NIFTY SET TO TEST 17430 SUPPORT

 

NIFTY SET TO TEST 17430 SUPPORT

 

WORLD MARKETS

 

US indices, led by bank shares, nosedived 1.7%-2%.

 

SVB Financial nosedived 60% after it announced a plan to raise more than $2 billion in capital in a bid to offset losses from bond sales.

 

Initial Jobless claims rose 21,000 to a seasonally adjusted 211,000 for the week ended March 4, higher than the forecast of 195,000 claims.

 

US 10-year treasury yield fell 9 bps to 3.909%. Dollar index fell 0.4% to 105.28. Gold rose 0.9% to $1829 per ounce.

 

Brent crude fell 1.3% to $81.59 a barrel and WTI crude fell 1.2% to settle at $75.72.

 

In Europe, FTSE and CAC fell 0.6% and 0.1% respectively while DAX was flat.

 

AT HOME

 

After a flattish start, benchmark indices saw a sustained downward move through the session to end lower by 0.9% each, snapping a 3-day winning streak. Sensex settled at 59806, down 541 points while Nifty lost 164 points to finish at 17589. Nifty mid-cap and small-cap indices fell 0.55% each, also falling for the first session in four. Except 0.1% higher Metal index, all the NSE sectoral indices ended in red, with Auto index leading the losses, down 1.8%, followed by 1.2% lower Consumer Durables and Realty indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 562 cr, 2253 cr and 2391 cr respectively. DIIs were net buyers to the tune of Rs 42 cr.

 

Rupee appreciated 8 paise to end at 81.98/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.8%-2.4% and SGX Nifty is suggesting around 150 points lower start for our market.

 

In yesterday's report we had said that 17800, the top made Monday, was the immediate hurdle while 17430 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17772 in the initial trade, plunged all the way to 17573 before closing at 17589. The benchmark is set to open near 17450 today.

 

With today's gap-down, Nifty will open very close to immediate support of 17430, upon breach of which, 17300-17250 would be next support zone; 17800 continues to be immediate hurdle.

 

For Banknifty, 41000-40800 is the immediate support area, upon breach of which, 40400 and 40000 would be next downside levels to eye; 42000 continues to be next upside target/resistance to eye.