17610 ABOVE 17440; 16810 IS THE SUPPORT

 

17610 ABOVE 17440; 16810 IS THE SUPPORT

 

WORLD MARKETS

 

US indices surged 1.2%-2.5% to snap a 3-day losing streak amid signs of tensions easing between Russia and Ukraine.

 

Russian Defense Ministry spokesman confirmed that military units from the southern and western districts of Russia had begun returning to their bases. However, NATO chief Jens Stoltenberg said the military alliance had not seen “any signs of de-escalation on the ground from the Russian side.”

 

US wholesale prices jumped 1% in January, bringing the y-o-y rise to 9.7% on an unadjusted basis. Core PPI, which excludes food, energy and trade services, increased 0.9% for the month, well ahead of the 0.4% estimate.

 

US 10-year treasury yield rose 5 bps to 2.049%. Dollar index fell 0.3% to 95.98. Spot gold fell 1% to $1,853 per ounce.

 

Brent crude dipped 3.3% to settle at $93.28 and WTI crude settled 3.6% lower at $92.07 per barrel.

 

European markets gained 1%-2%. Initial flash estimates showed euro zone GDP grew 0.3% in the fourth quarter for a 4.6% year-on-year increase.

 

AT HOME

 

Benchmark indices soared 3% on reports of partial pullback of Russian troops, recouping all the losses suffered in yesterday's trade. Sensex settled at 58142, up 1736 points while Nifty added 510 points to finish at 17352. This was the biggest percentage gain for both the indices after 1st February 2021. Nifty mid-cap and small-cap indices gained 2.9% and 2.5% respectively.  All the BSE sectoral indices ended in green, with Auto index and Bankex leading the tally, up 3.9% and 3.5% respectively. 

 

FIIs net sold stocks worth Rs 2299 cr but net bought index futures and stock futures worth Rs 1749 cr and 2281 cr respectively. DIIs were net buyers to the tune of Rs 4412 cr.

 

Rupee appreciated 27 paise to end at 75.33/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.7%-1.9% and SGX Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 16809, the low made Monday, which also coincided with the 200-DMA, was the immediate support while 17100-17300, the gap created by Monday's gap-down opening, would act as the resistance zone.

 

Nifty, after touching a low of 16839, reversed and surged all the way to 17375 before closing at 17352.

 

20-DMA, placed around 17440, is the next upside level to eye, upon crossover of which, 17610, where 34-DMA is placed, would be the next target;16810, the bottom made Monday, which coincided with 200-DMA, is the important support.

 

38396, the upper end of the gap created by Monday's gap-down opening, is the next upside level to eye for Banknifty, above which, 39000-39200 would be the next target zone; 36650, the low made yesterday, is the support.

 

16410 BELOW 16809; 17100-17300 IS THE RESISTANCE ZONE

 

16410 BELOW 16809; 17100-17300 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

After a choppy session, Dow and S & P 500 ended lower by 0.5% and 0.4% respectively while Nasdaq was absolutely flat. These moves came as markets monitored developments over Russia-Ukraine conflict and digested comments from Fed official.

 

US Secretary of State Blinken ordered the closing of the U.S. embassy in Kyiv, Ukraine, citing a “dramatic acceleration in the buildup of Russian forces” on Ukraine’s border.

 

St. Louis Fed President James Bullard, in a media interaction, said the Fed should “front-load” the tightening of its monetary policy.

 

US 10-year treasury yield rose nearly 7 bps to 1.989%. Dollar index rose 0.3% to 96.29. Spot gold climbed 0.6% to $1,871.71 per ounce.

 

Brent crude rose $2.04, or 2.2%, to $96.48 a barrel and WTI crude rose $2.36, or 2.5%, to settle at $95.46 a barrel.

 

European markets fell 1.7%-2.3%.

 

AT HOME

 

Benchmark indices nosedived 3%, suffering the worst cut in 10 months and closed at the lowest level after 21st December, 2021. Sensex settled at 56405, down 1747 points while Nifty lost 532 points to finish at 16842. Nifty mid-cap and small-cap indices collapsed 3.9% and 4.4% respectively and closed at the lowest level after August 2021, marking a 5-1/2 month low. All the BSE sectoral indices ended in red, with Realty and Metal indices leading the losses, down 5.2% and 5% respectively.

 

FIIs net sold stocks and index futures worth Rs 4254 cr and 253 cr respectively but net bought stock futures worth Rs 557 cr. DIIs were net buyers to the tune of Rs 2170 cr.

 

Rupee depreciated 22 paise to end at 75.60/$.

 

India's January CPI came in at 6.01% as against 5.59% in the previous month. Core CPI stood at 6% Vs 6.1%.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 0.4% and 0.1% respectively while Shanghai is up 0.2%. US futures and modestly higher and SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 17150 was the immediate support, upon breach of which, 17043, the low made last week, would be the next support. Also, in our weekly technical report, we had said that if 17043 also gives way, 16836, the low made in January, would be the downside level to eye.

 

Nifty plunged all the way to 16809 before closing at 16842, vindicating above mentioned view.

 

16809, the low made yesterday, which also coincides with the 200-DMA, is the immediate support to eye, upon breach of which, 16410, the low made in December, would be the next downside level to eye; 17100-17300, the gap created by yesterday's gap-down opening, would act as the resistance zone.

 

36400 is the next support for Banknifty; 37800, the lower end of the gap created by yesterday's gap-down opening would be the immediate hurdle to eye.

 

17150, 17043 ARE THE SUPPORTS; 17639 IS THE HURDLE

 

17150, 17043 ARE THE SUPPORTS; 17639 IS THE HURDLE

 

WORLD MARKETS

 

US indices plunged 1.4%-2.8% on Friday as the White House warned that a war in Ukraine could begin “any day now” and urged Americans there to leave “immediately.”

 

Government Bonds and Gold prices rose as investors flocked to safe-haven assets. US 10-year treasury yield dropped 10 bps to 1.92%. Dollar index rose 0.25% 96.03. Spot gold rose 1.6% to $1,855.17 per ounce.

 

WTI crude surged 3.6% to $93.10 per barrel and Brent crude advanced 3.3% to settle at $94.44 per barrel.

 

European markets fell 0.2%-1.3%.

 

AT HOME

 

Bears were back after three-day retreat as benchmark indices nosedived 1.3% each, snapping 3-day winning streak. Sensex settled at 58152, down 773 points while Nifty lost 231 points to finish at 17374. Nifty mid-cap and small-cap indices tumbled 2% and 2.4% respectively, suffering the worst fall after 24th January. All the BSE sectoral indices ended in red, with IT and Teck indices leading the losses, down 2.6% and 2.4% respectively.

 

FIIs net bought stocks worth Rs 109 cr but net sold index futures and stock futures worth Rs 1053 cr and 1014 cr respectively. DIIs were net sellers to the tune of Rs 697 cr.

 

Rupee depreciated 44 paise to end at 75.38/$.

 

For the week, Sensex and Nifty fell 0.8% each.

 

India's industrial growth, represented by IIP, fell to 10-month low at 0.4% in December.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.5%-2.5% and SGX Nifty is suggesting around 230 points lower start for our market.

 

In yesterday’s report we had said that 17639, the top made Thursday, which roughly coincided with 20-DMA, is the immediate hurdle to eye while 17390 was the immediate support.

 

Nifty plunged to touch a low of 17303 before closing at 17374 and is set to open below 17200 today.

 

17150, around which a trendline adjoining bottoms made on 25th January and 8th February is placed, is the immediate support to eye, upon breach of which, 17043, the low made last week, would be the next support.

 

17639, the top made last week, which roughly coincided with the 20-DMA, is the immediate hurdle to eye.

 

For Banknifty, 20-DMA, placed around 38200, is the immediate support, upon breach of which, 34-DMA, placed around 37700, would be the next important support to eye; 39424, the top made on 3rd February, is the upside level to eye.

 

17390 IS THE IMMEDIATE SUPPORT

 

17390 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices ended with cuts of 1.5%-2.1% after a volatile session as key inflation data showed hotter-than-expected price pressures.

 

The consumer price index for January rose 7.5%, its biggest year-on-year gain since February 1982. The expected figure was 7.2%. Month-on-month rise stood at 0.6%. Separately, initial jobless claims came in at 223,000 for the week ended Feb. 5, lower than the expected 230,000.

 

US 10-year treasury yield jumped 12 basis points to about 2.05%, the first time that the benchmark rate reached 2% since August 2019. 2-year yield surged 26 bps to top 1.6% for its biggest single day move since 2009. Dollar index, after touching a high of 96.002, eased to end 0.25% higher at 95.793. Gold, after hitting a top of $1842, slipped to end 0.3% lower at $1827 per ounce.

 

Brent crude futures settled 14 cents, or 0.15%, lower at $91.41 per barrel while WTI crude settled 22 cents, or 0.25%, higher at $89.88 per barrel.

 

In Europe, FTSE and DAX gained 0.4% and 0.05% respectively while CAC fell 0.4%.

 

AT HOME

 

Benchmark indices, buoyed by dovish RBI policy, climbed eight tenth of a percent each, extending the winning streak to third straight day. Sensex settled at 58926, up 460 points while Nifty added 142 points to finish at 17605. Nifty mid-cap and small-cap indices gained 0.3% and 0.5% respectively. Except 0.1% lower Capital Goods index, all the BSE sectoral indices ended higher, with Power and Metal indices leading the tally, up 1.4% and 1.3% respectively.

 

FIIs net sold stocks worth Rs 1733 cr but net bought index futures and stock futures worth Rs 2276 cr and 540 cr respectively. DIIs were net buyers to the tune of Rs 2727 cr.

 

Rupee depreciated 13 paise to end at 74.94/$.

 

Monetary Policy Committee decided to leave repo as well as reverse repo rate unchanged and also maintained "Accommodative" stance. RBI projected FY23 CPI to be 4.5% and GDP growth to be 7.8%.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 0.4% and 0.1% respectively while Hang Seng is down 0.1%. SGX Nifty is suggesting around 170 points lower start for our market.

 

In yesterday's report we had said that 17515 continued to be immediate hurdle, upon sustained crossover of which, 17794, the top made last week, would be the next upside level to eye.

 

Nifty crossed 17515 and surged all the way to 17639 before closing at 17605. The benchmark however is set to open near 17450 today.

 

Immediate support on the hourly chart is placed around 17390, upon breach of which, 17100, around which a trendline adjoining recent bottoms is placed, would be the next downside level to eye.

 

17639, the top made yesterday, which roughly coincided with 20-DMA, is the immediate hurdle to eye, upon crossover of which, 17794, the top made last week, would be the next upside target.

 

Meanwhile trading longs can be held on to with the stop-loss of 17390.

 

39425, the top made last week, is the next upside target for Banknifty; 38400 is immediate support.

 

Divi's Lab and ONGC will report their quarterly numbers today.

 

RBI IN FOCUS

 

RBI IN FOCUS

 

WORLD MARKETS

 

US indices gained 0.9%-2.1% to extend Tuesday's rebound, monitoring another round of corporate earnings and awaiting Thursday's CPI data. Nasdaq gained the most.

 

Markets are also waiting for US Consumer Price Index report to be released today, which is estimated to show that prices rose 0.4% in January, for a 7.2% gain from one year ago.

 

US 10-year treasury yield eased 2.5 bps to 1.94%. Dollar index eased 0.1% to 95.55. Spot gold rose 0.5% to $1,834.30 per ounce.

 

Brent crude futures fell 34 cents, or 0.4%, to $90.44 per barrel while WTI crude settled 30 cents, or 0.34%, higher at $89.66 per barrel.

 

European markets gained 1%-1.6%.

 

AT HOME

 

Benchmark indices soared 1.1% each, extending winning streak to second straight day. Sensex settled at 58465, up 657 points while Nifty added 197 points to finish at 17463. Nifty mid-cap and small-cap indices rose 1.1% and 0.4% respectively, snapping 4-day losing streak. Except 0.4% lower Oil & Gas index, all the BSE sectoral indices ended in green, with Auto and Consumer Durables indices leading the gains, up 2.2% and 1.8% respectively.

 

FIIs net sold stocks worth Rs 893 cr but net bought index futures and stock futures worth Rs 1457 cr and 1141 cr respectively. DIIs were net buyers to the tune of Rs 1793 cr.

 

Rupee depreciated 6 paise to end at 74.81/$.

 

OUTLOOK

 

Today morning, Nikkei is up a third of a percent while Hang Seng and Shanghai are marginally in the red. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 17043, the low made Tuesday, was the immediate support while 17515 was the immediate hurdle.

 

Nifty soared to touch a high of 17477 before closing at 17463.

 

17515 continues to be immediate hurdle, upon sustained crossover of which, 17794, the top made last week, would be the next upside level to eye.

 

17043, the low made Tuesday, which roughly coincided with the trendline adjoining recent bottoms on the daily chart, continues to be immediate support.

 

RBI's Monetary Policy Committee will announce its decision today. It is widely expected that the MPC will maintain the key lending rate, i.e. Repo Rate at 4.0%, but increase the reverse repo rate, which is currently at 3.35%, by 15 to 40 bps. The stance is mostly expected to be maintained as "Accommodative".

 

Hindalco, M & M and Hero Motocorp will report their quarterly numbers today.

 

NIFTY HOLDS TRENDLINE SUPPORT; 17515 IS THE IMMEDIATE HURDLE

 

NIFTY HOLDS TRENDLINE SUPPORT; 17515 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices gained 0.8%-1.3% as a handful of strong corporate earnings boosted sentiment.

 

US 10-year treasury yield rose 4 bps to 1.96%. Dollar index inched up 0.2% to 95.62. Spot gold rose 0.4% to $1,827.86 per ounce.

 

US December trade deficit came in at $80.7 billion as against the expected $82.8 billion shortfall.

 

Brent as well as WTI crude fell 1.9% each to to $90.91 and $89.60 per barrel respectively.

 

In Europe, except 0.1% lower FTSE, other markets gained 0.2%-0.3%.

 

AT HOME

 

After falling a percent, benchmark indices surged to end higher by three tenth of a percent, snapping 3-day losing streak. Sensex settled at 57808, up 187 points while Nifty added 53 points to finish at 17266. Nifty mid-cap and small-cap indices however ended with cuts of 0.7% and 1.7% respectively, extending the losing streak to fourth consecutive day. BSE Utilities and Power indices tumbled 2.8% each, becoming top losers among the sectoral indices while Metal and Energy indices were the top gainers, up 1.1% and 0.9% respectively.

 

FIIs net sold stocks worth Rs 1968 cr but net bought index futures and stock futures worth Rs 427 cr and 967 cr respectively. DIIs were net buyers to the tune of Rs 1115 cr.

 

Rupee depreciated 5 paise to end at 74.75/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 1.8% and 0.8% respectively while Shanghai is marginally in the red. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 17000, where a trendline adjoining recent bottoms is placed, is the next support and had advised holding on to short positions with the stop-loss of 17565.

 

Nifty, after touching a low of 17043, rebounded to end at 17266.

 

17043, the low made yesterday, which roughly coincides with the trendline adjoining recent bottoms on the daily chart, is the immediate support to eye. If this level breaks, 16836, the bottom made in January, would be the next downside level to eye.

 

Immediate resistance on the hourly chart has moved lower to 17515, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 37319, the low made yesterday, coincided with the 34-DMA and hence is the important immediate support; 38700 is the immediate hurdle.

 

17000 IS THE NEXT SUPPORT; 17565 IMMEDIATE HURDLE

 

17000 IS THE NEXT SUPPORT; 17565 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow ended flat while S & P 500 and Nasdaq fell 0.4% and 0.6% respectively after a choppy session.

 

US 10-year treasury yield was little changed at 1.918%. Dollar index too was flattish at 95.41. Gold rose 0.7% to $1820 per ounce

 

Brent crude declined 58 cents, or 0.62%, to $92.69 per barrel while WTI crude fell 99 cents, or 1.1%, to settle at $91.32 per barrel.

 

European markets gained 0.7%-0.8%. German industrial production slipped by 0.3% in December, short of expectations for a 0.4% monthly rise.

 

AT HOME

 

Benchmark indices plunged 1.7% each, extending the losing streak to third straight day and suffering the biggest cut after 24th January. Sensex settled at 57621, down 1023 points while Nifty lost 302 points to finish at 17213. Nifty mid-cap and small-cap indices fell 1% and 1.3% respectively. BSE Finance and Capital Goods indices tumbled 2.3% and 2.1% respectively, becoming top losers among the sectoral indices while Utilities and Power indices were the top gainers, up 1% and 0.7% respectively.

 

FIIs net sold stocks and index futures worth Rs 1157 cr and 1067 cr respectively but net bought stock future worth Rs 165 cr. DIIs were net sellers to the tune of Rs 1376 cr.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent while Hang Seng and Shanghai are off 0.5% and 0.2% respectively. SGX Nifty is suggesting a marginally higher start for our market.

 

In yesterday's report we had said that 17400 continued to be immediate support on the hourly chart upon breach of which, 17244, the low made on the budget day, would be the next level to eye.

 

Nifty broke 17400 and plunged all the way to 17119 before closing at 17213.

 

17000 where a trendline adjoining recent bottoms is placed, is the next support, upon breach of which, 16836, the bottom made in January, would be the next downside level to eye.

 

Immediate hurdle on the hourly chart is placed around 17565, with the stop-loss of which, trading shorts can be held on to.

 

37690, the low made on the Budget day, is the next support for Banknifty below which 34-DMA, placed around 37300 would be the next downside level to eye; 38800 is the immediate hurdle.

 

Bharti Airtel will report its quarterly earnings today.