NIFTY REBOUNDS FROM THE 200-DMA SUPPORT; 10370 IS THE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM THE 200-DMA SUPPORT; 10370 IS THE IMMEDIATE HURDLE

WORLD MARKETS

US indices gained 0.4% each after President Trump implemented steel and aluminum import tariffs that excluded Canada and Mexico, two key U.S. trade partners.

The move, which slaps 10% and 25% charges on aluminum and steel imports, respectively, will take effect in 15 days and also leaves the door open for other countries to argue why they should also be exempt.

Weekly jobless claims increased by 21,000 to 231,000 last week, bouncing back from a 48-year low.

Oil fell with WTI down 1.7% to $60.12 and Brent down 1.1% at $63.61 per barrel.

European Central Bank kept its interest rates unchanged but dropped its easing bias, fueling expectations that the central bank would move towards normalizing monetary policy.

European markets gained 0.6%-1.3%. Basic resources however fell following data showing that China imported 16% less iron ore in February than in the previous month. German manufacturing orders fell sharply in January, due to lower foreign orders.

AT HOME

Benchmark indices surged just under a percent in today's trade to break six-day losing streak. Sensex settled 318 points higher at 33351 while Nifty added 88 points to finish at 10242. BSE mid-cap and small-cap indices gained 0.6% and 0.5% respectively. BSE Realty index and Bankex were the top gainers among sectoral indices, up 1.6% and 1.4% respectively while Metal and telecom indices were the top losers, down 0.4% and 0.3% respectively.

FIIs net sold stocks worth Rs 365 cr but net bought index futures and stock futures worth Rs 325 cr and 374 cr respectively. DIIs were net buyers to the tune of Rs 675 cr.

Rupee depreciated 26 paise to end at 65.15/$.

OUTLOOK

South Korea's national security chief said President Donald Trump would meet North Korean leader Kim Jong Un by May.

Today morning, Nikkei is up more than 2% while Hang Seng and Shanghai are up 0.9% and 0.3% respectively. SGX Nifty is suggesting about 40 points higher start for our market.

After Nifty broke 10276 bottom made in February, we had given downside target of 10130, where 200-DMA was placed.

Nifty nearly achieved this target on Wednesday by touching a low of 10141 on Wednesday. Yesterday, it retested this bottom by touching a low of 10146 and rebounded sharply to close at 10242, giving more credence to this important level.

A higher start today would take Nifty close to 10300 mark. 10370, as mentioned yesterday, continues to be immediate hurdle on the hourly chart, a crossover of which is required for a fresh upmove.

200-DMA, placed around 10135, continues to be important immediate support below which 10033, the bottom made in December, would be the next crucial support to eye.

In the US, February employment report will be out today and is expected to show an addition of 2 lac jobs. Key focus however would be on average hourly earnings after January's print helped spark the most recent stock-market correction.