22900 ABOVE 22775; 48500-48450 IS THE SUPPORT AREA

 

22900 ABOVE 22775; 48500-48450 IS THE SUPPORT AREA

 

WORLD MARKETS

 

U.S. indices fell 0.8%-1.1% on Wednesday after March CPI rose 0.4% for the month and 3.5% y-o-y, versus estimates of 0.3% and 3.4% respectively. U.S. 10-year treasury yield shot up 18 bps to 4.544%. Dollar index surged 1% to 105.19. Gold fell 0.9% to $2332 per ounce.

 

Yesterday, Dow ended flat while S & P 500 and Nasdaq climbed 0.7% and 1.7% respectively, with Nasdaq closing at a record.

 

Apple popped 4.3% on news reports that the company would transition its Mac product line to artificial intelligence-focused chips.

 

New York Fed President John Williams said there is no need for a policy change in the near term. Richmond Fed President Thomas Barkin echoed the same sentiment.

 

The March producer price index rose by 0.2% for the month, lower than the 0.3% increase anticipated. Core PPI, which excludes volatile food and energy prices, gained 0.2%, in line with the consensus estimate. A separate report showed 211,000 U.S. initial jobless claims for the week ended April 6, compared with a forecast for 215,000.

 

U.S. 10-year treasury yield rose 5 bps to 4.591%. Dollar index inched up 0.1% to 105.26. Gold jumped 1.7% to $2372 per ounce.

 

WTI crude futures fell 1.4% to settle $85.02 a barrel and Brent futures fell 0.8% to $89.74 a barrel.

 

European markets fell 0.3%-1%. European Central Bank held interest rates at a record high of 4% as expected, but sent a signal it was preparing for a cut.

 

AT HOME

 

Benchmark indices gained half a percent each to close at fresh record highs. Sensex settled at 75038, up 354 points while Nifty added 111 points to finish at 22753. Nifty mid-cap and small-cap indices climbed 1% and 0.7% respectively, both posting highest ever close. Except 0.3% and 0.1% lower Pharma and Auto indices respectively, all the NSE sectoral indices ended higher, with Media index on the top, up 1.8%, followed by 1.5% higher PSU Bank and Oil & Gas indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 2778 cr, 4006 cr and 3587 cr respectively. DIIs were net buyers to the tune of Rs 163 cr.

 

Rupee appreciated 13 paise to end at 83.19/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.6% but Hang Seng is down 1.8% and Shanghai is marginally in the red. GIFT Nifty is suggesting around 140 points gap-down start for our market.

 

In Wednesday's report we had said that 22850 was the next upside level to eye and that 22500-22450 was the immediate support zone, with the stop-loss of which, trading longs could be held on to.

 

Nifty touched a high of 22775 before closing at 22753 but is set to open near 22600 today.

 

After today's gap-down start, 22775, the top made on Wednesday, would be immediate hurdle to eye, upon crossover of which, 22900, around which upper end of a rising channel formation is placed, would be the next upside level to eye; 22500 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 50500 continues to be next major target to eye; 48500-48450 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

India's March CPI and February IIP data will be released today.

 

TCS will report its quarterly earnings today.

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