34-DMA HURDLE AT 17940; 17650-17600 CONTINUES TO BE SUPPORT AREA

 

34-DMA HURDLE AT 17940; 17650-17600 CONTINUES TO BE SUPPORT AREA

 

WORLD MARKETS

 

After a positive start, US indices saw a sustained downward move to end with cuts of 0.7%-1% as weakness in Alphabet and Meta dragged on the indices.

 

Jobless claims for the week ended Feb. 4 jumped 13,000 to 196,000 as against the expected figure of 190,000.

 

US 10-year treasury yield rose 5 bps to 3.664%. Dollar index fell 0.3% to 103.19. Gold fell 0.8% to $1861 per ounce.

 

Brent crude settled 0.7% lower at $84.50 a barrel, and WTI fell half a percent to $78.06 a barrel.

 

European markets gained 0.3%-1.3%.

 

AT HOME

 

After falling half a percent in the initial trade, benchmark indices rebounded to end modestly higher. Sensex settled at 60806, up 142 points while Nifty added 22 points to finish at 17893. Nifty mid-cap and small-cap indices ended little changed. Nifty IT and Media indices were the top gainers among the sectoral indices, up 0.7% and 0.6% respectively while Metal index tumbled 1.6%, becoming top loser, followed by 0.6% lower Realty index.

 

FIIs net sold stocks worth Rs 145 cr but net bought index futures worth Rs 104 cr. In stock futures net figure was zero. DIIs were net sellers to the tune of Rs 205 cr.

 

Rupee depreciated 2 paise to end at 82.51/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.7% but Hang Seng and Shanghai are down 0.5% and 0.1% respectively. SGX Nifty is suggesting around 100 points lower start for our market.

 

In yesterday's report we had said that 17870-17970 continued to be immediate resistance zone for Nifty, while 17650-17600 continued to be immediate support zone on the hourly chart.

 

Nifty, after touching a low of 17779, rebounded to end at 17893, but is set to open near 17800 today.

 

17650-17600 continues to be immediate support zone on the hourly chart; 34-DMA, placed around 17940, is the important immediate hurdle, upon crossover of which, 18201, the top made on 24th January, would be next upside target.

 

For Banknifty, 42015, the top made on Budget day, continues to be upside level to eye; On the way down, 40700-40600 is the immediate support area, below which, 39420, the low made last week, would be bigger support to eye.