17972 IS IMMEDIATE HURDLE; 17300-17200 IMPORTANT SUPPORT AREA

 

17972 IS IMMEDIATE HURDLE; 17300-17200 IMPORTANT SUPPORT AREA

 

WORLD MARKETS

 

Dow was flat but S & P 500 and Nasdaq jumped 1% and 2% respectively after Fed delivered a smaller rate hike of 25 bps and Fed Chairman Jerome Powell acknowledged inflation is falling.

 

Data from ADP showed U.S. private payrolls rose by 106,000 last month, far less than expected. ISM manufacturing PMI for January came in at 47.4%, below the 48.4% reading for December and less than the 48% estimate.

 

US 10-year treasury yield fell 9 bps to 3.42%. Dollar index dipped 0.9% to 101.17, it's lowest level in 9-months. Gold jumped 1.1% to $1950 per ounce.

 

Oil plunged after U.S. government data showed big builds in crude oil, gasoline and distillate inventories and OPEC and its allies stuck to their output policy. Brent as well as WTI crude futures settled down 3.1% at $82.84 and $76.41 a barrel respectively.

 

In Europe, FTSE and CAC fell 0.1% each but DAX rose 0.4%.

 

AT HOME

 

After rising 1.8% as budget was getting announced, benchmark indices nosedived 3.4% from the top post 1 pm and then rebounded a percent and half in last half an hour to end with modest changes. Sensex settled at 59708, up 158 points while Nifty ended lower by 45 points at 17616. Nifty mid-cap and small-cap indices fell 0.9% and 1.2% respectively. Except 1.1% and 0.9% higher FMCG and IT indices respectively, all the NSE sectoral indices ended lower, with PSU Bank and Metal indices leading the losses, down 5.7% and 4.5% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1785 cr, 798 cr and 244 cr respectively. DIIs were net buyers to the tune of Rs 529 cr.

 

Rupee ended flat at 81.92/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.1%-0.7% but SGX Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 17300-17200 continued to be next support area for Nifty while 17900 continued to be immediate hurdle on the hourly chart, above which, 18200, the top made last week, would be the next resistance to eye.

 

Nifty, after touching a high of 17972, plunged all the way to 17353 before closing at 17616.

 

17972, the top made yesterday, around which 34-DMA is also placed, is the important immediate hurdle, a crossover of which is required for a fresh upmove. On the way down, 17300-17200 continues to be important support area, as 17300 is where 200-DMA is placed while 17200 is the 78.6% retracement level of the 16747-18887 upmove.

 

For Banknifty, 39500-39400 is immediate support zone, below which, 200-DMA, placed around 38800, would be next downside level to eye; 42015, the top made yesterday, is immediate hurdle.