16747 IS THE NEXT SUPPORT; 17255 IMMEDIATE HURDLE

 

16747 IS THE NEXT SUPPORT; 17255 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.7%-1.2% on Friday as sell-off resumed in First Republic and other bank shares amid lingering concerns over the state of the U.S. banking sector.

 

First Republic slid nearly 33% to end the week down close to 72%. U.S.-listed shares of Credit Suisse closed down nearly 7%, taking the weekly cut to 24%.

 

The University of Michigan’s survey of consumer sentiment fell for the first time in four months even as readings on inflation expectations receded. Preliminary results on economic conditions and consumer expectations also slid.

 

US 10-year treasury yield fell 15 bps to 3.436%. Dollar index fell 0.6% to 103.86. Gold surged 3.5% to $1988 per ounce.

 

Brent as well as WTI crude futures fell 2.1% each to $73.11 a barrel and $66.92 respectively.

 

European markets fell 1%-1.4%.

For the week, Dow finished 0.2% down but S & P 500 and Nasdaq rose 1.4% and 4.4% respectively, with Nasdaq notching it's best week since Jan. 13. European markets fell 4%-5.3%, posting their worst week of 2023.

 

US 2-year yield fell 75 bps to 3.848% while 10-year yield dipped 27 bps to 3.436%. Dollar index fell 0.7% to 103.86. Gold surged 6.5% to $1988 per ounce. Brent and WTI crude plunged 12.3% and 13.6% respectively for their worst week since March 2022 and April 2020 respectively. 

 

AT HOME

 

Benchmark indices rose nearly two third of a percent each, building on yesterday's recovery from lower levels. Sensex settled at 57989, up 355 points while Nifty added 114 points to finish at 17100. Nifty mid-cap and small-cap indices rose 0.3% and 0.7% respectively. Nifty Realty and Metal indices surged 3% and 2.4% respectively, becoming top gainers among the sectoral indices while Pharma index was the top loser, down 0.6%, followed by 0.5% lower Healthcare and Auto indices.

 

FIIs net sold stocks and index futures worth Rs 1767 cr and 692 cr respectively but net bought stock futures worth Rs 264 cr. DIIs were net buyers to the tune of Rs 1817 cr.

 

Rupee appreciated 18 paise to end at 82.55/$.

 

For the week, Sensex and Nifty fell 1.9% and 1.8% respectively, extending last week's nearly 1% cut.

 

OUTLOOK

 

UBS agreed to buy its banking rival Credit Suisse in a $3.2 billion takeover over the weekend.

 

Today morning, Hang Seng and Nikkei are down 1.4% and 0.8% respectively while Shanghai is up 0.4%. SGX Nifty is suggesting around 100 points lower start for our market.

 

In Friday's report we had said that 16747, the bottom made in September 2022, continued to be next downside level to eye while 17260 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts could be held on to.

 

Nifty touched a high of 17145 before closing at 17100 and is set to open near 17000 today.

 

16747, the bottom made in September 2022, continues to be next important support; 17255 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts could be held on to.

 

For Banknifty, 20-month moving average, placed around 38150 is the next downside level to eye; 40000 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.