21915 IS IMMEDIATE HURDLE; 21530 IMMEDIATE SUPPORT

 

21915 IS IMMEDIATE HURDLE; 21530 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.4%-1.3%, clawing back some of the steep losses suffered in the previous session.

 

U.S. 10-year treasury yield fell 6 bps to 4.259%. Dollar index fell 0.1% to 104.71. Gold was flat at $1992 per ounce.

 

WTI crude futures fell 1.6% to $76.64 a barrel and Brent futures settled at $81.60 a barrel, down 1.4%.

 

European markets rose 0.4%-0.8%. UK inflation stood at an annual rate of 4.0% in January, unchanged from December. Eurozone GDP was flat in the last three months of 2023 against the previous quarter and up 0.1% against the same period of 2022. Euro zone employment rose 0.3% quarter-on-quarter and by 1.3% year-on-year in the fourth quarter.

 

Japan’s GDP for the fourth quarter fell 0.4% on an annualized basis, a sharp miss from the 1.4% growth expected. Singapore saw its fourth-quarter GDP grow 2.2% year on year, lower than the 2.5% expected.

 

AT HOME

 

After falling a percent at the open, benchmark indices surged nearly a percent and half to end higher by four tenth of a percent, extending the winning streak to second straight day. Sensex settled at 71833, up 277 points while Nifty added 96 points to finish at 21840. Nifty mid-cap and small-cap indices climbed 1% and 1.6% respectively. Nifty PSU Bank and Oil & Gas indices were the top gainers among the sectoral indices, up 3.2% and 3.1% respectively while IT index was the top loser, down 1.1%, followed by 0.9% lower Healthcare and Pharma indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3930 cr, 87 cr and 645 cr respectively. DIIs were net buyers to the tune of Rs 2898 cr.

 

Rupee depreciated 3 paise to end at 83/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.8% while Hang Seng is down 0.8%. GIFT Nifty is suggesting around 60 points higher start for our market.

 

In yesterday's report we had said that 21515, the 61.8% retracement level of the recent 21137-22126 upmove, was the next downside levels to eye while 21930 was the immediate hurdle.

 

Nifty, after touching a low of 21530, rebounded to end at 21840. The benchmark is set to open near 21900 today.

 

21915, around which a trendline adjoining recent tops on the hourly chart is placed, is the immediate resistance to eye, upon crossover of which, 22126, the top made on 2nd February, would be next target; 21530, the low made yesterday, is the immediate support.

 

For Banknifty, above yesterday's high, i.e. 46170, next upside target to eye would be 46900; A trendline adjoining recent bottoms lands support around 45100.

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