NIFTY FAILS TO CROSS 8970 HURDLE YET AGAIN; 8867 SUPPORT ON TEST

NIFTY FAILS TO CROSS 8970 HURDLE YET AGAIN; 8867 SUPPORT ON TEST

WORLD MARKETS                             

US indices fell 0.5%-0.7% yesterday, taking a breather after Wednesday's big upmove.

Fed Governor Jerome Powell, in an interview, indicated that conditions relating to inflation and employment are close enough to the Fed's goal that an increase merits serious consideration.

Jobless claims totaled 223,000, well below the expected 243,000. Last week's reading increased 6,000 to 244,000.

Dollar index gained half a percent to 102.15, the higest level in nearly two-months.

U.S. Treasury yields rose, with the two-year note yield hitting a fresh 2009 high, while the 10-year note yield reached 2.48%, its highest level since Feb. 16.

European markets ended mixed with modest changes. Euro zone annual flash inflation came in at 2% in February, up from 1.8% in January. Unemployment rate stood at 9.6% in January, unchanged from December.

AT HOME

After gaining half a percent in the morning trade, benchmark indices tumbled nearly a percent from the top of the day to end lower by half a percent. Sensex lost 145 points to settle at 28840 while Nifty finished at 8900, down 46 points. BSE mid-cap and small-cap indices slipped 1.4% and 1.3% respectively. Except a 0.3% rise in Auto index, all the BSE sectoral indices ended in red with Realty index leading the tally, down 4.3%, followed by 1.9% cut in Power index.

FIIs net bought stocks and index futures worth Rs 123 cr and 874 cr respectively but net sold stock futures worth Rs 265 cr. DIIs were net sellers to the tune of Rs 83 cr.

Rupee appreciated 12 paise to end at 66.70/$.

Bajaj Auto February sales rose marginally to 2.73 lac units from 2.72 lac units.

OUTLOOK

Today morning, Asian markets, except a marginally lower Nikkei, are trading with cuts of 0.5%-1% and SGX Nifty is suggesting about 30 points lower start for our market.

Yesterday, after touching a high of 8992, Nifty slipped to end at 8900, failing to close above the important 8970 hurdle yet again. After today's lower start, Nifty would be close to 8967 bottom made on Tuesday, a breach of which would generate a sell on the hourly chart and would pave the way for the further correction. 8804-8784, the gap created by the gap-up opening on 17th February, would be the next support area to eye in that case.

8970 continues to be major hurdle.