NIFTY TESTS 21500 SUPPORT; 21650 IS THE IMMEDIATE HURDLE

 

NIFTY TESTS 21500 SUPPORT; 21650 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices surged 0.6%-2.2% with Nasdaq on the top as technology stocks bounced back from recent sell-off.

 

Nvidia surged 6.4% to reach an all-time high. Boeing tempered the Dow’s gains, falling 8%, following the temporary grounding of dozens of Boeing 737 Max 9 aircraft for inspections, after a section of an Alaska Airlines fuselage blew out.

 

Oil prices tumbled after Saudi Aramco on Sunday sharply lowered the price of Arab Light Crude to Asian customers by $2 per barrel. U.S. 10-year treasury yield fell 2 bps to 4.032%. Dollar index fell 0.2% to 102.28. Gold fell 0.9% to $2028 per ounce.

 

WTI crude February contract plunged 4.1% to settle at $70.77 a barrel and Brent futures contract for March fell 3.4% to settle at $76.12 a barrel.

 

European markets gained 0.1%-0.7%.

 

AT HOME

 

Benchmark indices tumbled nine tenth of a percent each for their worst day in 3-weeks. Sensex settled at 71355, down 670 points while Nifty lost 198 points to finish at 21513. Nifty mid-cap and small-cap indices fell 1.1% and 0.6% respectively. Except 0.1% higher Realty and Media indices, all the NSE sectoral indices ended in red, with PSU Bank and FMCG indices being the top losers, down 2.5% and 1.7% respectively.

 

FIIs net bought stocks worth Rs 16 cr but net sold index futures and stock futures worth Rs 1419 cr and 2754 cr respectively. DIIs were net buyers to the tune of Rs 157 cr.

 

Rupee appreciated 1 paise to end at 83.14/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-1.2% and GIFT Nifty is suggesting more than 100 points gap-up start for our market.

 

In yesterday's report we had said that 21760, the 78.6% retracement level of the recent 21834-21500 fall, is the immediate hurdle while 21500, the low made last week, which coincided with the 38.2% retracement level of the 20976-21834 upmove seen since 21st December, is the immediate support.

 

Nifty, after touching a high of 21834, reversed and plunged all the way to 21492 before closing at 21513. The benchmark is set to open near 21600 today.

 

21625-21650 is the immediate resistance zone for Nifty, upon crossover of which, 21763, the top made yesterday, would be next upside level to eye; 21492, the low made yesterday, is the immediate support, upon breach of which, hurdle, with the stop-loss of which, 21400, followed by 21300, the 50% and 61.8% retracement levels of the recent 48636-47481 fall, are the next downside levels to eye.

 

For Banknifty, 47387, the low made yesterday, coincided with a trendline adjoining recent bottoms and hence is the immediate support to eye, upon breach of which, 34-DMA, placed around 46700, would be next downside level to eye; 48000 is the immediate hurdle.

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