10370 CONTINUES TO BE IMMEDIATE HURDLE; 10140 IMPORTANT SUPPORT
US indices soared 1.7%-1.8% after February jobs growth far exceeded expectations. Nasdaq hit a record high.
The U.S. economy added 313,000 jobs in February, the expected figure being 200,000. Wages, meanwhile, grew less than expected, rising 2.6% on an annualized basis.
WTI oil surged 3.2% to close at 62.12/$ and Brent rose 2.4% to $65.15 a barrel.
European markets, except 0.1% lower DAX, gained 0.1%-0.4%. Basic resources outperformed as metal prices and oil prices extended gains.
For the week, US indices surged 3.2%-4.2%. European markets rose 2.2%-3.8%. In Asia, Nikkei and Hang Seng rose 1.4% each while Shanghai climbed 1.6%. Indian markets however ended with cuts of 2.2%. WTI crude gained 1.4% to end at 62.12/$.
After gaining about half a percent in the morning, benchmark indices gave away all the gains and more in late noon plunged to end with modest cuts. Sensex settled 44 points lower at 33307 while Nifty finished at 10226, down 15 points. BSE mid-cap and small-cap indices fell 0.3% each. BSE Metal and Basic Material indices tumbled 1.9% and 1.1% respectively, becoming top losers among sectoral indices while IT and Teck indices were the top gainers, up 0.6% each.
FIIs net bought stocks, index futures and stock futures worth Rs 550 cr, 235 cr and 90 cr respectively. DIIs were net sellers to the tune of Rs 65 cr.
Rupee depreciated 2 paise to end at 65.16/$.
For the week, Sensex and Nifty slipped 2.2%.
GST Council on Saturday announced roll out of E-way bill from April 1 for inter-state movement of goods. Intra-state e-way bill, on the other hand, will be rolled out from April 15 in a staggered manner and the entire country will be covered by June 1. The existing system of filing GST returns has been extended by another three months.
Today morning, Nikkei and Hang Seng are up 2% and 1.4% respectively while Shanghai is up 0.2%. SGX Nifty is suggesting about 100 points higher start for our market.
After testing crucial 200 DMA support placed around 10140, Nifty ended last week at 10227 and is set to open above 10300 mark.
As mentioned in Friday's report, 10370 continues to be immediate hurdle, a crossover of which will generate a "Buy" on the hourly chart and would pave the way for a fresh upmove. Above 10370, 10470, the two-third retracement level of the recent 10632-10141 fall, would be the next upside target as well as the resistance to eye.