STAY SHORT WITH THE STOP-LOSS OF 17900

 

STAY SHORT WITH THE STOP-LOSS OF 17900

 

WORLD MARKETS

 

US indices fell 0.8%-2%, bracing for the busiest week of earnings season and interest rate decision from the Federal Reserve.

 

US 10-year treasury yield rose 4 bps to 3.542%. Dollar index rose 0.3% to 102.24. Gold fell 0.2% to $1923 per ounce.

 

Brent futures fell 2% to $84.90 a barrel and WTI crude fell 2.2% to $77.90 per barrel.

 

In Europe, FTSE rose quarter of a percent but DAX and CAC fell 0.2% each.

 

AT HOME

 

After falling a percent, benchmark indices recouped all the losses and some more in late noon rebound to end higher by a third of a percent, snapping 2-day losing streak. Sensex settled at 59500, up 169 points while Nifty added 44 points to finish at 17648. Nifty mid-cap and small-cap indices fell 0.2% and 0.1% respectively. BSE Utilities and Power indices nosedived 5.7% and 5.3% respectively, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 1% and 0.9% respectively.

 

FIIs net sold stocks and index futures worth Rs 6793 cr and 1607 cr respectively but net bought stock futures worth Rs 555 cr. DIIs were net buyers to the tune of Rs 5513 cr.

 

Rupee appreciated 2 paise to end at 81.50/$.

 

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 17500-17450 was an important support area below which 17300-17200 would be next support area; We had also said that 18000 was immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

Nifty, after touching a low of 17405, rebounded to end at 17648.

 

17300-17200 is the next support area for Nifty as 17300 is where 200-DMA is placed while 17200 is the 78.6% retracement level of the 16747-18887 upmove; 17900 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 39420, the low made yesterday, is the immediate support, below which, 200-DMA, placed around 38800, would be next downside level to eye; On the way up, 41417-41540, the gap created by Friday's gap-down opening, is the immediate resistance zone.

 

Finance Minister will present Economic Survey in the Parliament today.