22000 CONTINUES TO BE IMMEDIATE SUPPORT; 22297 IMMEDIATE HURDLE

 

22000 CONTINUES TO BE IMMEDIATE SUPPORT; 22297 IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.1%-0.4%.

 

Sales of new single-family homes came in at 661,000 for the month of January, an increase of 1.5%. These was lower than the estimate for 680,000 and 2.4%, respectively.

 

U.S. 10-year treasury yield rose 3 bps to 4.283%. Dollar index fell 0.2% to 103.78. Gold fell 0.2% to $2030 per ounce.

 

Brent crude futures settled with a gain of 1.1% at $82.53 a barrel and WTI finished up 1.4% at $77.58.

 

In Europe, FTSE and CAC fell 0.3% and 0.5% respectively while DAX was flat.

 

AT HOME

 

Sensex and Nifty fell 0.5% and 0.4% respectively, starting new week on a soft note. Sensex settled at 72790, down 352 points while Nifty lost 90 points to finish at 22122. Nifty mid-cap and small-cap indices fell 0.4% and 0.3% respectively. Nifty IT index tumbled 1.2%, becoming top loser among the sectoral indices, followed by 0.9% lower Metal and Consumer Durables indices. Auto, Realty and Oil & Gas indices were the sole gainers, up 0.1% each.

 

FIIs net sold stocks worth Rs 285 cr but net bought index futures and stock futures worth Rs 531 cr and 1005 cr respectively. DIIs were net sellers to the tune of Rs 5 cr.

 

Rupee appreciated 5 paise to end at 82.89/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 0.2% each while Hang Seng is off 0.2%. GIFT Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 22297, the top made on Friday was the immediate hurdle while 22000 was the immediate support.

 

Nifty fell to 22075 before closing at 22122.

 

A trendline adjoining bottoms made on 14th and 22nd February lands support around 22000; 22297, the top made last week, continues to be immediate hurdle.

 

For Banknifty, 46400-46350 continues to be immediate support area, upon breach of which, 46000 and 45676, the 50% and 61.8% retracement levels of the recent upmove, would be next downside levels to eye; 47736, the 78.6% retracement level of the 48636-44429 fall, is the immediate target.

 

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