Monday, March 20, 2017



WORLD MARKETS                             

Nasdaq ended flat while Dow and S & P 500 closed 0.1% lower on Friday.

Industrial production came in unchanged for February. Capacity utilization edged 0.1% lower to 75.4%. The University of Michigan preliminary read on consumer sentiment for March was 97.6.

US crude rose 3 cents or 0.1% to $48.78 a barrel. Baker Hughes said the weekly U.S. rig count rose by 14 oil rigs to a total of 631.

Treasury yields traded slightly lower, with the 2-year yield around 1.32% and the 10-year yield around 2.50%. Dollar index was little changed. Gold gained $3 to $1230 an ounce.

European markets, except a 0.2% lower Italy, gained 0.1%-0.8%. Euro zone registered a trade deficit in January - the first time in three years.

For the week, Dow gained 0.1%, S & P 500 fell 0.1%. WTI crude gained 0.1%. Gold soared 2.4%, its best week since Feb 3.

Finance ministers from twenty of the world's biggest economies held a two-day meeting, and warned against competitive devaluations and disorderly FX markets but failed to agree on keeping global trade free and open.


After a positive start, benchmark indices traded in a narrow range through the day and finally ended with modest gains. Sensex added 63 points to settle at 29649 while Nifty finished at 9160, up 6 points. BSE mid-cap index lost 0.1% while small-cap index ended marginally in the green. BSE FMCG index soared 2.4%, becoming top gainer among the sectoral indices, followed by 0.8% higher Realty index. Telecom index tumbled 2.7% to become top loser, followed by 0.5% cut in Utilities, Auto, Bank and Capital Goods indices.

FIIs net bought stocks worth Rs 1532 cr but net sold index futures and stock futures worth Rs 137 cr and 425 cr respectively. DIIs were net sellers to the tune of Rs 712 cr.

Rupee depreciated 4 paise to end at 65.57/$.

ITC surged 4.4% after the GST Council yesterday decided to cap the cess rate on tobacco products at Rs 4,170 per 1,000 sticks or 290% ad valorem.

For the week, Sensex and Nifty gained 2.4% and 2.5% respectively.


Today morning Japan, Singapore and Korea are trading with cuts of upto half a percent while China and Hang Seng are marginally higher. SGX Nifty is suggesting about 15 points lower start for our market.

We have been advising holding on to long positions with a trailing stop-loss and that continues to be the view. Immediate support on the hourly chart has moved up to 9045, which should serve as the fresh stop-loss for long positions.

On the way up, 9218, the top made on Friday, is the immediate hurdle above which 9300 would be the next target to eye.

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