17720 IS THE NEXT SUPPORT; 17950-18000 IS THE RESISTANCE ZONE

 

17720 IS THE NEXT SUPPORT; 17950-18000 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

US indices nosedived 2%-2.5% as bond yield surged and the latest batch of retail earnings raised concerns about the state of the consumer.

 

S & P Global's flash US Composite PMI unexpectedly rebounded to an eight-month high of 50.2 from a final reading of 46.8 in January.  U.S. existing home sales fell 0.7% to 4 million units in January, reaching their lowest level in more than 12 years.

 

Home Depot tumbled 7% after posting weaker-than-expected revenue for the fourth quarter. The company also issued a muted outlook.

 

US 10-year treasury yield jumped 11 bps to 3.956%. Dollar index rose 0.4% to $104.17. Gold fell 0.3% to $1835 per ounce.

 

Brent futures fell 1.5% to $82.78 a barrel and WTI fell 0.4% to $76.05.

 

European markets fell 0.4%-0.7%.

 

AT HOME

 

Benchmark indices ended marginally lower after a rangebound buy choppy session, extending the losing streak to third consecutive day. Sensex settled at 60672, down 19 points while Nifty lost 18 points to finish at 17826. Nifty mid-cap and small-cap indices fell 0.4% each. Except a marginally higher FMCG, Financial Services and Consumer Durables indices, all the NSE sectoral indices ended lower, with PSU Bank and Realty indices being the top losers, down 1.8% and 1.2% respectively.

 

FIIs net bought stocks, index futures and stock futurs worth Rs 526 cr, 966 cr and 406 cr respectively. DIIs were net sellers to the tune of Rs 235 cr.

 

Rupee depreciated 7 paise to end at 82.79/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-1.5% and SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 17720, the bottom made last week, is the next downside levels to eye while 18004, the top made Monday, was the immediate hurdle.

 

Nifty, after touching a high of 17925 in the initial trade, slipped to 17800 before closing at 17826. The benchmark is set to open below 17800 today.

 

17720, the bottom made last week, continues to be next downside level to eye; 17950-18000 is the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 40000 is the next support; 41300-41400 is the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.