14652-14785 CONTINUES TO BE RESISTANCE ZONE; 14353 IMMEDIATE SUPPORT

 

14652-14785 CONTINUES TO BE RESISTANCE ZONE; 14353 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices climbed 0.9%-1.3%, with the Dow Jones Industrial Average crossing the 34,000 threshold for the first time ever, after key companies reported strong earnings and fresh economic data pointed to a rebound in consumer spending and the jobs market.

 

Retail sales jumped 9.8% in March as additional stimulus sent consumer spending soaring, topping the estimate of a 6.1% gain. Jobless claims dropped to 576000, the lowest level since March 2020 and much lower than the estimated figure of 710000.

 

Bank of America and Citi both posted strong earnings beats.

 

Brent crude gained 0.54% to settle at $66.94 per barrel per barrel, while WTI futures advanced 0.5% to $63.46 per barrel as the International Energy Agency (IEA) and others upgraded forecasts for oil demand as major economies recover from the pandemic.

 

The yield on the benchmark 10-year Treasury note fell about 8 basis points to 1.548%. Spot gold rose 1.8% to $1,766.50 per ounce, scaling a more than one-month peak.

 

Main European markets rose 0.3%-0.6%. Germany’s consumer price index came in at 0.5% on a monthly basis and 1.7% year-on-year. France’s CPI inflation came in at 0.7% in March.

 

AT HOME

 

Benchmark indices rose half a percent each, extending the winning streak to second straight day. Sensex added 260 points to settle at 48803 while Nifty finished at 14581, up 76 points. Nifty mid-cap index inched up 0.1% while Small-cap index fell 0.2%. BSE Metal index and Bankex climbed 1.5% and 1.1% respectively, becoming top gainers among the sectoral indices while Auto index was the top loser, down 1.2%, followed by 0.4% lower Consumer Discretionary Goods & Services and Realty indices.

 

FIIs net bought stocks and index futures worth Rs 980 cr and 1309 cr respectively but net sold stock futures worth Rs 805 cr. DIIs were net sellers to the tune of Rs 527 cr.

 

Rupee appreciated 12 paise to end at 74.93/$.

 

India's March exports rose 60% y-o-y and 24% MoM to $34.5 bn. Imports rose 54% Y0Y and 19% MoM to $48.4 bn. Trade deficit stood at $13.93 bn, up 40% YoY and 10.4% MoM.

 

March WPI inflation came in at 7.35% Vs 4.17% MoM.  

 

OUTLOOK

 

Today morning, Asian markets are trading flat to marginally higher and SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 14652-14785, the gap created by Monday's gap-down opening, continued to be resistance zone to eye while 14248, the bottom made Monday, continued to be important immediate support.

 

Nifty touched a high of 14597 before closing at 14581.

 

14652-14785, the gap created by Monday's gap-down opening, continues to be resistance zone to eye. 14353, the low made yesterday, would work as the immediate support, below which, 14248, the bottom made on Monday, would be the next downside level to eye.