18135 ABOVE 17863; 17700-17650 IS THE SUPPORT AREA

 

18135 ABOVE 17863; 17700-17650 IS THE SUPPORT AREA

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.7% and 0.4% respectively but Nasdaq rose half a percent as worries over First Republic overshadowed excitement around Big Tech earnings.

 

First Republic Bank slid 30%, extending losses after falling almost 50% on Tuesday after a report said the U.S. government was unwilling to intervene in the rescue process for the troubled lender. Microsoft shares jumped more than 7%, buoyed by an earnings beat.

 

New orders for key U.S.-manufactured capital goods fell more than expected last month, the Commerce Department said.

 

US 10-year treasury yield rose 5 bps to 3.45%. Dollar index fell 0.4% to 101.45. Gold fell 0.3% to $1990 per ounce.

 

Brent crude settled at $77.69 a barrel, losing 3.8% and WTI crude settled at $74.30, shedding 3.6%.

 

In Europe, FTSE and DAX fell half a percent each while CAC slipped 0.9%.

 

AT HOME

 

After falling three tenth of a percent in the initial trade, benchmark indices reversed these losses through the session to end higher by three tenth of a percent. Sensex settled at 60300, up 170 points while Nifty added 44 points to finish at 17813. Nifty mid-cap and small-cap indices rose 0.2% and 0.5% respectively. Nifty Realty and FMCG indices gained 1.4% and 0.7% respectively, becoming top gainers among the sectoral indices while Metal index was the top loser, down 0.4%, followed by 0.03% lower Oil & Gas and Healthcare indices.

 

FIIs net bought stocks and index futures worth Rs 1257 cr and 54 cr respectively but net sold stock futures worth Rs 796 cr. DIIs were net sellers to the tune of Rs 228 cr.

 

Rupee appreciated 15 paise to end at 81.77/$.

 

Bajaj Finance posted steady fourth quarter results with healthy return rations even as interest margins contracted on expected lines. HDFC Life posted in line set of earnings but FY24 commentary was cautious. SBI Life, helped by VNB margin expansion, put up a strong show.

 

OUTLOOK

 

Today morning, Shanghai is flat while Hang Seng and Nikkei are down 0.4% and 0.3% respectively. SGX Nifty is suggesting around 20 points lower start for our market.

 

In yesterday's report we had said that 17863, the top made last week, continued to be next upside target, while 17650 was the immediate support on hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a low of 17711, rebounded to end at 17813.

 

17863, the top made last week, continues to be next upside target, upon crossover of which, 18135, the top made in February, would be next level to eye; 17700-17650 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43000-43100 is the next target area; 42300 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Axis Bank, HUL, Wipro and Tech Mahindra will report their quarterly earnings today.