21831, 21667 ARE SUPPORTS; 22350 IS IMMEDIATE HURDLE

 

21831, 21667 ARE SUPPORTS; 22350 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.5%-1% on Friday.

 

Data showed a solid U.S. manufacturing sector, with output rebounding by 0.8% last month after a downwardly revised 1.1% decline in the prior month. The University of Michigan’s preliminary reading on the overall index of consumer sentiment for March came in at 76.5, down from a final reading of 76.9 in February. The survey’s reading of one-year inflation expectations, was unchanged at 3.0% and five-year inflation outlook held steady as well at 2.9% for the fourth straight month.

 

U.S. 10-year treasury yield rose 2 bps to 4.31%. Dollar index inched up 0.1% to 103.45. Gold fell 0.3% to $2156 per ounce.

 

WTI crude futures fell 0.3% to settle at $81.04 a barrel and Brent futures eased 0.1% to $85.34 a barrel.

 

In Europe, CAC and DAX were little changed while FTSE fell 0.2%.

 

For the week, Dow was little changed while S & P 500 and Nasdaq fell 0.1% and 0.7% respectively.

 

AT HOME

 

Benchmark indices ended lower by 0.6% each on the last day of the turbulent week. Sensex settled at 72643, down 453 points while Nifty lost 123 points to finish at 22023. Nifty mid-cap index fell half a percent while small-cap index rose 0.4%, extending yesterday's big upmove. Except marginally higher Metal and FMCG indices, all the NSE sectoral indices ended lower, with Oil & Gas and Auto indices being the top losers, down 2% and 1.6% respectively.

 

FIIs net bought stocks worth Rs 849 cr but net sold index futures and stock futures worth Rs 633 cr and 1921 cr respectively. DIIs were net sellers to the tune of Rs 682 cr.

 

Rupee depreciated 6 paise to end at 82.88/$.

 

For the week, Sensex and Nifty fell 2% and 2.1% respectively, snapping 4-week winning streak and posting worst weekly cut since 27th October 2023. Nifty mid-cap index tumbled 4.6%, extending the losing streak to third consecutive week and posting worst week since 23rd December 2022. Small-cap index nosedived 5.5%, extending the losing streak to sixth straight week and had it's worst week since 23rd December 2022.

 

OUTLOOK

 

Today morning, Nikkei is up more than 2% while Shanghai and Hang Seng are up 0.5% and 0.1% respectively. GIFT Nifty is suggesting around 70 points lower start for our market.

 

In Friday's report we had said that 21860, the bottoms made on 29th February, continued to be next downside level to eye while 22350 continued to be immediate hurdle.

 

Nifty, after touching a low of 21931, closed at 22023.

 

21831, followed by 21667, which are the 50% and 61.8% retracement levels of the 21137- 22526 upmove seen since 24th January, are the next downside levels to eye. 22350 is the immediate hurdle on the hourly chart.

 

For Banknifty, 46200, the 78.6% retracement level of the upmove since 29th February, is the immediate support, upon breach of which 45661, the bottom made on 29th Feb., would be next downside level to eye. On the way up, 47225 is the immediate hurdle on the hourly chart.

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