NIFTY TESTS 17000 SUPPORT

 

NIFTY TESTS 17000 SUPPORT

 

WORLD MARKETS

 

US indices surged 1.1%-2.1%, with the Dow snapping a five-day losing streak, following a slightly cooler U.S. inflation report and as the fallout in the banking sector seemed to be contained.

 

U.S. CPI for February came in at 0.4% and an annualized increase of 6%, which was in line with estimates. This compared with 0.5% month-on-month and 6.4% y-o-y rise in January. core” CPI grew from the prior month slightly more than expected at 0.5%, while the y-o-y increase of 5.5% was in line with estimates.

 

US 2-year treasury yield jumped 28 bps to 4.26% and 10-year treasury yield rose 12 bps to 3.693%. Dollar index was little changed at 103.67. Gold fell half a percent to $1903 per ounce.

 

Brent futures fell 3.1% to $78.24 a barrel and WTI crude fell 3.4% to $72.32.

 

European markets climbed 1.2%-2.4%.

 

AT HOME

 

Benchmark indices slipped 0.6% each, extending the losing streak to fourth straight day. Sensex settled at 57900, down 337 points while Nifty lost 111 points to finish at 17043. Nifty mid-cap and small-cap indices fell 0.5% and 0.8% respectively. Except 0.2% higher Media and 0.01% higher Pharma indices, all the NSE sectoral indices ended in red, with PSU Bank and IT indices leading the losses, down 1.9% and 1.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3087 cr, 1480 cr and 903 cr respectively. DIIs were net buyers to the tune of Rs 2122 cr.

 

Rupee depreciated 37 paise to end at 82.49/$.

 

India's February wholesale inflation fell to 25-monht low of 3.85% from 4.73% in the previous month.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 2.3% and 0.6% respectively while Nikkei is little changed. SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 17000, around which a downward sloping trendline adjoining bottoms made since 21st November, 2022, was placed, was the next downside level to eye and that 17570 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts could be held on to.

 

Nifty plunged all the way to 16987 before closing at 17043. The benchmark is set to open near 17100 today.

 

16987, the bottom made yesterday, which coincided with the downward sloping trendline adjoining bottoms made since 21st November, 2022, is the immediate support, upon breach of which, 16747, the bottom made in September 2022, would be next downside level to eye; 17450 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 38200 would be next downside level to eye; 40700 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.