TRAIL STOP-LOSS TO 17250

 

TRAIL STOP-LOSS TO 17250

 

WORLD MARKETS

 

Dow, supported by healthcare stocks, rose quarter of a percent but S & P 500 and Nasdaq fell 0.25% and 1.1% respectively on the back of weak economic data.

 

The ADP private payrolls report released Wednesday showed job growth slowed in March. Additionally, the ISM’s non-manufacturing index fell to 51.2 last month from 55.1 in February, while the prices paid component declined to 59.5 from 65.6, with the services sector’s employment indicator sliding as well to 45.8 from 47.6.

 

US 10-year treasury yield fell 3 bps to 3.314%. Dollar index rose 0.3% to 101.882. Gold was flat at $2020 per ounce.

 

Brent crude futures settled up 5 cents, or 0.1%, at $84.99 a barrel, while WTI crude ended 10 cents, or 0.1%, lower at $80.61 a barrel.

 

In Europe, FTSE rose 0.4% but DAX and CAC fell 0.5% and 0.4% respectively.

 

AT HOME

 

Sensex and Nifty surged 1% and 0.9% respectively, extending the winning streak to fourth consecutive day and closing at the highest level after 9th March. Sensex settled at 59689, up 582 points while Nifty added 159 points to finish at 17557. Nifty mid-cap index was little changed while small-cap index rose 0.7%. Except 0.8% and 0.6% lower PSU Bank and Auto indices respectively, all the NSE sectoral indices ended higher, with FMCG and IT indices on the top, up 1.4% and 1.2% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 807 cr, 2789 cr and 561 cr respectively. DIIs were net sellers to the tune of Rs 947 cr.

 

Rupee appreciated 33 paise to end at 82/$.

 

India's S & P Global March Services PMI fell to 57.8 in March from 59.4 in the previous month.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.1%-1% and SGX Nifty is suggesting around 20 points lower start for our market.

 

In yesterday's report we had said that 17500, around which 200-DMA is placed, was the next upside target, above which, 17592, the 78.6% retracement levels of the recent 17800-16828 fall, would be next upside level to eye. We had also said that 17150-17100 was the immediate support zone, with the stop-loss of which, trading longs could be held on to.

 

Nifty soared to touch a high of 17570 before closing at 17557.

 

17592, the 78.6% retracement levels of the recent 17800-16828 fall, is the next upside level to eye, upon crossover of which, 17800, the top made in March, would be important hurdle to tackle; Immediate support on the hourly chart has moved up to 17250, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 41671, the top made in March, is the next big level to eye; 40200 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

RBI's Monetary Policy Committee is widely expected to hike key repo rate by 25 bps to 6.75% when it announces it's decision today. Market would watch out for the commentary and inflation projections to guage future interest rate trajectory.