22750 CONTINUES TO BE NEXT UPSIDE TARGET; 22200 IMMEDIATE SUPPORT

 

22750 CONTINUES TO BE NEXT UPSIDE TARGET; 22200 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Nasdaq and S & P 500 inched up 0.2% and 0.1% respectively while Dow eased 0.1%.

 

The Dow was pressured by a decline of more than 8% in Intel after the company posted operating losses in its semiconductor manufacturing business.

 

Fed Chair Jerome Powell said the central bank needs more evidence of easing inflation before lowering the cost of borrowing money. Atlanta Fed President Raphael Bostic said he only sees one move lower this year, sometime in the fourth quarter.

 

Data from ADP data showed private payrolls grew more than expected in March.

 

U.S. 10-year treasury yield, after hitting an intraday high of 4.429%, reversed to end 1 bps lower at 4.349%. Dollar index fell half a percent to 104.23. Gold jumped 0.8% to $2300 per ounce.

 

WTI crude futures gained 0.3% to settle at $85.43 a barrel and Brent futures added 0.5% to settle at $89.35 a barrel.

 

In Europe, Dax and CAC gained 0.5% and 0.3% respectively while FTSE was flat. Euro zone inflation eased to 2.4% in March, according to flash figures, lower than the 2.6% forecast.

 

AT HOME

 

After starting nearly half a percent lower, benchmark indices recouped all the losses through the session to end almost flat. Sensex settled at 73876, down 27 points while Nifty lost 18 points to finish at 22434. Nifty mid-cap and small-cap indices climbed 0.5% and 1.2% respectively, extending the winning streak to eighth and ninth consecutive session respectively. Nifty Realty index tumbled 2.6%, becoming top loser among the sectoral indices, followed by 0.4% lower FMCG index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2214 cr, 1677 cr and 10315 respectively. DIIs were net buyers to the tune of Rs 1102 cr.

 

Rupee depreciated 5 paise to end at 83.44/$.

 

OUTLOOK

 

Markets in Hong Kong, mainland China and Taiwan are closed for a public holiday. Nikkei is up 1.7% and GIFT Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 22750 continued to be next upside target and 22150 continued to be immediate support.

 

Nifty, after touching a low of 22346, rebounded to end at 22434.

 

22750, around which upper end of a rising channel formation is placed, continues to be next upside level to eye; 20 and 34-DMAs are placed around 22200, making it a decent stop-loss for trading longs.

 

For Banknifty, 48161, the top made on 6th March, continues to be next upside level to eye; 47000 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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