21500-21450 IS THE IMMEDIATE SUPPORT ZONE

 

21500-21450 IS THE IMMEDIATE SUPPORT ZONE

 

WORLD MARKETS

 

Dow rose 0.4% while S & P 500 and Nasdaq fell 0.1% and 0.8% respectively ahead of latest Federal Reserve decision on interest rates.

 

Fed is expected to leave interest rates unchanged on Wednesday and markets will focus on any clues from Fed Chairman Jerome Powell on the likelihood of a rate cut in March.

 

Data yesterday showed U.S. job openings unexpectedly rose in December while U.S. consumer confidence increased to a two-year high in January.

 

The International Monetary Fund raised its 2024 growth forecast for the global economy by 0.2% to 3.1% on unexpectedly strong growth in the U.S. and stimulus in China.

 

U.S. 10-year treasury yield fell 4 bps to 4.034%. Dollar index was flat at 103.42. Gold rose 0.2% to $2037 per ounce.

 

WTI crude future rose 1.4% to $77.82 a barrel and Brent future rose 0.6% to settle at $82.87.

 

In Europe, FTSE and CAC gained half a percent each while DAX rose 0.2%. Eurozone GDP was flat in the fourth quarter against the previous three months, mainly because of strong growth in Portugal and Spain and a modest increase in Italy, while the German economy shrank in the final three months of 2023.

 

AT HOME

 

Benchmark indices tumbled a percent, giving away more than half of yesterday's mammoth gains. Sensex settled at 71140, down 801 points while Nifty lost 215 points to finish at 21522. Nifty mid-cap index fell 0.4% while small-cap index rose a fifth of a percent, extending the winning streak to fourth straight day and hit fresh record high. Nifty Consumer Durables and FMCG indices were the top losers among the sectoral indices, down 1.6% and 1% respectively while PSU Bank index was the top gainer, up 1%, followed by 0.4% higher Media and Realty indices each.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1971 cr, 228 cr and 382 cr respectively. DIIs were net buyers to the tune of Rs 1003 cr.

 

Rupee appreciated 2 paise to end at 83.11/$.

 

L & T's third quarter revenue beat estimate but margin was a significant miss. Order inflow remained strong. Dr Reddy's beat estimates led by strong U.S. sales.

 

IMF hiked India's FY24 GDP growth forecast from 6.3% to 6.7%.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.6%-1.2% and GIFT Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 21912, the 78.6% retracement levels of the recent 22124-21137 fall, was the next upside levels to eye while 21500 was the immediate support on the hourly chart.

 

Nifty, after touching a high of 21813, reversed and plunged all the way to 21501 before closing at 21522.

 

21500-21450 is the immediate support zone on the hourly chart, upon breach of which, 21137, the bottom made last week, would be next downside level to eye; 21912, the 78.6% retracement level of the recent fall from all-time high, continues to be next upside target.

 

For Banknifty, 46580, the top made last week, is the next upside level to eye; 44430, the low made last week, is the immediate support.

 

Maruti and Sun Pharma will report their quarterly earnings today.

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