NIFTY REBOUNDS FROM 9019 SUPPORT; 9130 CONTINUES TO BE IMMEDIATE HURDLE
Dow and S & P 500 fell 0.2% and 0.1% respectively, digesting Trump's failure to repeal Obamacare. Nasdaq gained 0.2%. For the Dow, it was the eight consecutive day of red.
The benchmark 10-year note yield fell to 2.37%, while the short-term two-year note yield dipped to 1.25%. The U.S. dollar declined to a four-month low. Gold gained $7 to settle at $1256 per ounce.
WTI crude fell 24 cents to $47.73 a barrel.
European markets lost upto 0.6%. Basic resources were the worst performers after Copper prices slipped to a two-week low. Germany's Ifo business climate index climbed to its highest level in almost six years in March as sentiment increased to 112.3 points, up from 111.1 points the month previous.
Benchmark indices fell about two-third of a percent, breaking two-day winning streak. Sensex lost 188 points to settle at 29233 while Nifty finished at 9045, down 63 points. BSE mid-cap and small-cap indices lost 0.3% and 0.04% respectively. Except a 0.9% higher Consumer Durable index and flat Realty index, all the BSE sectoral indices ended in red. Metal index nosedived 2.6%, becoming top loser, followed by 1.6% cut in Energy index.
FIIs net bought stocks worth Rs 578 cr but net sold index futures and stock futures worth Rs 488 cr and 1029 cr respectively. DIIs were net sellers to the tune of Rs 594 cr.
Rupee appreciated 36 paise to end at 65.05/$.
Finance minister Arun Jaitley today introduced four bills on the Goods and Services Tax (GST) in the lower house of parliament, paving the way for the government to launch the landmark tax reform. The bills introduced are the Central GST Bill, the Integrated GST Bill, the Union Territory GST Bill, and the GST (Compensation to States) Bill. The state assemblies will also have to pass the State GST bill before the new tax system can be rolled out later this year.
Today morning, except a marginally lower Shanghai, other Asian markets are trading with gains of 0.2%-0.9% and SGX Nifty is suggesting about 30 points higher start for our market.
In yesterday's report we had mentioned that 9019, the bottom made last week, is the immediate support, below which 34-DMA, placed around 8930, would be the next support to eye.
The benchmark, after touching a low of 9025, recovered to end at 9045 and is set to open higher today.
9130 continues to be immediate hurdle on the hourly chart, a sustained trading above which will pave the way for further upmove. 9218, the top made on 17th March would be the next target if that happens.