17600 IS THE IMMEDIATE SUPPORT; 18150 IMMEDIATE HURDLE

 

17600 IS THE IMMEDIATE SUPPORT; 18150 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.8%-2.3% as treasury yields jumped after comments from U.S. Federal Reserve Governor Lael Brainard suggested an aggressive approach to shrinking the central bank’s balance sheet.

 

Lael Brainard indicated support for higher interest rates and said a swift reduction of the central bank’s balance sheet could begin as soon as May.

 

US 10-year treasury yield hit a high of 2.562%, its highest level since May 2019, before settling at 2.55%. Dollar index rose half a percent to 99.48. Spot gold fell 0.6% to $1,921 per ounce.

 

Meanwhile, the European Union proposed sweeping new sanctions against Russia, including a ban on coal imports. German Foreign Minister said the ban on coal will be followed by oil and then gas.

 

Brent crude futures fell 0.8% to $106.64 per barrel and WTI crude settled 1.3% lower at $101.96 per barrel.

 

In Europe, FTSE rose 0.7% but DAX and CAC fell 0.6% and 1.3% respectively. Eurozone final composite PMI dropped to 54.9 in March from 55.5 in February, but still came in slightly ahead of consensus estimates.

 

AT HOME

 

After starting higher by a fifth of a percent, benchmark indices slipped three fourth of a percent from the top of the day to end lower by half a percent. Sensex settled at 60176, down 435 points while Nifty lost 96 points to finish at 17957. Nifty mid-cap and small-cap indices however gained 1.4% and 0.8% respectively, extending the winning streak to sixth straight session. BSE Power and Utilities indices surged 3.4% and 3.3% respectively, becoming top gainers among the sectoral indices while Bankex and Finance indices were the top losers, down 1.3% and 1.2% respectively.

 

FIIs net bought stocks worth Rs 375 cr but net sold index futures and stock futures worth Rs 358 cr and 1767 cr respectively. DIIs were net buyers to the tune of Rs 105 cr.

 

Rupee appreciated 22 paise to end at 75.32/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are down 1.6% each and Shanghai is off 0.1%. SGX Nifty is suggesting around 130 points lower start for our market.

 

In yesterday's report we had said that 18150 continued to be upside level to eye and had advised trailing stop-loss in long positions to 17600.

 

Nifty, after making an intraday high of 18095, slipped to end at 17957 and is set to open below 17850 today.

 

17600 continues to be downside support and 18150 continues to be immediate hurdle for Nifty; Trading longs can be held on to with the stop-loss of 17600.

 

36900 continues to be immediate support for Banknifty; 39425, the top made in February, is the upside level to eye.