21667 IS NEXT SUPPORT; 22050-22100 IMMEDIATE RESISTANCE ZONE

 

21667 IS NEXT SUPPORT; 22050-22100 IMMEDIATE RESISTANCE ZONE

 

WORLD MARKETS

 

U.S. indices gained 0.4%-0.8% as the Federal Reserve kicked off its two-day policy meeting.

 

While Fed is expected to keep rates unchanged today, a recent slate of worrying inflation reports has investors concerned that it could signal interest rates will remain higher for longer than expected.

 

U.S. single-family homebuilding rebounded sharply in February, the Commerce Department reported. Ho

 

U.S. 10-year treasury yield fell 3 bps to 4.293%. Dollar index rose 0.2% to 103.82. Gold fell 0.1% to $2157 per ounce. The yen tumbled to a four-month low against the dollar after the Bank of Japan’s momentous, widely anticipated decision to end its negative interest rate policy,

 

WTI crude rose 1.3% to $83.75 a barrel, its highest since October. Brent crude rose 0.8% to $87.57 a barrel, the highest since Nov. 3.

 

European markets gained 0.2%-1%.

 

AT HOME

 

Benchmark indices nosedived 1% each to close at the lowest level after mid-February. Sensex settled at 72012, down 736 points while Nifty lost 238 points to finish at 21817. Nifty mid-cap and small-cap indices tumbled 1.2% each, with the former closing at the lowest level after 28th December 2023. All the NSE sectoral indices ended in the red, with IT and Media indices being the top losers, down 2.9% and 2.4% respectively.

 

FIIs net bought stocks and stock futures worth Rs 1421 cr and 1218 cr respectively but net sold index futures worth Rs 2143 cr.

 

Rupee depreciated 13 paise to end at 83.04/$.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 0.7% and 0.2% respectively while Hang Seng is flat. GIFT Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 21900 was the immediate support for Nifty, upon breach of which, 21831, followed by 21667, which are the 50% and 61.8% retracement levels of the 21137- 22526 upmove seen since 24th January, would be next downside levels to eye.

 

Nifty broke 21900 and plunged all the way to 21793 before closing at 21817.

 

21667, the 61.8% retracement level of the 21137- 22526 upmove seen since 24th January, is the next downside levels to eye; 22050-22100 is the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 46000, the is immediate support, upon breach of which 45661, the bottom made on 29th Feb., would be next downside level to eye. On the way up, 47000 is the immediate hurdle on the hourly chart.

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