21515 CONTINUES TO BE IMMEIDATE SUPPORT; 21930 IMMEDIATE HURDLE

 

21515 CONTINUES TO BE IMMEIDATE SUPPORT; 21930 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 tumbled 1.4% each while Nasdaq nosedived 1.8% after hotter-than-expected inflation data for January spiked Treasury yields.

 

The consumer price index rose 0.3% month-on-month and 3.1% on an annual basis, higher than the expected rise of 0.2% and 2.9% respectively. Core prices, which exclude volatile food and energy components, rose 0.4% month over month and 3.9% from a year ago, against expected figures of 0.3% and 3.7% respectively.

 

U.S. 10-year treasury yield jumped 13 bps to 4.318%. Dollar index climbed 0.7% to 104.86, its highest level in 3-months. Gold tumbled 1.3% to $1993 per ounce.

 

WTI crude futures rose 1.2% to $77.87 a barrel and Brent settled at $82.77 a barrel, up 0.9%.

 

European markets fell 0.6%-1%.

 

AT HOME

 

After falling a third of a percent in the initial trade, benchmark indices surged nearly a percent from the bottom of the day to end higher by about two third of a percent. Sensex settled at 71555, up 482 points while Nifty added 127 points to finish at 21743. Nifty mid-cap and small-cap indices gained 0.3% and 0.2% respectively. Except 2.1% and 0.03% lower Metal and Media indices respectively, all the NSE sectoral indices ended higher with Financial Services and Bank indices on the top, up 1.6% and 1.4% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 376 cr, 345 cr and 2508 cr respectively. DIIs were net buyers to the tune of Rs 274 cr.

 

Rupee ended flat at 83/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are down 0.8% and 0.5% respectively while GIFT Nifty is suggesting around 180 points gap-down start for our market.

 

In yesterday's report we had said that 21515 the 61.8% retracement levels of the recent 21137-22126 upmove, was the next downside levels to eye while a trendline adjoining recent tops on hourly charts presented resistance around 21950.

 

Nifty, after touching a low of 21543, rebounded to end at 21743. The benchmark is set to open below 21600 today.

 

21515 and 21350, the 61.8% and 78.6% retracement levels of the recent 21137-22126 upmove, continue to be downside levels to eye; 21930, around which a trendline adjoining recent tops on the hourly chart is placed, is the immediate resistance to eye.

 

For Banknifty, 44429, the low made in January, is the downside level to eye; 45750 is the immediate hurdle, upon crossover of which, 46000-46100 would be next target area.

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