TRAIL STOP-LOSS TO 17650

 

TRAIL STOP-LOSS TO 17650

 

WORLD MARKETS

 

US indices fell 0.1%-0.8% as cooler-than-expected inflation report was overshadowed by recession concerns.

 

Minutes from the Federal Reserve’s last policy meeting showed officials feared the economy could tilt into a mild recession later this year in the wake of the U.S. banking crisis.

 

March consumer price index rose 0.1% against estimate for 0.2%, and 5% y-o-y v/s estimate of 5.1%. Excluding food and energy, the core CPI rose 0.4% and 5.6% on an annual basis.

 

US 10-year treasury yield fell 3 bps to 3.396%. Dollar index fell 0.6% to 101.53. Gold rose half a perecent to $2014 per ounce.

 

Brent crude rose 2.01% to $87.33 a barrel while WTI closed up 2.1% to $83.26.

 

European markets gained 0.1%-0.5%.

 

AT HOME

 

Sensex and Nifty gained 0.4% and 0.5% respectively, extending the winning streak to eighth straight day and closing at the highest level after 21st February. Sensex added 235 points to settle at 60392 while Nifty added 90 points to finish at 17812. Nifty mid-cap and small-cap indices rose 0.6% and 0.5% respectively. Nifty Healthcare and Pharma indices surged 2.6% and 2.2% respectively, becoming top gainers among the sectoral indices while PSU Bank and Media indices were the top losers, down 0.6% each.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1908 cr, 1674 cr and 1475 cr respectively. DIIs were net sellers to the tune of Rs 225 cr.

 

Rupee appreciated 3 paise to end at 82.10/$.

 

Divi's Lab surged after posting a recovery in export sales in March.

 

March CPI eased to 15-month low of 5.66% from 6.44% in the previous month on the back of cooling food inflation and base effect. IIP in February grew 5.6%, which was in-line with estimate.

 

TCS Q4 earnings missed estimate as Dollar revenue as well as margin both came below estimate. Constant currency revenue growth came in at 11-quarter low.

 

OUTLOOK

 

Today morning, Shanghai and Nikkei are little changed while Hang Seng is down a percent. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 18135, the top made in February, was the next big target to eye and had advised trailing stop-loss in longs to 17500.

 

Nifty surged to 17825 before closing at 17812.

 

18135, the top made in February, continues to be next big target to eye; 17650 is the immediate support on hourly chart, with the stop-loss of which, trading longs can be held on to.

 

42015, the top made in February, is the next target for Banknifty; 41100 is the immediate support.