NIFTY TESTS 9180-9160 SUPPORT; 9274 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY TESTS 9180-9160 SUPPORT; 9274 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices ended marginally higher as gains in energy stocks helped to offset losses made by financials ahead of earnings season, which begins later in the week.

Energy stocks led the gainers as WTI oil rose 1.6% to settle at $53.08 per barrel after Libya's largest oilfield was shut down.

Concerns over geopolitical tensions continue to build in the Korean peninsula after the U.S. deployed a carrier strike group closer to the region, and as joint U.S.-Korea military drills continue till the end of the month.

Fed chair Yellen, at an event, said that plans to raise U.S. interest rates gradually are aimed at sustaining full employment and near-2% inflation without letting the economy overheat.

Dollar index eased from 101.24 to 101.

European markets ended with cuts of upto 0.9%.

AT HOME

After a positive start, Sensex and Nifty saw a sustained downward move through the session to end with cuts of 0.4% and 0.2% respectively, extending the losing streak to third straight day. Sensex lost 131 points to settle at 29576 while Nifty finished at 9181, down 17 points. BSE mid-cap and small-cap indices however ended with gains of 0.6% each. BSE IT and Teck indices tumbled 1.6% and 1.1% respectively, becoming top losers among the sectoral indices while Metal and Oil & Gas indices added 0.9% each, becoming top gainers.

FIIS net sold stocks and index futures worth Rs 716 cr and 511 cr respectively but net bought stock futures worth Rs 788 cr. DIIs were net buyers to the tune of Rs 202 cr.

Rupee depreciated 30 paise to end at 64.70/$.

Gartner lowered its growth estimates in global IT services spending for 2017 to 2.3% from an earlier estimate of 4.2% due to US visa policy, automation and newer tech like cloud computing and blockchain.

OUTLOOK

Today morning, except a 0.3% lower Nikkei, other Asian markets are trading with modest gains and SGX Nifty is suggesting a flattish start for our market.

Yesterday, Nifty, after touching a low of 9175, closed at 9181, extending the losing streak to third straight day and testing the immediate support zone of 9160-9180. A breach of 9175, the low made yesterday, would confirm a sell on the hourly chart and would pave the way for further correction. 20-DMA and 34-DMA, placed around 9135 and 9050 respectively, would be the downside targets if that happens. 

9274, the top made last week is the immediate hurdle above which 9400 would be the next target.