17353 IS NEXT SUPPORT; 17700 IMMEDIATE HURDLE

 

17353 IS NEXT SUPPORT; 17700 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 1% each while Nasdaq tumbled 1.7% on Friday after the Federal Reserve’s preferred inflation gauge showed a stronger-than-expected increase in prices last month.

 

The core personal consumption expenditures price index, the Fed’s preferred measurement of inflation, rose 0.6% in January and 4.7% y-o-y, coming in above expectations. The University of Michigan’s consumer sentiment index came in at 67 for February, slightly outpacing forecast of 66.4.

 

US 10-year treasury yield rose 6 bps to 3.947%. Dollar index rose 0.6% to 105.26. Gold fell 0.7% to $1810 per ounce.

 

Brent as well as WTI crude futures settled 1.2% higher at $83.16 and $76.32 a barrel respectively.

 

In Europe, FTSE fell 0.4% while DAX and CAC dipped 1.7% and 1.8% respectively. The German economy contracted by 0.4% in the fourth quarter last year, with a previous flash estimate showing a 0.2% decline.

 

For the week, US indices fell 2.7%-3.3% for their worst week in 2023.

 

AT HOME

 

Benchmark indices fell quarter of a percent, extending the losing streak to sixth straight day. Sensex settled at 59463, down 142 points while Nifty lost 45 points to finish at 17465. Sensex closed at the lowest level after 27th January while Nifty tumbled to the lowest after 17th October 2022. Nifty mid-cap and small-cap indices fell 0.2% each. Nifty Metal index tumbled 3%, becoming top loser among the sectoral indices, followed by 0.9% lower PSU Bank and Auto indices. Oil & Gas and Consumer Durables indices were the top gainers, up 0.8% and 0.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1470 cr, 260 cr and 138 cr respectively. DIIs were net buyers to the tune of Rs 1401 cr.

 

Rupee depreciated 2 paise to end at 82.75/$.

 

For the week, Sensex and Nifty fell 2.5% and 2.7% respectively, suffering the worst weekly cut after the week ended 17th June 2022.

 

OUTLOOK

 

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

 

In Friday's report we had said that 17350, the low made on budget day, was the next downside level to eye while 17850 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts could be held on to.

 

Nifty fell to 17421 before closing at 17465.

 

17353, the low made on the Budget day, where 200-DMA is also placed, is the important immediate support, below which, 17205, the 78.6% retracement level of the 16747-18887 upmove, would be next downside level to eye; On the way up, 17700 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 on 30th January, is the important immediate support, below which, 38800, the 78.6% retracement level of the 37386-44151 upmove seen after September 2022, would be next downside level to eye. If 38800 also gives way, 38000, around which 20-month moving average is placed, would be next support. On the way up, 40800 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.