BREAKOUT ABOVE 17954; 17750-17700 IS THE SUPPORT AREA

 

BREAKOUT ABOVE 17954; 17750-17700 IS THE SUPPORT AREA

 

WORLD MARKETS

 

Dow fell half a percent, S & P 500 was little changed while Nasdaq ended higher by 0.6% after digesting inflation data that came in hotter-than-expected.

 

U.S. CPI rose 0.5% month-on-month and 6.4% y-o-y in January, higher than the expected increases of 0.4% and 6.2% respectively. Core CPI increased 0.4% monthly and 5.6% from a year ago, against respective estimates of 0.3% and 5.5%.

 

US 10-year treasury yield rose 4 bps to 3.747%. Dollar index was little changed at 103.27. Gold too was flat at $1854 per ounce.

 

Brent as well as WTI futures fell 1.1% each to $85.65 and $79.27 a barrel respectively.

 

In Europe, FTSE and CAC inched up 0.1% each but DAX eased 0.1%.

 

AT HOME

 

Sensex and Nifty jumped 1% and 0.9% respectively to close at the highest level after 18th January and 24th January respectively. Sensex settled at 61032, up 600 points while Nifty added 159 points to finish at 17930. Nifty mid-cap and small-cap indices however fell 0.3% and 0.4% respectively. PSU Bank, FMCG, Metal and IT indices all gained 1% each, becoming top gainers among the sectoral indices, while Realty index tumbled 1.8% to become top loser, followed by 0.4% lower Auto index. 

 

FIIs net bought stocks, index futures and stock futures worth Rs 1305 cr, 3774 cr and 1994 cr respectively. DIIs were net buyers to the tune of Rs 205 cr.

 

Rupee depreciated 4 paise to end at 82.76/$.

 

India's January WPI inflation fell to 4.73% Vs 4.95% in the previous month and hit the lowest level in 2 years. Core WPI fell to 2.8% from 3.2%.

 

OUTLOOK

 

Today morning, Hang Seng is down 1.5% while Shanghai and Nikkei are off 0.2% and 0.1% respectively. SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that 17972, the top made on the Budget Day, around which 34-DMA was also placed, continued to be important immediate hurdle while 17650 was the immediate support on the hourly chart

 

Nifty soared to touch a high of 17954 before closing at 17930.

 

Nity yesterday closed exactly at it's 34-DMA. A crossover of yesterday's high, 17954, would confirm a breakout, paving the way for 18200, the top made on 24th January; 17750-17700 is the immediate support zone, with the stop-loss of which, trading longs can be initiated once 17954 is crossed.

 

For Banknifty, 42015, the top made on the Budget Day, which also coincides with 34-DMA, continues to be 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, 41100 is the immediate support on the hourly chart.