northward move through the session to end with hefty gains of 2.2%-2.8%. S & P 500 and Nasdaq snapped 6-day losing streak.

 

The consumer price index increased 0.4% month-on-month, more than the 0.3% estimate. On an annual basis, inflation was up 8.2%. Core CPI, which strips out food and energy, was up 0.6% month over month, also higher than expected.

 

US 10-year treasury yield rose 5 bps to 3.946%. Dollar index, after hitting an intraday high of 113.92, fell to end 0.7% lower at 112.46. Pound surged 2% after reports the British government is discussing making changes to the fiscal plan announced last month. Gold fell half a percent to $1665 per ounce.

 

Brent crude futures rose 2.4% to $96.47 a barrel and U.S. crude rose $1.93, or 2.2%, to $89.20 per barrel.

 

European markets gained 0.4%-1.5%.

 

AT HOME

 

Benchmark indices ended lower by nearly two third of a percent after a choppy session. Sensex lost 390 points to settle at 57235 while Nifty finished at 17014, down 109 points. Nifty mid-cap and small-cap indices fell 0.7% and 0.5% respectively. Nifty PSU Bank tumbled 1.6%, becoming top loser among the sectoral indices, followed by 1.3% lower Bank and Financial services indices.

 

FIIs net sold stocks, index futurs and stock futures worth Rs 1636 cr, 558 cr and 1010 cr respectively. DIIs were net buyers to the tune of Rs 753 cr.

 

Rupee depreciated 3 paise to end at 82.3450/$.

 

Infosys' quarterly results largely met estimates. The company raised full year revenue guidance even as it lowered upper end of margin guidance.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 1%-3% and SGX Nifty is suggesting more than 200 points gap-up start for our market.

 

In yesterday's report we had said that 16855, the low made last week, continued to be next support while 17250 continues to be immediate hurdle on the hourly chart.

 

Nifty slipped to 16956 before closing at 17014 and is set to open above 17200 today.

 

17250-17280 is the immediate resistance area on the hourly chart, upon crossover of which, 17428, the top made last week, would be next upside level to eye; 16950, where Nifty has repeatedly taken support over past three sessions, is the immediate support, upon breach of which, 16850-16750 would be next support area.

 

For Banknifty, 39608, the top made last week, continues to be immediate hurdle, upon crossover of which, 40038 and 40760, the 61.8% and 78.6% retracement levels of the recent 41677-37386 fall, would be next upside levels to eye; 38437, the low made yesterday, is the immediate support.

 

Bajaj Auto, Shree Cements and Tata Elxsi will report their quarterly earnings today.