15051 ABOVE 14883; 14460 CONTINUES TO BE IMMEDIATE SUPPORT

 

15051 ABOVE 14883; 14460 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 ended marginally higher while Nasdaq eased 0.1%

 

Fed’s latest meeting minutes showed that participants were seeing signs of an economic rebound and a pickup in inflation but still believed they were a long way from altering their interest rate policy or asset purchasing program.

 

President Biden spoke about his administration’s $2 trillion infrastructure plan that includes a corporate tax rate hike to 28% and noted that he is willing to negotiate on the proposed tax increase.

 

Brent crude futures rose 42 cents, or 0.7%, to $63.16 a barrel while WTI crude settled 44 cents, or 0.7%, higher at $59.77 per barrel.

 

The yield on the benchmark 10-year Treasury note ticked up to 1.672%. The yield on the 30-year Treasury bond rose to 2.357%. Dollar index inched up 0.1% to 92.42. Spot gold fell 0.4% to $1,737.01 per ounce

 

In Europe, FTSE rose 0.9%, CAC was flat while DAX fell 0.2%. FTSE was boosted by a weakening of the pound against the dollar and optimism over the swift progress of vaccine rollouts across the U.K.  IHS Markit’s final euro zone composite PMI came in at 53.2, up from 48.8 in February and above the 52.5 flash estimate.

 

AT HOME

 

Benchmark indices rose 0.9% each, extending the winning streak to second straight day. Sensex settled at 49661, up 460 points while Nifty added 135 points to finish at 14819. Nifty mid-cap and small-cap indices climbed 1.3% and 1.7% respectively. Except 0.2% lower Power index, all the BSE sectoral indices ended in green, with Auto index and Bankex leading the tally, up 1.7% and 1.6% respectively

 

FIIs net bought stocks, index futures and stock futures worth Rs 227 cr, 762 cr and 299 cr respectively. DIIs were net buyers to the tune of Rs 381 cr.

 

Rupee nosedived 112 paise to end at 74.55/$, it's lowest level in over four months.

 

RBI's Monetary Policy Committee kept repo rate unchanged at 4% while maintaining its accommodative stance. RBI maintained its FY22 GDP growth forecast at 10.5% which consists of 26.2% in Q1; 8.3% in Q2; 5.4% in Q3; and 6.2% in Q4. RBI revised the projection for CPI inflation to 5.0% in Q4: 2020-21; 5.2 % in Q1:2021-22; 5.2% in Q2; 4.4% in Q3; and 5.1% in Q4.  In order to keep borrowing costs low and support the economy’s recovery, the central bank launched a G-sec Acquisition Programme (G-SAP), committing to purchase a specified quantum of bonds in the secondary market. The first purchase worth Rs 1 lakh crore will take place in Q1FY22. Following this announcement, bonds rallied smartly with benchmark yields tumbling by about ten basis points.

 

India's IHS Markit Services PMI for March eased to 54.6 from 55.3 in February. The composite PMI too dropped to 56 from 57.3.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.6% while Nikkei and Shanghai are off 0.2% and 0.1% respectively. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 14883, the top made last week, which also coincides with 34-DMA, continued to be immediate hurdle while 14460, the bottom made Monday, which is also the two-third retracement level of the recent 14264-14883 upmove, continued to be immediate support.

 

Nifty, after touching a high of 14880, eased to close at 14819 and is set to open above 14850 today.

 

14883, the top made last week, continues to be immediate hurdle, upon crossover of which, 15051 and 15336, the tops made on 16th March and 12th March respectively, would be the next upside levels to eye.

 

14460, the bottom made Monday, continues to be immediate support.