18209 IS IMMEDIATE SUPPORT; 18442 IMMEDIATE HURDLE

 

18209 IS IMMEDIATE SUPPORT; 18442 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.6% and 0.5% respectively while Nasdaq ended flat on Friday.

 

Boston Fed President Susan Collins expressed confidence that policymakers can tame inflation without doing too much damage to employment.

 

US 10-year treasury yield rose 6 bps to 3.83%. Dollar index inched up 0.3% to 106.97. Gold fell 0.6% to $1750 per ounce.

 

Brent crude tumbled 2.4% to $87.82 per barrel while WTI crude fell 1.9% to $80.08.

 

European markets gained 0.5%-1.2%.  U.K. announced a new fiscal strategy centered on tax hikes and spending cuts as the government looks to plug a massive hole in its public finances.

 

For the week, Dow was flat while S & P 500 and Nasdaq slipped 0.7% and 1.6% respectively. US 10-year treasury yield fell 2 bps to 3.83%. Dollar index inched up half a percent, recouping some of last week's 4% plunge. Gold fell 1.2%. Brent and WTI crude plunged nearly 9% and 10% respectively.

 

AT HOME

 

After falling seven tenth of a percent, benchmark indices recouped most of the losses in late noon surge to end just marginally lower. Sensex settled at 61663, down 87 points while Nifty fell 36 points to finish at 18307. Nifty mid-cap and small-cap indices fell half a percent each. Except 1.5% higher PSU Bank index, all the NSE sectoral indices ended in red, with Auto index leading the losses, down 1.2%, followed by 0.7% lower Pharma index.

 

FIIs net sold stocks and stock futures worth Rs 751 cr and 96 cr respectively but net bought index futures worth Rs 85 cr. DIIs were net buyers to the tune of Rs 890 cr.

 

Rupee depreciated 4 paise to end at 81.69/$.

 

For the week, Sensex and Nifty fell 0.2% each, snapping a 4-week win streak.

 

OUTLOOK

 

Today morning, Nikkei is flat while Hang Seng and Shanghai are down 2.4% and 0.9% respectively. SGX Nifty is suggesting around 70 points lower start for our market.

 

In Friday's report we had said that 18604, the all-time high made in October 2021, continues to be upside target to eye while 18250-18200 wass the immediate support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty slipped to touch a low of 18209 before closing at 18307.

 

18209, the low of the week made on Friday, is the immediate support on the hourly chart, upon breach of which, 20-DMA, placed around 18050, would be the next support; On the way up, 18442, the top made last week, is the immediate hurdle, upon crossover of which, 18604, the  all-time high made in October 2021, would be the next upside level to eye; Meanwhile, trading longs can be held on to with the stop-loss of 18209.

 

For Banknifty, 43000-43200 is the next target area. 42000 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.