21650-21600 IS THE SUPPORT AREA; 22126 IS IMMEDIATE HURDLE

 

21650-21600 IS THE SUPPORT AREA; 22126 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.2%-0.7% as Treasury yields spiked higher.

 

In an interview on Sunday, Fed Chair Powell said the central bank would likely move at a considerably slower pace on rate cuts than the market expects.

 

U.S. services sector expanded at a faster-than-expected clip in January and grew for 13th consecutive month.

 

U.S. 10-year treasury yield jumped 14 bps to 4.16%. Dollar index rose half a percent to 104.45. Gold fell 0.7% to $2025 per ounce.

 

WTI crude future rose 0.7% to settle at $72.78 a barrel and Brent future gained 0.8% to settle at $77.99 a barrel.

 

Main European markets ended marginally in the red. German exports fell more than expected in December due to weak global demand.

 

AT HOME

 

After rising half a percent, benchmark indices tumbled in late noon trade to end lower by nearly half a percent. Sensex settled at 71731, down 354 points while Nifty lost 82 points to finish at 21771. Nifty mid-cap index fell 0.1% while small-cap index rose 0.3%. Nifty Pharma and Healthcare indices rose 1.8% and 1.5% respectively, becoming top gainers among the sectoral indices while Consumer Durables and FMCG indices were the top losers, down 1.2% and 0.8% respectively.

 

FIIs net bought stocks and index futures worth Rs 519 cr and 1308 cr respectively but net sold stock futures worth Rs 524 cr. DIIs were net sellers to the tune of Rs 1189 cr.

 

Rupee depreciated 14 paise to end at 83.06/$.

 

Bharti Airtel delivered a healthy third quarter. Revenue was in-line with estimate while margin was a beat. It added 3.3 mn subscribers in the quarter gone by.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 1.5% and 0.5% respectively while Nikkei is down half a percent. GIFT Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 22126, the record high made on Friday, which roughly coincided with the earlier top made in mid-January, was the immediate hurdle while 21625 was the immediate support.

 

Nifty, after touching a high of 21964, slipped to end at 21771.

 

20 and 34-DMAs are placed around 21650 and 21600 respectively, making 21650-21600 important immediate support area; 22126, the top made last week, continues to be immediate hurdle.

 

For Banknifty, 45615, the low made yesterday, is the immediate support, upon breach of which, 45071, the low made last the week, would be next downside level to eye; 34-DMA, placed around 47000, is the immediate hurdle.

 

Britannia will report its quarterly earnings today.

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