18184 IS THE IMMEDIATE HURDLE; STAY LONG WITH THE STOP-LOSS OF 17950

 

18184 IS THE IMMEDIATE HURDLE; STAY LONG WITH THE STOP-LOSS OF 17950

 

WORLD MARKETS

 

US indices surged 1%-2.6% on Friday, with the Dow and S & P 500 snapping a 3-day losing streak.

 

Netflix gained 8.5% after posting more subscribers than expected even though its quarterly earnings missed estimates. Alphabet rose more than 5% after the company announced it will lay off 12,000 employees.

 

Fed Governor Waller said he backs a quarter percentage point interest rate increase at the central bank’s next meeting. He also said he would tolerate a soft recession if it meant bringing inflation down.

 

US 10-year treasury yield rose 9 bps to 3.484%. Dollar index fell 0.1% to $101.99. Gold fell 0.3% to $1926 per ounce.

 

Brent crude rose 1.5% to $87.58 per barrel and U.S. crude gained 1.2% to settle at $81.31 a barrel.

 

European markets gained 0.3%-1.4%.

 

Data earlier showed Japan's core consumer price index rose 4% in December on an annualized basis, the fastest pace since 1981. In China, central bank left 1-year and 5-year loan prime rates unchanged.

 

For the week, Dow and S & P 500 fell 2.7% and 0.7% respectively, breaking two-week win streaks. Nasdaq however inched up 0.6% for its third positive week in a row. European markets fell 0.4%-0.9%. Asian markets did better, rising between 0.4%-2%.

 

In other asset classes, US 10-year treasury yield rose 4 bps to 3.48%, Dollar index fell 0.2% to 101.99 and Gold rose 0.3% to $1926 per ounce. WTI crude rose 1.7% and Brent advanced 2.8%.

 

AT HOME

 

Benchmark indices slipped four tenth of a percent, extending yesterday's similar cuts. Sensex settled at 60621, down 236 points while Nifty lost 80 points to finish at 18027. Nifty mid-cap and small-cap indices tumbled 0.8% and 0.6% respectively. BSE Telecommunication index tumbled 1.4%, becoming top loser among the sectoral indices, followed by 1% lower Commodities and Consumer Durables indices. Power and Utilities indices were the top gainers, up half a percent each.

 

FIIs net sold stocks worth Rs 2002 cr but net bought index futures and stock futures worth Rs 1027 cr and 1057 cr respectively. DIIs were net buyers to the tune of Rs 1510 cr.

 

Rupee appreciated 24 paise to end at 81.12/$.

 

For the week, Sensex and Nifty gained 0.6% and 0.4% respectively, extending the winning streak to second straight week.

 

OUTLOOK

 

Shanghai and Hang Seng are shut today on account of lunar New Year holiday. Nikkei is up more than a percent and SGX Nifty is suggesting around 90 points higher start for our market.

 

In Friday'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 can be held on to.

 

Nifty slipped to 18016 before closing at 18027. The benchmark is set to open near 18100 today.

 

18184, the top made last week, around which 34-DMA is also placed, is the immediate hurdle 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.

 

Axis Bank will report it's quarterly earnings today.