17761 BELOW 17846; 18100 IS IMMEDIATE HURDLE

 

17761 BELOW 17846; 18100 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 were little changed while Nasdaq fell 0.2% on Wednesday. Yesterday, US indices gained 0.6%-1.8% after U.S. economy grew more than expected.

 

US economy expanded at an annualized rate of 2.9% during the fourth quarter, down from 3.2% pace in third quarter, but higher than the expected 2.6% rate. Initial claims for state unemployment benefits dropped 6,000 to a seasonally adjusted 186,000 for the week ended Jan. 21.

 

US 10-year treasury yield rose 5 bps to 3.502%. Dollar index rose 0.2% to 101.82. Gold fell 0.9% to $1929 per ounce.

 

Brent futures rose 1.6% to settle at $87.47 a barrel and WTI crude rose 1.1% to $81.01.

 

European markets rose 0.2%-1.3%.

 

AT HOME

 

Benchmark indices plunged a percent and quarter, their worst cut since 23rd December, 2022. Sensex settled at 60205, down 773 points while Nifty lost 226 points to finish at 17891. Nifty mid-cap and small-cap indices nosedived 1.5% and 1.2% respectively to close at the lowest level after 23rd December, 2022. Except 0.1% higher Metal index, all the BSE sectoral indices ended in red, with Services and Utilities indices being the top losers, down 2.9% each, followed by 2.7% lower Power index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2395 cr, 3616 cr and 569 cr respectively. DIIs were net buyers to the tune of Rs 1378 cr.

 

Rupee appreciated 13 paise to end at 81.59/$.

 

OUTLOOK

 

Shanghai continues to be shut for lunar New Year holiday. Nikkei is flat while Hang Seng is down 0.3%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In Wednesday's report we had said that 18201 was the immediate hurdle while 18016 was the immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty broke 18016 and plunged all the way to 17846 before closing at 17891.

 

17846, the low made Wednesday, also coincides with the 78.6% retracement level of the recent 17761-18201 upmove, and hence is the immediate support to eye, Below 17846, 17761, the bottom made on 12th January, would be next support; 18100 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, below Wednesday's low of 41540, next support to eye would be 40819, the bottom made in November; 42500 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.