14527 CONTINUES TO BE IMMEDIATE HURDLE

 

14527 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.9% each on reports that President Joe Biden is seeking an increase in the tax on capital gains to 39.6% from 20% for Americans earnings more than $1 million.

 

First-time claims for unemployment insurance totaled 547,000, which was below the estimate of 603,000.

 

Republicans rolled out a counteroffer to Biden’s $2 trillion infrastructure plan. The $568 billion framework includes funding for bridges, airports, roads and water storage. It does not include tax increases.

 

Sales of previously-owned homes fell 3.7% to a seven-month low in March.

 

Intel shares fall 3.1% in extended trading after second-quarter earnings guidance missed expectation. Snap shares rose 4.7% in after-hours trading after it said it saw accelerating revenue growth and strong user numbers during the first quarter.

 

Brent as well WTI crude inched up 0.1% each to $65.40 and $61.43 per barrel respectively.

 

The yield on the benchmark 10-year Treasury note was little changed at 1.58%. Dollar index rose 0.2% to 91.28. Spot gold fell 0.4% to $1,786 per ounce.

 

European markets rose 0.6%-1%. The European Central Bank left policy unchanged as expected, keeping large stimulus flowing even as it predicted a rebound in the euro zone economy in the coming months as pandemic restrictions are lifted.

 

AT HOME

 

After falling a percent at the open, benchmark indices surged 1.8% from the bottom of the day to end higher by 0.8% each, snapping 2-day losing streak. Sensex added 374 points to settle at 48080 while Nifty finished at 14406, up 110 points. Nifty mid-cap and small-cap indices rose 0.5% and 0.8% respectively. BSE Bankex and Finance indices climbed 2.1% and 1.9% respectively, becoming top gainers among the sectoral indices while Consumer Durables index slipped 1.5%, becoming top loser, followed by 0.6% lower FMCG index.

 

FIIs net sold stocks worth Rs 910 cr but net bought index futures and stock futures worth Rs 438 cr and 1075 cr respectively. DIIs were net buyers to the tune of Rs 850 cr.

 

Rupee depreciated 8 paise to end at 74.95/$.

 

OUTLOOK

 

Today morning, Nikkei is off half a percent while Hang Seng and Shanghai are up 0.8% and 0.3% respectively.  SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that upon sustained trading below Monday's bottom, i.e. 14191, 13900-13850 would be the next support zone to eye. We had also said that 14527, the top made Monday, would act as immediate hurdle.

 

Nifty, after touching a low of 14151 in the initial trade, rebounded to end at 14406 and is set to open near 14350 today.

 

14527, the top made Monday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 14698, the top made last week, which also coincides with 34-DMA, would be the bigger hurdle to eye.

 

14151, the bottom made yesterday, which also coincides with a downward sloping trendline adjoining recent bottoms on the hourly chart, is the immediate support to eye. Below 14151, 13900-13850 would be the next support zone.