22000-21950 IS THE NEXT SUPPORT AREA; 22600 IS IMMEDIATE HURDLE

 

22000-21950 IS THE NEXT SUPPORT AREA; 22600 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.6%-1.8% as rising yields and worries over the conflict in the Middle East overshadowed strong retail sales data and Goldman Sachs earnings.

 

Retail sales increased 0.7% in March, above the 0.3% consensus forecast. Data for February was revised higher to show sales rebounding 0.9% instead 0.6% as previously reported.

 

Goldman Sachs climbed nearly 3% after beating Wall Street expectations on both lines in the first quarter.

 

U.S. 10-year treasury yield rose 8 bps to 4.606%. Dollar index rose 0.2% to 106.18. Gold rose 1.7% to $2382 per ounce.

 

WTI crude futures fell 0.3% to settle at $85.41 a barrel and Brent futures fell 0.4% to $90.10 a barrel.

 

In Europe, FTSE fell 0.4% while DAX and CAC gained 0.5% and 0.4% respectively.

 

AT HOME

 

Benchmark indices nosedived 1.1% each, posting worst fall since 13^th March and closing at the lowest level after 27th March. Sensex settled at 73400, down 845 points while Nifty lost 246 points to finish at 22272. Nifty mid-cap and small-cap indices tumbled 1.6% and 1.7% respectively, their worst cut since 13th March. Except 0.4% higher Oil & Gas index, all the NSE sectoral indices ended lower, with Media and PSU Bank indices leading the losses, down 2.2% and 2% respectively.

FIIs net sold stocks and index futures worth Rs 3268 cr and 3850 cr respectively but net bought stock futures worth Rs 1209 cr. DIIs were net buyers to the tune of Rs 4763 cr.

 

Rupee depreciated 4 paise to end at 83.45/$.

 

India's March trade deficit stood at $15.60 bn Vs $18.70 bn month-on-month. March WPI inflation came in at 0.53%, up from 0.2% in February.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.6%-1.8% and GIFT Nifty is suggesting around 180 points gap-down start for our market.

 

In yesterday's report we had said that 22270, where 20 as well as 34-DMAs were placed, was the important support to eye while 22700-22775 was the immediate resistance zone.

 

Nifty fell to 22260 before closing at 22272 and is set to open near 22100 today.

 

Nifty has been trading in a rising channel formation since late January and lower end of this channel lands next support in 22000-21950 region; 22600 is the immediate hurdle.

 

For Banknifty, 34-DMA, placed around 47300, is the next support to eye; 48500 is the immediate hurdle.

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