22700-22750 IS THE NEXT TARGET AREA; 22350-22325 IMMEDIATE SUPPORT ZONE

 

22700-22750 IS THE NEXT TARGET AREA; 22350-22325 IMMEDIATE SUPPORT ZONE

 

WORLD MARKETS

 

On Thursday, Nasdaq and S & P 500 surged 1.5% and 1% respectively, both notching all-time intraday highs, while the S&P 500 also clinched a closing record. Dow rose 0.3%.

 

On Friday, after rising to new all-time highs earlier in the session, S & P 500 and Nasdaq reversed to end with cuts of 0.6% and 1.2% respectively as earlier rally in Nvidia lost steam. Dow fell 0.2%.

 

February jobs data was mixed. While the number of jobs added last month was much more than expected, coming in at 275,000 compared with an estimate of 198,000, the unemployment rate unexpectedly ticked higher to 3.9% and wage growth was lighter than feared.

 

U.S. 10-year treasury yield fell 1 bps to 4.079%. Dollar index was little changed at 102.74. Gold surged 0.9% to $2179 per ounce.

 

WTI crude future fell 1.2% to settle at $78.01 a barrel while Brent future dropped 1.1% to $82.08 a barrel.

 

In Europe, CAC rose 0.2% while FTSE and DAX fell 0.4% and 0.2% respectively. European Central Bank left rates unchanged on Thursday and cut its forecast for inflation as well as growth.

 

For the week, U.S. indices fell 0.3%-1.2%. Gold soared 4.6% for it's best week since mid-October.

 

AT HOME

 

It was a day of consolidation as benchmark indices ended little changed after a rangebound session. Sensex settled at 74119, up 33 points while Nifty added 19 points to finish at 22493. Nifty mid-cap and small-cap indices gained 0.2% and 0.8% respectively. Nifty Media and Metal indices climbed 2.5% and 1.4% respectively, becoming top gainers among the sectoral indices while Oil & Gas index was the top loser, down 1.2%, followed by 0.3% lower Auto and Bank indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 7304 cr, 822 cr and 3623 cr. DIIs were net buyers to the tune of Rs 2602 cr.

 

Rupee appreciated 3 paise to end at 82.79/$.

 

For the week, Sensex and Nifty gained 0.4% and 0.5% respectively, extending the winning streak to fourth consecutive week.

 

OUTLOOK

 

China recorded its first month of inflation in four months with the country’s consumer price index climbing 0.7% year on year in February.  Japan averted a technical recession, after revised official data showed the economy expanded 0.4% in the October-December period last year.

 

Today morning, Hang Seng is up 1.5%, Shanghai is flat while Nikkei is down 2.2%. GIFT Nifty is suggesting around 90 points higher start for our market.

 

In Thursday's report we had said that 22600, followed by 22750 continued to be next upside levels to eye while 22300-22250 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 22525, closed at 22493. The benchmark is set to open above 22450 today.

 

22700-22750 is the next target area for Nifty; 22350-22325 is the immediate support zone on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 48636, the record high made on 28th December, is the next upside target to eye, upon crossover of which, 49000-49100 would be next target area. 47300 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

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