NIFTY BREAKS 7840 SUPPORT; STAY SHORT WITH THE STOP LOSS OF 7920
US indices ended lower by about a fifth of a percent but well off the day low. Energy stocks led the losers while defensive sectors gained the most.
Nymex oil fell $1.09 or 2.5% to $42.64 a barrel while Brent eased 1.4% to $44.48. Saudi Arabia's government yesterday unveiled a 15-year plan that included regulatory, budget and policy changes aimed at making the kingdom less reliant on crude
New home sales in March fell 1.5% to a seasonally adjusted annual rate of 511,000.
Dollar index fell about 0.3%. Gold gained $10 to $1240 an ounce.
European markets fell 0.5%-1.5% with Italy leading the losses. Basic resources sector fell the most as concerns over China's economy and a fall in several metal prices like copper and lead, weighed on sentiment. Germany's Ifo Business climate index hit 106.6, below market expectations, but only a touch lower from the 106.7 recorded in March.
After falling nearly a percent intraday, benchmark indices recouped some of the losses in last hour or so to end lower by six tenth of a percent. Sensex lost 159 points to settle at 25679 while Nifty ended at 7855, down 44 points. BSE mid-cap and small-cap indices lost 0.1% and 0.4% respectively. BSE Utilities and Power indices lost 1.4% each, becoming top losers among the sectoral indices while Telecom and Teck indices gained 0.7% and 0.3% respectively.
FIIs net bought stocks and index futures worth Rs 222 cr and 13 cr respectively but net sold stock futures worth Rs 43 cr. DIIs were net sellers to the tune of Rs 748 cr.
Rupee depreciated 12 paise to end at 66.61/$.
Ultratech Cement reported better-than-expected 10.9% rise in fourth quarter net profit at Rs 681 cr, helped by lower tax and finance cost and better operational performance. Revenue rose 4.7% to Rs 6504 cr. Operating profit rose 3.2% to Rs 1353 cr but margin declined 30 bps to 20.8%, but were better-than-expected.
The second phase of the budget session of the Parliament started on a stormy note. The Opposition targeted the government on the Uttarakhand political crisis but the government refused to debate the issue.
Today morning Asian markets are trading mixed with changes of upto half a percent and SGX Nifty is suggesting a flattish start for our market.
After being resisted at important 7980 hurdle last week, Nifty yesterday broke the immediate support of 7840 by making an intraday low of 7827, but recovered to close at 7855.
Nevertheless a sell has been triggered on the hourly chart and traders can initiate fresh shorts once 7827, the bottom made yesterday is taken out. Existing shorts can carry a stop loss of 7920, which is the immediate resistance on the hourly chart. 7770-7720, the gap created by the gap up opening on 13th April, would be the support area to eye.
Maruti and Axis Bank will report their quarterly earnings today.
Fed starts its two day meeting today.