NIFTY RETREATS FROM 17207 HURDLE

 

NIFTY RETREATS FROM 17207 HURDLE

 

WORLD MARKETS

 

US indices rose 0.2%-1% but closed off the highs made earlier in the session which were ranging between 1.5-2.5%.

 

Treasury Secretary Janet Yellen said the administration is ready to take “additional actions if warranted” to stabilize the U.S. banking system.

 

US 10-year treasry yield was little changed at 3.432%. Dollar index was flat at 102.59. Gold rose 1.2% to $1993 per ounce.

 

Brent crude futures fell 1% to settle at $75.91 a barrel and WTI crude futures slid by 1.3% to $69.96 a barrel.

 

The Bank of England raised interest rate by 25 bps, in line with expectations, and said further tightening would be required if there were evidence of more persistent price pressures.

 

In Europe, except a marginally higher CAC, other markets saw cuts of upto 0.9%.

 

AT HOME

 

After rising three tenth of a percent, benchmark indices tumbled three fourth of a percent to end lower by nearly half a percent. Sensex settled at 57925, down 289 points while Nifty lost 75 points to finish at 17076. Nifty mid-cap and small-cap indices fell 0.4% each. Nifty PSU Bank and Realty indices were the top losers among the sectoral indices, down 1.7% and 1.1% respectively while FMCG index was the top gainer, up 0.4%, followed by 0.2% higher Pharma and Healthcare indices.

 

FIIs net sold stocks and stock futures worth Rs 995 cr and 121 cr respectively but net bought index futures worth Rs 1015 cr. DIIs were net buyers to the tune of Rs 1669 cr.

 

Rupee appreciated 39 paise to end at 82.26/$.

 

OUTLOOK

 

Today morning, Shanghai and Nikkei are modestly lower while Hang Seng is up 0.2%. SGX Nifty is suggesting around 25 points lower start for our market.

 

In yesterday's report we had said that 17207, the top made Wednesday, was the immediate hurdle.

 

Nifty, after touching a high of 17205, reversed and closed at 17077.

 

17207, the top made Wednesday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove; 16828, the low made Monday, is the immediate support.

 

For Banknifty, 39500 is the immediate support below which, 39000 would be next downside level to eye; 40200, the top made yesterday, is immediate hurdle above which, 40500 and 41000 would be next upside targets.