22750 CONTINUES TO BE UPSIDE LEVEL TO EYE; 22150 IMMEDIATE SUPPORT

 

22750 CONTINUES TO BE UPSIDE LEVEL TO EYE; 22150 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and Nasdaq tumbled 1% each while S & P 500 fell 0.7% as bond yields rose and markets lowered expectations that the Federal Reserve would cut interest rates in June.

 

Regional Fed Presidents Mary Daly of San Francisco and Loretta Mester of Cleveland both said they anticipate rate cuts this year but do not expect to start easing anytime soon.

 

Data showed U.S. job openings held steady at higher levels in February.

 

U.S. 10-year treasury yield rose 4 bps to 4.353% and earlier in the session hit its highest level since Nov. 28. Dollar index fell 0.2% to 104.75. Gold surged 1.2% to $2279 per ounce.

 

Oil prices rose to highs last seen five months ago amid an escalating conflict in the Middle East and a Ukrainian drone strike on a major Russian oil refinery. WTI crude rose 1.7% to $85.15 a barrel and Brent added 1.8% to $88.94 a barrel.

 

European markets fell 0.2%-1.2%.

 

AT HOME

 

Sensex eased 0.2% while Nifty ended little changed. Sensex settled at 73903, down 110 points while Nifty lost 8 points to finish at 22453. Nifty mid-cap index surged 1.2%, extending the winning streak to seventh straight session and posting highest ever close. Small-cap index also rose 1.2%, extending the winning streak to eighth straight session. Nifty Consumer Durables and Media indices climbed 1.9% each, becoming top gainers among the sectoral indices while IT index was the top loser, down 0.7%, followed by 0.2% lower Financial Services and Healthcare indices.

 

FIIs net sold stocks and stock futures worth Rs 1622 cr and 1610 cr respectively but net bought index futures worth Rs 678 cr. DIIs were net buyers to the tune of Rs 1953 cr.

 

Rupee appreciated 1 paise to end at 83.39/$.

 

India's March HSBC manufacturing PMI surged to 59.1, up from 56.9 in February and hitting highest level in 16 years.

 

OUTLOOK

 

Today morning, Nikkei is down 1% while Hang Seng and Shanghai are off 0.3% and 0.1% respectively. GIFT Nifty is suggesting around 125 points gap-down start for our market.

 

In yesterday's report we had said that 22750 was the next upside target and had advised trailing stop-loss in longs to 22150.

 

Nifty ended little changed at 22453. The benchmark is set to open below 22350 today.

 

22750, around which upper end of a rising channel formation is placed, continues to be next upside level to eye; 22150 continues to be immediate support on the hourly chart has, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 48161, the top made on 6th March, is the 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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