21820 NEXT SUPPORT; 22125 IMMEDIATE HURDLE

 

21820 NEXT SUPPORT; 22125 IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.1%-0.6% ahead of Thursday’s personal consumer expenditures reading for January, which is Federal Reserve’s favored inflation gauge.

 

According to revised gross domestic product numbers, U.S. fourth quarter GDP rose at a 3.2% annualized rate adjusted for seasonality and inflation, 0.1% point lower than the initial estimate.

 

U.S. 10-year treasury yield fell 4 bps to 4.266%. Dollar index inched up 0.1% to 103.91. Gold rose 0.2% to $2034 per ounce.

 

WTI crude futures dropped 0.4% to settle at $78.54 a barrel and Brent futures gained 0.04% to $83.68 a barrel.

 

In Europe, FTSE fell 0.8% while DAX and CAC rose 0.25% and 0.1% respectively.

 

AT HOME

 

Sensex and Nifty nosedived 1.1% each, suffering worst cut since 30th January and 23rd January respectively. Sensex settled at 72304, down 790 points while Nifty lost 247 points to finish at 21951. Both closed at the lowest level after 15th January. Nifty mid-cap and small-cap indices tumbled 1.9% each. All the NSE sectoral indices ended in red, with Media and PSU Bank indices being the top losers, down 3.5% and 2.3% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1879 cr, 243 cr and 635 cr respectively. DIIs were net buyers to the tune of Rs 1827 cr.

 

Rupee depreciated 2 paise to end at 82.92/$.

 

Shriram Finance will replace UPL in Nifty from March 28.

 

OUTLOOK

 

Today morning, Shanghai and Hang Seng are up 0.8% and 0.1% respectively while Nikkei is down 0.6%. GIFT Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 22297 continued to be immediate hurdle while 22000 continued to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

Nifty broke 22000 and plunged all the way to 21915 before closing at 21951.

 

34-DMA, placed around 21820, is the next downside level to eye, upon breach of which, 21700, the 78.6% retracement level of the recent 21530-22297 upmove, would be next support; On the way up, 22125 is the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 45676, followed by 45218, the 61.8% and 78.6% retracement levels of the recent 44633-47363 upmove, are the next downside levels to eye; 46600 is the immediate hurdle.

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