NIFTY RETREATS FROM THE RESISTANCE ZONE; 14350, 14250 ARE SUPPORTS

 

NIFTY RETREATS FROM THE RESISTANCE ZONE; 14350, 14250 ARE SUPPORTS

 

WORLD MARKETS

 

US indices gained 0.1%-0.5% on Friday amid strong earnings from blue-chip companies as well as solid data signaling a snapback in the economy.

 

Morgan Stanley posted stronger-than-expected earnings, bolstered by strong trading and investment banking results.

 

The University of Michigan's preliminary consumer sentiment index rose to a one-year high of 86.5 in the first half of this month from 84.9 in March.

 

Brent crude settled 0.24% lower at $66.77 per barrel while WTI crude slid 0.5% to settle at $63.13 per barrel.

 

US 10-year treasury note rose to 1.587% while that on the 30-year bond climbed to 2.275%. Dollar index eased 0.111% to 91.561, its lowest since March 18. Spot gold rose 0.8% to $1,778.04 per ounce, hitting a seven-week high.

 

European markets rose 0.5%-1.3%. Eurozone inflation rose 0.9% month-on-month in March, driven primarily by services and energy.

 

China's first-quarter gross domestic product and March industrial production missed expectations, though GDP grew by a record 18.3%, while March retail sales topped projections.

 

For the week, US indices gained 1.1%-1.4%, with the S&P 500 and the Dow posting their fourth straight positive week, while the tech-heavy Nasdaq registered gains for three weeks in a row. In Europe, FTSE and DAX gained 1.5% each while CAC rose 1.9%. In Asia, Hang Seng rose 0.9% while Nikkei, Shanghai and Nifty fell 0.3%, 0.7% and 1.5% respectively.

 

Crude oil surged nearly 6% for the week. Gold rose 1.9% to $1777, hitting a seven-week high and registering best week since mid-December.

 

AT HOME

 

After rising around eight tenth of a percent, Sensex and Nifty lost most of the gains in last hour plunge to end higher by 0.1% and 0.25% respectively, extending the winning streak to third straight day. Sensex settled at 48832, up 28 points while Nifty added 36 points to finish at 14617. Nifty mid-cap and small-cap indices however climbed 1% and 1.1% respectively. BSE Healthcare index jumped 1.9%, becoming top gainer among the sectoral indices, followed by 1.3% higher Utilities, Consumer Durables and Power indices. Bankex was the top loser, down 0.5%, followed by 0.4% lower Capital Goods and Realty indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 438 cr, 55 cr and 1049 cr respectively. DIIs were net buyers to the tune of Rs 658 cr.

 

Rupee appreciated 57 paise to end at 74.35/$.

 

For the week, Sensex and Nifty fell 1.5% each, extending the losing streak to second straight week.

 

OUTLOOK

 

Today morning, Nikkei is flat while Hang Seng and Shanghai are up nearly half a percent each. SGX Nifty is suggesting arond 180 points lower start for our market.

 

In Friday's report we had reiterated the view that 14652-14785, the gap created by Monday's gap-down opening, continued to be resistance zone to eye.

 

Nifty, after touching a high of 14698, eased to end at 14617 and is set to open near 14450 today.

 

14353, the low made last Thursday, would be the immediate support to eye after today's gap-down opening. Below that, 14248, the bottom made last week, would be the next downside level to eye.

 

14652-14785, the gap created by last Monday's gap-down opening, continues to be resistance zone to eye.

 

31400-31000 is the immediate support zone for Banknifty, below which, 30520, the low made last week, would be the next downside level to eye. 32330, the upper end of the gap created by last Monday's gap-down opening, continues to be immediate hurdle.