17353 BELOW 17520; 17900 IS IMMEDIATE HURDLE

 

17353 BELOW 17520; 17900 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.4% and 0.3% respectively while Nasdaq inched up 0.1% after digesting minutes of the latest Fed meeting that showed central bank members are still committed to fighting inflation with rate hikes.

 

The minutes showed inflation remained “well above” the Fed’s 2% target, adding that the labor market is still “very tight, contributing to continuing upward pressures on wages and prices.”

 

US 10-year treasury yield fell 3 bps to 3.927%. Dollar index rose 0.4% to . Gold fell half a percent to $1825 per ounce.

 

Brent crude futures tumbled 2.9% to $80.67 a barrel and WTI futures dropped 3.1% to $73.99 a barrel.

 

In Europe, FTSE and CAC fell 0.6% and 0.1% respectively while DAX ended flat.

 

AT HOME

 

Sensex and Nifty nosedived 1.5% each, extending the losing streak to fourth straight day and suffering the worst cut after 23rd December and 27th January respectively. Sensex closed at the lowest level after the Budget day while Nifty registered weakest close after 19th October. Nifty mid-cap and small-cap indices fell 1.1% each. All the NSE sectoral indices ended in red, with Metal index being the top loser, down 2.6%, followed by 1.9% lower Media and PSU Bank indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 580 cr, 2732 cr and 1152 cr respectively. DIIs were net buyers to the tune of Rs 372 cr.

 

Rupee depreciated 6 paise to end at 82.85/$.

 

OUTLOOK

 

Today morning, Shanghai and Hang Seng are up 0.4% and 0.2% respectively while Nikkei is shut. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 17720, the bottom made last week, continued to be next downside level to eye and that 17950-18000 was the immediate resistance zone, with the stop-loss of which, trading shorts could be held on to.

 

Nifty plunged to 17529 before closing at 17554. The benchmark is set to open near 17600 today.

 

17520, the 78.6% retracement level of the upmove seen after budget day low, is the immediate support, upon breach of which, 17353, the low made on budget day, would be next downside level to eye; 17900 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 39900, the low made yesterday, is the immediate support below which, 39500-39400 would be next support area; 40900-41000 is the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.