STAY SHORT WITH THE STOP-LOSS OF 17207

 

STAY SHORT WITH THE STOP-LOSS OF 17207

 

WORLD MARKETS

 

After starting in red on fears that the banking crisis was spilling over to Deutsche Bank, US indices recovered to end with gains of 0.3%-0.6% on Friday.

 

Deutsche Bank closed 3.1% lower, rebounding from a 7% drop earlier in the trading session as the German lender’s credit default swaps jumped. ECB President Christine Lagarde tried to ease concerns, saying euro zone banks are resilient with strong capital and liquidity positions. Lagarde said the ECB could provide liquidity if needed.

 

US 10-year treasury yield fell 5 bps to 3.38%. Dollar index rose half a percent to 103.11. Gold fell 0.8% to $1977 per ounce.

 

Brent crude fell 1.3% to $74.96 a barrel and WTI crude futures fell 1.1% to $69.22 a barrel.

 

European markets fell 1.3%-2.2%

 

For the week, US indices gained 0.4%-1.6%.

 

AT HOME

 

Sensex and Nifty slipped 0.7% and 0.8% respectively, extending yesterday's weakness. Sensex settled at 57527, down 398 points while Nifty lost 132 points to finish at 16945. Nifty mid-cap and small-cap indices tumbled 1.2% and 1.7% respectively. All the NSE sectoral indices ended lower, with Media index being the top loser, down 2.4%, followed by 2.3% lower Realty and Metal indices.

 

FIIs net sold stocks and stock futures worth Rs 1720 cr and 389 cr respectively but net bought index futures worth Rs 214 cr. DIIs were net buyers to the tune of Rs 2556 cr.

 

Rupee depreciated 22 paise to end at 82.48/$.

 

For the week, Sensex and Nifty fell 0.8% and 0.9% respectively, extending the losing streak to third consecutive week and closing at the lowest level after the week ending 30th September 2022 and 22nd July 2022 respectively.

 

OUTLOOK

 

Today morning, Nikkei is up 0.3% but Hang Seng and Shanghai are down 1.4% and 0.4% respectively. SGX Nifty is suggesting around 80 points higher start for our market.

 

In Friday's report we had said that 17207, the top made Wednesday, continued to be immediate hurdle, while 16828, the low made Monday, was the immediate support.

 

Nifty fell to 16917 before closing at 16945 and is set to open near 17000 today.

 

16828, the low made Monday, is the immediate support, upon breach of which, 16747, the low made in September 2022, would be next downside level to eye; 17207, the top made last week, is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 39000 is the immediate support on the hourly chart, upon breach of which, 38613, the low made in mid-March, would be next downside level to eye; On the way up, 40200, the top made last week, which coincided with 20-DMA, is the immediate hurdle.