17581 ABOVE 17428; 17025 IS IMMEDIATE SUPPORT

 

17581 ABOVE 17428; 17025 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.7%-1.2% as treasury yield and dollar extended upmove ahead of Friday's non-farm payroll data.

 

US 10-year treasury yield rose 7 bps to 3.828%. Dollar index rose half a percent to 112.26. Gold fell quarter of a percent to $1712 per ounce.

 

Brent crude futures settled at $94.42 barrels, up $1.05, or 1.1% and WTI crude futures settled at $88.45 barrels, gaining 69 cents, or 0.8%.

 

European markets fell 0.4%-1%.

 

AT HOME

 

After rising just under a percent in the initial trade, benchmark indices gave away bulk of the gains to end higher by three tenth of a percent. Sensex settled at 58222, up 156 points while Nifty added 57 points to finish at 17331. Nifty mid-cap and small-cap indices climbed a percent and quarter each. Nifty Metal and Media indices surged 3.2% and 2.7% respectively, becoming top gainers among the sectoral indices while FMCG and Pharma indices were the top losers, down 0.4% and 0.3% respectively.

 

FIIs net bought stocks and stock futures worth Rs 279 cr and 96 cr respectively but net sold index futures worth Rs 175 cr. DIIs were net sellers to the tune of Rs 44 cr.

 

Rupee depreciated 36 paise to end at 81.88/$.

 

OUTLOOK

 

Nikkei and Hang Seng are trading with cuts of 0.5% and 0.9% respectively. SGX Nifty is suggesting nearly 50 points lower start for our market.

 

In yesterday's report we had said that 17422 and 17581, the 50% and 61.8% retracement levels of the recent 18096-16747 fall, are the next upside levels to eye and that 17000 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty touched a high of 17428 and retreated from there to end at 17331.

 

Upon crossover of yesterday's high, i.e. 17428, next upside level to eye would be 17581, which is the 61.8% retracement levels of the recent 18096-16747 fall; 17025 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 20-DMA, placed around 39840, is the next upside levels to eye; 38450 is the immediate support.