14900 CONTINUES TO BE IMMEDIATE HURDLE

 

14900 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices rose 0.3%-1.2% as the 10-year Treasury yield declined 5 basis points to 1.68%, following a 14-month high touched last week. The Dow and S&P 500 broke a two-day losing streak while Nasdaq rose for the fifth positive session in six.

 

In prepared remarks published ahead of Fed Chair Powell and Treasury Secretary Yellen's appearance before the U.S. House Committee on Financial Services, Powell noted that the recovery is gaining steam, before adding there’s still a long way to go.

 

Brent crude inched up 6 cents or 0.1% to $64.59 a barrel while U.S. oil gained 13 cents to settle at $61.55 per barrel.

 

The dollar index fell about 0.35% to 92.09. Spot gold was down 0.3% at $1,738.93 per ounce.

 

In Europe, FTSE and DAX rose a fourht of a percent while CAC fell half a percent.

 

Meanwhile, Turkish Lira plunged 15% against the US dollar after President Erdogan abruptly replaced the central bank chief just days after a sharp interest rate hike, which Erdogan vehemently opposes.

 

AT HOME

 

Benchmark indices ended marginally lower after a choppy session. Sensex settled at 49771, down 86 points while Nifty lost 7 points to finish at 14736. Nifty mid-cap index rose 0.8% while small-cap index was little changed.  BSE Realty and IT indices climbed 2.9% and 1.7% respectively, becoming top gainers among the sectoral indices while Bankex and Finance indices were the top losers, down 1.5% and 1% respectively.

 

FIIs net sold stocks and index futures worth Rs 787 cr and 18 cr respectively but net bought stock futures worth Rs 275 cr. DIIs were net buyers to the tune of Rs 543 cr.

 

Rupee appreciated 14 paise to end at 72.37/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.6%, Hang Seng is flat while Shanghai is off 0.3%. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 14350, the bottom made on Friday, was the important immediate support while 14900 was the immediate hurdle.

 

Nifty, after a choppy session, settled 7 points lower at 14736 and is set to open above 14750 today.

 

14900 continues to be immediate hurdle on the hourly chart, a crossover of which is required for a fresh upmove.

 

14350, the low made last week, continues to be important support.

 

Meanwhile, trading shorts can be held on to with the stop-loss of 14900.