17574-17863 CONTINUES TO BE IMMEDIATE RANGE

 

17574-17863 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

Dow fell 0.2% while S & P 500 and Nasdaq ended near zero line after digesting more earnings reports from names like Netflix and Morgan Stanley.

 

Netflix shares fell 3.2% after the streaming giant disappointed investors by pushing back plans to clamp down on password sharing.  Morgan Stanley rose 0.7%, but initially traded down as margins for its investment banking, wealth and asset management businesses were weaker than expected.

 

US 10-year treasury yield rose 2 bps to 3.595%. Dollar index rose 0.2% to 101.94. Gold fell half a percent to $1995 per ounce.

 

Brent futures for June delivery fell 2.0% to $83.12 a barrel and WTI for May delivery fell 2.1%, to settle at $79.16.

 

In Europe, FTSE fell 0.1% while DAX and CAC rose 0.1% and 0.2% respectively. U.K. inflation rose 10.1% y-o-y, above expectations for it to slow down to 9.8%. Monthly increase stood at 0.8%, above the forecast of 0.5% rise.

 

AT HOME

 

Benchmark indices fell nearly a fourth of a percent each, extending the losing streak to third straight day. Sensex settled at 59567, down 159 points while Nifty lost 41 points to finish at 17618. Nifty mid-cap and small-cap indices fell 0.1% each, snapping a 7-day and 11-day winning streak respectively. Nifty IT and Media indices tumbled 1.8% and 1.7% respectively, becoming top losers among the sectoral indices while Metal index was the top gainer, up 0.5%, followed by 0.2% higher Oil & Gas and Realty indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 13 cr, 292 cr and 868 cr respectively. DIIs were net sellers to the tune of Rs 110 cr.

 

Rupee depreciated 23 paise to end at 82.23/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 0.4% and 0.1% respectively but Shanghai is off 0.4%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 17574, the low made Monday, which roughly coincided with 200-DMA, continued to be immediate support, while 17863, the top made Monday, continued to be immediate hurdle.

 

Nifty fell to close at 17579 and is set to open near 17600 today.

 

17574, the low made Monday, which roughly coincided with 200-DMA, continues to be immediate support, upon breach of which, 34-DMA, placed around 17370, would be next downside level to eye; 17863, the top made Monday, continues to be immediate hurdle.

 

For Banknifty, 42600, 43000 are the upside targets to eye; 41700 is the immediate support, with the stop-loss of which, trading longs can be held on to.