17972 CONTINUES TO BE HURDLE; 17650-17600 CONTINUES TO BE SUPPORT AREA

 

17972 CONTINUES TO BE HURDLE; 17650-17600 CONTINUES TO BE SUPPORT AREA

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.5% and 0.2% respectively but Nasdaq ended lower by 0.6% on Friday.

 

US 10-year treasury yield rose 8 bps to 3.742%. Dollar index rose 0.4% to 103.58. Gold rose 0.2% to $1865 per ounce.

 

Brent April futures rose 2.2% to settle at $86.39 a barrel, and WTI futures rose 2.1% to $79.72 a barrel.

 

European markets fell 0.4%-1.4%. U.K. preliminary fourth-quarter GDP figures showed that the economy flat lined in the fourth quarter to narrowly avoid recession, in line with forecasts.

 

For the week, the Dow eased 0.2%. The S&P 500 and Nasdaq fell 1.1% and 2.4% respectively, marking their biggest weekly losses since December.

 

AT HOME

 

Benchmark indices ended lower by a fifth of a percent after a rangebound session, snapping a 2-day winning streak. Sensex settled at 60682, down 123 points while Nifty lost 37 points to finish at 17856. Nifty mid-cap and small-cap indices however gained 0.2% and 0.5% respectively. Nifty Metal index tumbled 1.8%, becoming top loser among the sectoral indices, followed by 0.6% lower Oil & Gas index. Realty index jumped 1.4% to become top gainer, followed by 0.4% higher PSU Bank, Media and Auto indices.

 

FIIs net bought stocks worth Rs 1458 cr but net sold index futures and stock futures worth Rs 921 cr and 587 cr respectively. DIIs were net sellers to the tune of Rs 291 cr.

 

Rupee appreciated 1 paise to end at 82.50/$.

 

For the week, Sensex fell 0.3% but Nifty ended flat.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 1.2% and 0.9% respectively while Shanghai is up 0.3%. SGX Nifty is suggesting around 30 points lower start for our market.

 

In Friday's report we had said that 17650-17600 continued to be immediate support zone on the hourly chart while 34-DMA, placed around 17940, was the important immediate hurdle.

 

Nifty fell to close at 17856.

 

17972, the top made on the Budget Day, around which 34-DMA is also placed, continues to be important immediate hurdle, upon crossover of which, 18201, the top made on 24th January, would be next upside target. 17650-17600 continues to be immediate support area, below which, below which, 17353, the low made last week, would be next downside level to eye.

 

42015, the top made on the Budget Day, which also coincides with 34-DMA, is the important immediate hurdle, upon crossover of which, 43078, the top made on 24th January, would be next upside level to eye. On the way down, 40700, is the immediate support on the hourly chart, below which, 39420, the low made on 30th January, would be crucial support to eye.