16747 IS NEXT SUPPORT; 17280 IMMEDIATE HURDLE

 

16747 IS NEXT SUPPORT; 17280 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.8% and 0.7% respectively on concern over banking crisis spreading to Europe. Nasdaq managed to end marginally in the green.

 

Credit Suisse shares nosedived 24% and took other bank shares lower, after the bank’s biggest lender, Saudi National Bank, said it would not be able to offer it more financial help.

 

European markets nosedived 3.3%-4.6%.

 

U.S. producer price index fell 0.1% in February from the prior month as against expectation of a gain of 0.3%. The index increased 4.6% y-o-y, down from the revised 5.7% growth in January.

 

US 10-year treasury yield tumbled 23 bps to 3.459%. Dollar index jumped 1% to 104.74. Gold rose 0.8% to $1918 per ounce.

 

Oil prices tumbled to their lowest level since December 2021 on fears that a brewing banking crisis could dent global economic growth. WTI crude futures fell more than 5% to settle at $67.61 per barrel and Brent crude slid 4% to $74.36 per barrel.

 

AT HOME

 

After rising a percent in the initial trade, Sensex and Nifty saw a sustained downward move through the session to end lower by 0.6% and 0.4% respectively, extending the losing streak to fifth consecutive day. Sensex settled at 57555, down 344 points while Nifty lost 71 points to finish at 16972. Nifty mid-cap and small-cap indices however managed to end higher by 0.1% and 0.4% respectively. Nifty Media and PSU Bank indices were the top losers among the sectoral indices, down 1.2% each while Metal index climbed 1.8%, becoming top gainer, followed by 0.8% higher Consumer Durables index.

 

FIIs net sold stocks worth Rs 1271 cr but net bought index futures and stock futures worth Rs 82 cr and 256 cr respectively. DIIs were net buyers to the tune of Rs 1824 cr.

 

Rupee depreciated 11 paise to end at 82.60/$.

 

India's February trade deficit fell to 18-month low of $17.4 bn.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-1.9% but SGX Nifty is suggesting around 35 points higher start for our market.

 

In yesterday's report we had said that 16987, the bottom made Tuesday, which coincided with the downward sloping trendline adjoining bottoms made since 21st November, 2022, was the immediate support while 17450 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts could be held on to.

 

Nifty, after touching a high of 17211 in the initial trade, reversed and plunged all the way to 16938 before closing at 16972.

 

16747, the bottom made in September 2022, is the next downside level to eye; 17280 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 38800, the 78.6% retracement level of the upmove seen from September bottom, is next support, below which, 20-month moving average, placed around 38150 would be next downside level to eye; 40100 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.