22270 IS THE IMPORTANT SUPPORT TO EYE; 22700-22775 IS THE RESISTANCE ZONE

 

22270 IS THE IMPORTANT SUPPORT TO EYE; 22700-22775 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

U.S. indices tumbled 1.2%-1.6% as inflation and geopolitical worries dented sentiment.

 

JPMorgan Chase shares declined more than 6% after the banking giant said net interest income could be a little short of what analysts are expecting in 2024. CEO Jamie Dimon also warned about persistent inflationary pressures weighing on the economy. Wells Fargo slipped 0.4% after reporting its latest quarterly figures. Citigroup dropped 1.7% despite posting a revenue beat.

 

Import prices in the start of 2024 posted their largest three-month gain since May 2022. University of Michigan's consumer sentiment index for April came in at 77.9, below the estimate of 79.9. Year-ahead and long-run inflation expectations also ticked up.

 

U.S. 10-year treasury yield fell 7 bps to 4.526%. Dollar index surged 0.7% to 106.01, it's highest level in more than 5-months. Gold, after hitting a record high of $2432 per ounce, reversed to end 1.2% lower at $2343 per ounce.

 

Oil prices continued their rise on reports that Israel is preparing for a direct attack by Iran this weekend. U.S. and Brent crude gained 0.8% each to settle at $85.66 and $90.45 a barrel respectively.

 

In Europe, FTSE rose 0.9% but DAX and CAC ended with modest cuts. Britain’s economic output increased by 0.1% in monthly terms in February, in line with expectations.

 

Data from China showed March exports contracted sharply, while imports also unexpectedly shrank, both missing market forecasts by big margins. This follows a weaker-than-expected rise in the country’s inflation on Thursday.

 

For the week, Dow nosedived 2.4% while S & P 500 and Nasdaq fell 1.6% and 0.4% respectively. Dollar index jumped 1.5% this week, the biggest weekly gain since February.

 

AT HOME

 

Benchmark indices tumbled 1.1% each, marking their worst day in nearly a month. Sensex settled at 74245, down 793 points while Nifty lost 238 points to finish at 22515. Nifty mid-cap and small-cap indices fell 0.6% and 0.4% respectively. All the NSE sectoral indices ended lower, with Pharma and Healthcare indices being the top losers, down 1.7% and 1.4% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 8027 cr, 1997 cr and 6859 cr respectively. DIIs were net buyers to the tune of Rs 6342 cr.

 

Rupee depreciated 23 paise to end at 83.41/$.

 

India-Mauritius amended their double-tax avoidance agreement in a bid to curb tax evasion by introducing a new test to weed out transactions that are solely carried out for the purpose of tax benefit.

 

India's March CPI eased to a 10-month low of 4.8% in March. Core CPI cooled for the 10th straight month. Industrial production in February accelerated by 5.7%, the highest growth in last 4-months.

 

OUTLOOK

 

Iran launched more than 300 drones and missiles against military targets in Israel on Saturday. The U.S. intervened to directly help Israel shoot down nearly all of the incoming munitions, Biden said in a statement Saturday.

 

Today morning, Nikkei and Hang Seng are down 1% each while Shanghai is up 0.7%. GIFT Nifty is suggesting more than 100 points gap-down start for our market.

 

In Friday's report we had said that 22775, the top made on Wednesday, was the immediate hurdle while 22500 was the immediate support, with the stop-loss of which, trading longs could be held on to.

 

Nifty plunged to 22503 before closing at 22519. The benchmark is set to open near 22400 today.

 

22270, where 20 as well as 34-DMAs are placed, would be the important support to eye after today's gap-down start; 22700-22775 is the immediate resistance zone.

 

For Banknifty, 48500-48400 is the immediate support zone, upon breach of which, 48100-48000 would be next support area. 49057, the top made last week, is the immediate hurdle, upon crossover of which, 50500 would be next target.

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