15273 IS THE UPSIDE LEVEL TO EYE; 14862 IS THE IMMEDIATE SUPPORT

 

15273 IS THE UPSIDE LEVEL TO EYE; 14862 IS THE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

After plunging 2.6% in the initial trade, Nasdaq saw a stunning rebound to end higher by 1.6%. Dow and S & P 500, after falling 0.5% and 1% respectively, rebounded to end with gains of nearly 2%. The rebound happened after bond yields retreated from their session highs, while a stronger-than-expected jobs report boosted optimism for a faster economic recovery.

 

February nonfarm payrolls jumped by 379,000 and the unemployment rate fell to 6.2%. That compared to expectations of 210,000 new jobs and the jobless rate to hold steady from the 6.3% rate in January,

 

The 10-year Treasury yield eased back to 1.55% after popping above 1.6% to touch a 2021 high following data showing a surge in jobs growth.

 

Brent crude futures rose $2.62, or 3.9%, to settle at $69.36 a barrel while WTI crude rose $2.26, or 3.5% to settle at $66.09 a barrel.

 

Spot gold settled 0.1% lower at $1,695.22, after falling to its lowest since June 8 at $1,686.40 in the session.

 

Chinese Premier Li Keqiang announced the world’s second-largest economy would target growth of over 6% for 2021.

 

European markets fell 0.3%-1%.

 

For the week, Dow and S & P 500 rose 1.8% and 0.8% respectively but Nasdaq plunged 2.1%. European markets gained 1%-2.3%. In Asia, Nifty and Hang Seng rose 2.8% and 0.4% respectively but Nikkei and Shanghai fell 0.4% and 0.2% respectively. Brent crude rose 5.2%, rising for a seventh week in a row for the first time since December, while WTI was up about 7.4%.

 

AT HOME

 

Benchmark indices slipped nine tenth of a percent each, extending the losing streak to second consecutive day. Sensex settled at 50405, down 440 points while Nifty lost 142 points to finish at 14938. Nifty mid-cap and small-cap indices tumbled 2.2% and 1.6% respectively.  Except 0.2% and 0.1% higher Oil & Gas and FMCG indices respectively, all the BSE sectoral indices ended in red, with Metal and Telecom indices leading the losses, down 2.2% and 1.8% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2014 cr, 2265 cr and 1488 cr respectively. DIIs were net buyers to the tune of Rs 1191 cr.

 

Rupee depreciated 18 paise to end at 73.01/$.

 

For the week, Sensex and Nifty rose 2.6% and 3.1% respectively, snapping two-week losing streak.

 

OUTLOOK

 

Over the weekend, the U.S. Senate passed a $1.9 trillion coronavirus relief package that includes direct payments of up to $1,400 to most Americans. The bill is expected to pass in the Democratic-held House this week and sent to President Joe Biden for his signature before a March 14 deadline to renew unemployment aid programs.

 

Today morning, Asian markets are trading with gains of 0.5%-1.8% and SGX Nifty is suggesting around 130 points higher start for our market.

 

In Friday's report we had said that 14960-14900 was the important immediate support zone. Nifty, after touching a low of 14862, rebounded to end at 14938 and is set to open above 15050 today.

 

15273, the top made Wednesday, is the immediate hurdle, upon crossover of which, 15431, the top made on 16th February, would the next upside level to eye. 

 

14862, the low made Friday, would work as immediate support, upon breach of which, 34-DMA, placed around 14770, would be the next important support.