34-DMA LANDS SUPPORT AT 9080; 9200 IS THE IMMEDIATE HURDLE

34-DMA LANDS SUPPORT AT 9080; 9200 IS THE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices climbed 0.9% each, shrugging off geopolitical worries, with financials leading the gains.

Treasury Secretary Steven Mnuchin said that Republicans could complete tax reform without incorporating the border adjustment tax.

U.S. Vice President Mike Pence is on a 10-day tour of Asia and visited South Korea yesterday. Pence noted that U.S. "era of strategic patience" with North Korea was over and that "all options are on the table" when it came to Pyongyang.

In economic news, the Empire State index hit 5.2 in April, well below the March's 16.4 print. The NAHB survey showed sentiment among homebuilders slipped.

Oil prices fell by 1% due to reports of increased U.S. shale production.

The benchmark 10-year note yield hit 2.20%, its lowest level since Nov. 17 before bouncing back to trade around 2.23%. Gold traded off its session highs.

European markets were shut yesterday in observance of Easter.

AT HOME

Benchmark indices ended modestly lower after trading in a narrow range through the session, extending the losing streak to third straight day. Sensex lost 48 points to settle at 29414 while Nifty finished at 9139, down 12 points. BSE mid-cap and small-cap indices however gained 0.2% and 0.5% respectively. BSE Realty index soared 8.8%, becoming top gainer among the sectoral indices, followed by 0.8% rise in Oil & Gas index. Metal and Telecom indices were the top losers, down 1.1% and 0.7% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 251 cr, 79 cr nd 40 cr respectively. DIIs were net sellers to the tune of Rs 52 cr.

Rupee depreciated 7 paise to end at 64.57/$.

India's inflation based on the wholesale price index slipped to 5.70% in March from 6.55% in February as manufactured goods showed cost decline even as food prices hardened.

Kicking off the divestment process for the current financial year, the government has cleared the sale of stakes in multiple state-owned companies. It will be offloading 10% stake each in PFC, SAIL, NTPC & NHPC, 5% in REC, 15% in NLC India, and 3% in IOC via offer for sale.

OUTLOOK

Today morning, except a 0.6% higher Nikkei, other Asian markets are trading with cuts of upto half a percent and SGX Nifty is suggesting a marginally lower start for our market.

After Nifty broke the immediate support of 9160 last week, in yesterday's report we had mentioned that the 34-DMA, placed around 9075, is the next support to eye.

The benchmark, after touching a low of 9120, recovered to close at 9139.

34-DMA, which has now moved up to 9080, continues to be support to eye. 9200 continues to be immediate hurdle on the hourly chart above which 9273, the top made in early April, would be the next hurdle to eye.

Indian Met Department will hold press conference at 3 o'clock to update on monsoon progress.

TCS will report its quarterly earnings after market hours today where dollar revenue is expected to rise 2.1% q-o-q to USD 4479.5 mn. Net profit is expected to fall 2% to Rs 6638 cr while revenue may increase 0.4% to Rs 29864 cr. EBIT margin is likely to be flat at 26%.