TRAIL STOP-LOSS TO 22100

 

TRAIL STOP-LOSS TO 22100

 

WORLD MARKETS

 

U.S. and European markets were closed on Friday.

 

The personal consumption expenditures price index rose 2.8% in February, which is in line with expectations. The inflation gauge rose 0.3% from a month ago. The U.S. fourth quarter GDP increased at a 3.4% annualized rate, up from the previously reported 3.2% pace.

 

On Thursday, Dow and S & P 500 inched up 0.1% each to close at record highs. Nasdaq fell 0.1%.

 

U.S. 10-year treasury yield inched up 1 bps to 4.206%. Dollar index rose 0.2% to 104.54. Gold surged 1.7% to $2232 per ounce.

 

Brent crude futures rose 1.6% to $87.48 a barrel and WTI gained 2.2% to settle at $83.17 a barrel.

 

European markets ended flat to modestly higher. U.K. economy fell into a recession in 2023 with a 0.3% contraction in the final quarter. Germany’s statistics agency meanwhile said employment nudged fractionally higher in February.

 

For the week, U.S. indices gained 0.3%-0.8%. For March, indices gained 1.8%-3.1%, their fifth consecutive positive month. For the quarter, S&P 500 jumped 10.2% for its best quarterly stretch since 2019, while the Dow Jones Industrial Average added 5.6% for its best quarter since 2021. The Nasdaq Composite popped 9.1%.

 

China's March manufacturing PMI rose to 50.8, compared to February’s reading of 49.1.  Japan’s first-quarter Tankan survey showed that business optimism among large manufacturers fell, however, optimism among non-manufacturers rose.

 

AT HOME

 

Benchmark indices surged 0.9% on the last day of the week, month and financial year. Sensex settled at 73651, up 655 points while Nifty added 203 points to finish at 22326. Nifty mid-cap index rose half a percent while small-cap index was little changed. Except 0.7% lower Media index, all the NSE sectoral indices ended higher, with PSU Bank and Healthcare indices being the top gainers, up 2.6% and 1.4% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 188 cr, 68 cr and 10279 cr respectively. DIIs were net buyers to the tune of Rs 2692 cr.

 

Rupee depreciated 3 paise to end at 83.40/$.

 

For the week, Sensex and Nifty gained 1.1% and 1% respectively, extending the winning streak to second straight week. For the month, Sensex and Nifty gained 1.6% each, adding to previous month's modest gains. For the financial year, Sensex and Nifty jumped 24.8% and 28.6% respectively.

 

OUTLOOK

 

Today, Australian and Hong Kong markets are closed for Easter Monday. Shanghai is up 0.8% while Nikkei is down more than a percent. GIFT Nifty is suggesting around 35 points higher start for our market.

 

In Thursday's report we had said that 22351, was the next upside level to eye and had advised holding on to longs with the stop-loss of 21950.

 

Nifty surged all the way to 22516 before closing at 22326.

 

22526, the all-time high made on 11th March, is the immediate hurdle, upon crossover of which, 22750, around which upper end of a rising channel formation is placed, would be the next upside level to eye. On the way down, 22100 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 47662, the 78.6% retracement levels of recent 48161-45828 fall, is the immediate target, upon crossover of which, 48161, the top made on 6th March, would be next upside level to eye; 46800-46700 is the immediate support zone on the hourly chart, with the stop-loss of which, trading longs can be held on to.

Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.