17850-17800 IS THE SUPPORT AREA

 

17850-17800 IS THE SUPPORT AREA

 

WORLD MARKETS

 

US indices nosedived 1.6%-3.3% after Fed Chair Powell said it was “premature” to talk about a rate hike pause and that the terminal rate would likely be higher than previously stated. Stock initially rose, reading Fed's statement as dovish.

 

US 10-year treasury yield, after falling to 3.974%, rebounded to end 6 bps higher at 4.105%. Dollar index rebounded from intraday low of 110.426 to end half a percent higher at 112.115. Gold ended 0.8% lower at $1635, having tested high of $1670 initially.

 

Brent crude settled up $1.51, or 1.6%, to $96.16 while WTI crude settled up $1.63, or 1.8%, to $90.

 

In Europe, FTSE and DAX fell 0.6% each while CAC slipped 0.8%.

 

AT HOME

 

Benchmark indices fell a third of a percent each, snapping a 4-day winning streak. Sensex settled at 60906, down 215 points while Nifty lost 62 points to finish at 18082. Nifty mid-cap and small-cap indices fell 0.1% each. Nifty PSU Bank and Realty indices were the top losers among sectoral indices, down 0.8% each while Media and Metal indices were the top gainers, up 0.8% and 0.6% respectively.

 

FIIs net bought stocks worth Rs 1436 cr but net sold index futures and stock futures worth Rs 629 cr and 1224 cr respectively. DIIs were net sellers to the tune of Rs 1378 cr.

 

Rupee depreciated 9 paise to end at 82.79/$.

 

OUTLOOK

 

Today morning, Hang Seng is down nearly 2% while Shanghai and Nikkei are off 0.2% and 0.1% respectively. SGX Nifty is suggesting arond 140 points lower start for our market.

 

In yesterday's report we had said that 18350, the calendar 2022 top made in January, continued to be next upside level to eye and that immediate support on the hourly chart had moved up to 17800, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 18178 in the initial trade, slipped to end at 18082. The benchmark is set to open below 18000 today.

 

18350, the calendar 2022 top made in January, continues to be next upside level to eye; 17850-17800 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 41840, the all-time high made in September, is the immediate hurdle, upon crossover of which, 42200 would be next upside level to eye; 40800 continues to be immediate support on the hourly chart, below which, 34-DMA, placed around 40000, would be next support.

 

HDFC, Hero Motocorp and Adani Enterprises will report their quarterly earnings today.