17950 CONTINUES TO BE IMMEDIATE SUPPORT

 

17950 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.8% each while Nasdaq tumbled 1% as weak U.S. economic readings and hawkish comments from Federal Reserve officials fueled recession worries.

 

Initial Jobless claims fell to 190,000 for the week ending Jan. 14, their lowest level since late June last week.

 

US 10-year treasury yield rose 2 bps to 3.392%. Dollar index fell 0.4% to 102.05. Gold jumped 1.5% to $1932 per ounce.

 

Oil prices rose to reach their best level since December 1. Brent futures gained 1.4% to settle at $86.16 per barrel, while WTI crude futures rose 1.1% to $80.33 per barrel.

 

European markets fell 1.1%-1.9%.

 

AT HOME

 

Benchmark indices fell 0.3% each, snapping 2-day winning streak. Sensex settled at 60858, down 187 points while Nifty lost 57 points to finish at 18107. Nifty mid-cap and small-cap indices fell 0.1% and 0.5% respectively. BSE Utilities and Power indices were the top losers among the sectoral indices, down 1.2% and 1% respectively while Oil & Gas and Power Energy indices were top gainers, up 0.8% and 0.7% respectively.

 

FIIs net bought stocks worth Rs 400 cr but net sold index futures and stock futures worth Rs 383 cr and 667 cr respectively. DIIs were net sellers to the tune of Rs 129 cr.

 

Rupee depreciated 12 paise to end at 81.36/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.6% each while Nikkei is flat. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 18265, the top made on 30th December, continued to be next upside level to eye while 17950 continued to be immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty fell to 18063 and closed at 18107.

 

18265, the top made on 30th December, continues to be next upside level to eye; 17950 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 42715 continues to be immediate hurdle, upon crossover of which, 43578, the top made on 4th January, would be the next upside target to eye; 41569, the bottom made in December, is the important support.

 

Reliance Industries, JSW Steel and HDFC Life will report their quarterly earnings today.