NIFTY RESISTED NEAR 9130 HURDLE; 9019 IS THE IMMEDIATE SUPPORT

NIFTY RESISTED NEAR 9130 HURDLE; 9019 IS THE IMMEDIATE SUPPORT

WORLD MARKETS                             

Dow and S & P 500 fell 0.3% and 0.1% respectively while Nasdaq gained 0.2% on Friday after media reports that the House pulled a key health care vote that was seen as crucial for President Donald Trump's agenda. Material stocks lagged while health care sector turned positive following the news.

Trump had warned House Republican lawmakers on Thursday that he is prepared to leave Obamacare unchanged and move on to tax reform if they do not vote in favor for new health-care legislation on Friday.

Durable goods orders rose 1.7% in February, above the expected increase of 1.2%. The IHS Markit manufacturing PMI, meanwhile, hit a five-month low of 53.4.

The dollar traded marginally lower. Treasuries rose, as the benchmark 10-year note yield dipped below 2.4%.

European markets closed mixed with modest changes. The composite Purchasing Managers Index (PMI) for the euro zone came in stronger-than-anticipated, rising to 56.7 from 56.0. The flash reading represents the highest first quarter average in six years.

For the week US indices fell 1.2%-1.5%. In Europe, FTSE fell 1.2% while CAC and DAx were down 0.2% and 0.3% respectively. In Asia, Nikkei was down 1.3% but Shanghai and Hang Seng gained 1% and 0.2% respectively.

A joint committee of ministers from OPEC and non-OPEC oil producers agreed on Sunday to review whether a global pact to limit supplies should be extended by six months.

AT HOME

After rising half a percent through the session, benchmark indices gave away half of the gains in last 45 minute dip to end higher by a fourth of a percent. Sensex added 89 points to settle at 29421 while Nifty finished at 9108, up 22 points. BSE mid-cap index ended marginally lower while small-cap index gained 0.4%. BSE Bankex climbed 1.2%, becoming top gainer among the sectoral indices, followed by 0.9% rise in Finance index. IT and Teck indices were the top losers, down 0.8% and 0.7% respectively.

FIIs net bought stocks worth Rs 543 cr but net sold index futures and stock futures worth Rs 316 cr and 81 cr respectively. DIIs were net buyers to the tune of Rs 117 cr.

Rupee appreciated 16 paise to end at 65.41/$.

SEBI banned Reliance Industries and 12 others from equity derivatives trading for one year and directed the firm to disgorge nearly Rs 1,000 crore for alleged fraudulent trading in a 10-year-old case. The company said it will appeal against the order.

For the week, Sensex and Nifty lost 0.6% and 0.8% respectively, breaking two-week winning streak.

OUTLOOK

Today morning, except a marginally higher Shanghai, other Asian markets are trading with cuts of 0.2%-1.5% with Nikkei leading the losses. SGX Nifty is suggesting about 25 points lower start for our market.

In Friday's report we had mentioned that "9120-9130 continues to be immediate resistance area, a sustained trading above which is required to generate a buy on the hourly chart". The benchmark, after touching a high of 9134, retreated to end at 9108 and is set to open lower today.

9130 continues to be immediate hurdle, a decisive crossover of which is required to generate a fresh buy on the hourly chart. 9218, the top made on 17th March, would be th next target in that case. On the way down, 9019, the bottom made last week, is the immediate support, below which 34-DMA, placed around 8930, would be the next support to eye.