17800 IS IMMEDIATE HURDLE; 17430 IMMEDIATE SUPPORT

 

17800 IS IMMEDIATE HURDLE; 17430 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 inched up 0.1% each while Nasdaq eased 0.1% on Monday.

 

Yesterday, US indices plunged 1.2%-1.7% after Fed Chair Powell, in his testimony to a congressional committee, said the Fed would likely need to increase rates more than expected in light of recent strong economic data.

 

US 2-year treasury yield surged 13 bps to5.013%, its highest level since 2007. 10-year treasury yield inched up 1 bps to 3.97%. Dollar index jumped 1.3% to 105.63. Gold plunged 1.8% to $1813 per ounce.

 

Brent crude futures plunged 3.4% to $83.29 a barrel and WTI crude futures tumbled 3.6% to $77.58 per barrel.

 

Main European markets fell 0.1%-0.6%.

 

AT HOME

 

Benchmark indices rose 0.7% each, extending Friday's mammoth upmove and closing at 2-week high. Sensex settled at 60224, up 415 points while Nifty added 117 points to finish at 17711. Nifty mid-cap and small-cap indices surged 0.8% and 1.1% respectively. Except 0.5% and 0.2% lower Realty and PSU Bank indices, all the NSE sectoral indices ended higher, with Oil & Gas and IT indices being the top gainers, up 1.9% and 1.2% respectively.

 

FIIs net bought stocks and index futures worth Rs 721 cr and 1447 cr respectively but net sold stock futures worth Rs 105 cr. DIIs were net buyers to the tune of Rs 757 cr.

 

Rupee appreciated 6 paise to end at 81.91/$.

 

OUTLOOK

 

Today morning, Hang Seng is down more than 2%, Shanghai is off half a percent but Nikkei is up 0.2%. SGX Nifty is trading around 17725, suggesting around 50 points lower start when compared to Monday's close of Nifty futures.

 

In Monday's report we had said that 20 and 34-DMAs were placed around 17700 and 17770 respectively, making 17700-17770 next target/ resistance area on the way up.

 

Nifty surged to touch a high of 17800, but slipped to end at 17711.

 

17800, the top made Monday, is the immediate hurdle, upon crossover of which, 18004, the top made last week, would be next upside level to eye; 17430 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 42000 continues to be next upside target/resistance to eye; 40600 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.