17000 IS NEXT SUPPORT; 17570 IMMEDIATE HURDLE

 

17000 IS NEXT SUPPORT; 17570 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.3% and 0.2% respectively, with the Dow notching a fifth day of losses. Nasdaq however rose 0.4% on hopes that the collapse at Silicon Valley Bank could mean a pause in future interest rate hikes from the Federal Reserve.

 

US 2-year treasury yield nosedived 61 bps to 3.983% while the 10-year treasury yield fell 13 bps to 3.573%. 2-year yield has fallen around 109 bps since Wednesday, marking the largest three-day decline since Oct. 22, 1987, when the yield fell 117 bps. Dollar index tumbled 1% to 103.62. Gold jumped 2.5% to $1913 per ounce.

 

Brent futures fell 2.4% to $80.77 and WTI dropped 2.5% to $74.80 a barrel.

 

European markets fell 2.6%-3%.

 

AT HOME

 

Benchmark indices plunged a percent and half each, extending the losing streak to third straight day and closed at the lowest level after mid-October 2022. Sensex settled at 58237, down 897 points while Nifty lost 258 points to finish at 17154. Nifty mid-cap and small-cap indices nosedived 2% and 2.2% respectively. All the NSE sectoral indices ended in red, with PSU Bank and Media indices being the top losers, down 2.9% and 2.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1547 cr, 620 cr and 1586 cr respectively. DIIs were net buyers to the tune of Rs 1419 cr.

 

Rupee depreciated 8 paise to end at 82.12/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-2.3%, with Nikkei leading the losses. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 17255, the low made in February, was the important immediate support to eye while 17600-17650 was the immediate resistance zone on the hourly chart.

 

Nifty plunged all the way to 17113 before closing at 17154.

 

17000, around which a downward sloping trendline adjoining bottoms made since 21st November, 2022, is placed, is the next downside level to eye; 17570 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 39420, the bottom made in January is the immediate support, below which, 20-month moving average, placed around 38200 would be next downside level to eye; immediate hurdle on the hourly chart, upon crossover of which, 41671, the top made during the week, would be next resistance to eye.