21515 IS NEXT SUPPORT; 21950 IMMEDIATE HURDLE

 

21515 IS NEXT SUPPORT; 21950 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow rose a third of a percent to hit new high while S & P 500 and Nasdaq fell 0.1% and 0.3% respectively.

 

U.S. 10-year treasury yield rose 1 bps to 4.181%. Dollar index was little changed at 104.13. Gold fell 0.2% to $2020 per ounce.

 

WTI crude for March gained 8 cents to settle at $76.92 a barrel. The Brent contract for April fell 19 cents to $82 a barrel.

 

In Europe, FTSE was flat while DAX and CAC gained 0.6% each.

 

AT HOME

 

Benchmark indices slipped three fourth of a percent and closed at the lowest level after 30th January. Sensex settled at 71072, down 523 points while Nifty lost 166 points to finish at 21616. Nifty mid-cap and small-cap indices nosedived 2.5% and 4% respectively for their worst day since 23rd January and 12th September 2023 respectively. Nifty Media and PSU Bank plunged 4.4% each, becoming top losers among the sectoral indices while IT and Healthcare indices were the top gainers, up 0.8% and 0.5% respectively.

 

FIIs net bought stocks and stock futures worth Rs 127 cr and 1606 cr respectively but net sold index futures worth Rs 126 cr. DIIs were net buyers to the tune of Rs 1712 cr.

 

Rupee appreciated 4 paise to end at 83/$.

 

India's retail inflation fell to 5.1% in January from 5.69% in December. Core CPI fell to 3.6% from 3.88%. Industrial production grew at 3.8% in December, up from 2.4% in November.

 

OUTLOOK

 

Today morning, Nikkei is up 2% while GIFT Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 21630, the low mad on Friday, was the important immediate support while 21975 was the immediate hurdle.

 

Nifty, after making a top of 21831, plunged all the way to 21574 before closing at 21616.

 

21515 and 21350, the 61.8% and 78.6% retracement levels of the recent 21137-22126 upmove, are the next downside levels to eye; A trendline adjoining recent tops on hourly charts presents resistance around 21950.

 

For Banknifty, 44429, the low made in January, is the next support; On the way up, 45750 is the immediate hurdle.

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