14264 BELOW 14459; 14883 IS IMMEDIATE HURDLE

 

14264 BELOW 14459; 14883 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices surged 1.1%-1.7%, with the Dow and S & P 500 closing at record highs, on the back of strong economic data and accelerated vaccine rollout.

 

Data on Friday showed that the U.S. economy created the most jobs in seven months in March. A measure of services industry activity surged to a record high. However, A report from the Commerce Department showed that factory orders slowed month-over-month in February.

 

Meanwhile, U.S. reported another daily record of new Covid vaccinations Saturday, pushing the weekly average of new shots per day above 3 million.

 

10-year Treasury yield held steady at 1.71%, easing fears of rising inflation. The dollar index fell 0.40% to 92.59.

 

Brent crude plunged $3.08, or 4.8%, to $61.78 a barrel while WTI crude settled $2.80, or 4.6%, lower at $58.65 per barrel. Rising supply from OPEC+ and higher Iranian output weighed on the commodity.

 

European markets were shut on account of Easter Monday.

 

AT HOME

 

After plunging more than 2.5% in the morning, Sensex and Nifty recouped some of the losses to end lower by 1.7% and 1.5% respectively. Sensex settled at 49159, down 870 points while Nifty lost 229 points to finish at 14637. Nifty mid-cap and small-cap indices fell 1.3% and 1.5% respectively. BSE Realty index and Bankex nosedived 3.6% and 3.5% respectively, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 2% and 1.7% respectively. Nifty Bank closed at the lowest level after January 29.

 

FIIs net sold stocks and index futures worth Rs 932 cr and 1803 cr respectively but net bought stock futures worth Rs 291 cr. DIIs were net buyers to the tune of Rs 75 cr.

 

Rupee depreciated 20 paise to end at 73.30/$.

 

OUTLOOK

 

Today, Hang Seng is shut while Nikkei and Shanghai are down 0.5% and 0.2% respectively. SGX Nifty is suggesting around 25 points higher start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 14900, which roughly coincides with the 14883 top made last week, continued to be upside hurdle to eye while 14650-14600 was the immediate support zone on the hourly chart and trading longs can be held on to with the stop-loss of 14600.

 

Nifty broke 14600 support and plunged all the way to 14459, and rebounded from there to end at 14637.

 

14459, the bottom made yesterday, also coincides with the two-third retracement level of the recent 14264-14883 upmove and hence is the immediate support to eye. Below 14459, 14264, the low made in March, would be the crucial support.

 

14883, the top made last week, which also coincides with 34-DMA, is the immediate hurdle.