GO LONG WITH THE STOP LOSS OF 8460 FOR TARGETS OF 8600, 8700

GO LONG WITH THE STOP LOSS OF 8460 FOR TARGETS OF 8600, 8700

WORLD MARKETS                             

US indices soared 1.1%-1.5% on encouraging economic data and after Beijing unleashed new policy moves to rejuvenate a wobbly property market.

Personal income in February rose 0.4%, above expectations of 0.3%. Consumer spending rose 0.1%. Pending homes sales were up 3.1% in February, driven primarily by sales in the West and Midwest.

European markets gained between 0.5%-1.8%. A euro zone index measuring consumer and business confidence for March came in at 103.9, better than an estimate for 103.1. A flash figure for German inflation also showed a slight rebound, meeting met market expectations.

AT HOME

Benchmark indices soared nearly two percent in today's trade, with Nifty registering largest single day gain in a month and breaking eight day losing streak. Sensex saw largest percentage gain since 15th January. In absolute terms, Sensex surged 517 points to settle at 27976 while Nifty finished at 8492, up 151 points. BSE mid-cap index gained 1.9% while the Small-cap index skyrocketed 3.4%. All the BSE sectoral indices ended higher with Capital Goods and Realty indices leading the tally, putting on 2.8% and 2.2% respectively.

FIIs net sold stocks and index futures worth Rs 240 cr and 228 cr respectively but net bought stock futures worth Rs 886 cr. DIIs were net buyers to the tune of Rs 652 cr.

Rupee fell 26 paise to end at 62.67/$.

OUTLOOK

Today morning Asian markets are trading with gains ranging from 0.3%-1% and SGX Nifty is suggesting about 20 points higher opening for our market.

In yesterday's report we had said that immediate resistance on the hourly chart is placed around 8510, a crossover of which should be awaited for initiating fresh longs. The benchmark touched a high of 8504 yesterday before closing at 8492 and is likely to cross the 8510 hurdle at today's opening. In that case traders can initiate fresh longs for the immediate target of 8600, which is the 38.2% retracement level of entire 9119-8269 fall. Above 8600, 8700, the 50% retracement level, would be the next target.

Immediate support on the hourly chart is placed around 8460, which should serve as the stop loss for long positions.

India's Current Account Deficit for Q3 would be released today. Also in focus would be Core sector data for February.

8175 BELOW 8269; 8510 IS THE IMMEDIATE RESISTANCE

8175 BELOW 8269; 8510 IS THE IMMEDIATE RESISTANCE

WORLD MARKETS

US indices gained 0.2%-0.6% on Friday, breaking 4-day losing streak.

The third estimate for fourth-quarter U.S. GDP came in unchanged at 2.2%. While corporate profits fell, consumer spending was revised higher to 4.4% from 4.2%, the fastest rate since the first quarter of 2006.

The University of Michigan's final consumer sentiment reading for March was 93.0, slightly above estimates but below February's 95.4.

Nymex oil tumbled 5% to $48.87 a barrel on easing fears of disruption from conflict in Yemen and the likelihood of a deal in Iran that could increase supply.

European markets ended mixed. FTSE and Spain were down 0.6% and 0.2% respectively while CAC, DAX and Italy gained 0.2%-0.6%

For the week, US indices lost 2.2%-2.7%. European markets lost 0.8%-2.4% with FTSE leading the tally.

                                                             

AT HOME

After falling more than a percent and half from the high made in the initial trade, benchmark indices recovered nearly a percent from the bottom of the day to end flat. Sensex settled at 27459, up 1 point while Nifty finished at 8341, down 1 points. BSE mid-cap index ended marginally higher while the small-cap index lost 0.3%. BSE Capital Goods index and Bankex gained the most among the sectoral indices, rising 1.3% and 1.1% respectively while Oil & Gas and FMCG indices were the top losers, down 1.5% and 1% respectively.

FIIs net sold stocks worth Rs 321 cr but net bought index futures and stock futures worth Rs 392 cr and 142 cr respectively. DIIs were net buyers to the tune of Rs 675 cr.

Rupee appreciated 26 paise to end at 62.41/$.

For the week, Sensex and Nifty lost 2.8% and 2.7% respectively, extending the losing streak to third straight week.

Government on Friday decided to prorogue the Rajya Sabha and repromulgate the Land Ordinance, which lapses on April 5.

OUTLOOK

Today morning Asian markets are up 0.3%-1.3% and SGX Nifty is suggesting about 20 points higher opening for our market.

In Friday's report we had mentioned that oscillators on the hourly and daily chart continue to be negative and further weakness cannot be ruled out and therefore had advised selling into any rally.

The benchmark, after touching a high of 8413 in the initial trade, plunged to 8269 before recovering to end at 8341, vindicating our view.

We had also mentioned that 8322, where the 34 week moving average is placed, is the next support to eye, a close below which can take the benchmark to around 8170, where the 20-DMA is placed. Nifty, while went below 8322 intraday, managed to close above that.

The oscillators on hourly and daily chart however continue to be negative and traders would do well to wait for the crossover of immediate resistance placed around 8510 for initiating fresh longs.

8269, the low made on Friday, is the immediate support, below which 200-DMA, placed around 8175, would be the next major support.

8175 BELOW 8269; 8510 IS THE IMMEDIATE RESISTANCE

8175 BELOW 8269; 8510 IS THE IMMEDIATE RESISTANCE

WORLD MARKETS

US indices gained 0.2%-0.6% on Friday, breaking 4-day losing streak.

The third estimate for fourth-quarter U.S. GDP came in unchanged at 2.2%. While corporate profits fell, consumer spending was revised higher to 4.4% from 4.2%, the fastest rate since the first quarter of 2006.

The University of Michigan's final consumer sentiment reading for March was 93.0, slightly above estimates but below February's 95.4.

Nymex oil tumbled 5% to $48.87 a barrel on easing fears of disruption from conflict in Yemen and the likelihood of a deal in Iran that could increase supply.

European markets ended mixed. FTSE and Spain were down 0.6% and 0.2% respectively while CAC, DAX and Italy gained 0.2%-0.6%

For the week, US indices lost 2.2%-2.7%. European markets lost 0.8%-2.4% with FTSE leading the tally.

                                                             

AT HOME

After falling more than a percent and half from the high made in the initial trade, benchmark indices recovered nearly a percent from the bottom of the day to end flat. Sensex settled at 27459, up 1 point while Nifty finished at 8341, down 1 points. BSE mid-cap index ended marginally higher while the small-cap index lost 0.3%. BSE Capital Goods index and Bankex gained the most among the sectoral indices, rising 1.3% and 1.1% respectively while Oil & Gas and FMCG indices were the top losers, down 1.5% and 1% respectively.

FIIs net sold stocks worth Rs 321 cr but net bought index futures and stock futures worth Rs 392 cr and 142 cr respectively. DIIs were net buyers to the tune of Rs 675 cr.

Rupee appreciated 26 paise to end at 62.41/$.

For the week, Sensex and Nifty lost 2.8% and 2.7% respectively, extending the losing streak to third straight week.

Government on Friday decided to prorogue the Rajya Sabha and repromulgate the Land Ordinance, which lapses on April 5.

OUTLOOK

Today morning Asian markets are up 0.3%-1.3% and SGX Nifty is suggesting about 20 points higher opening for our market.

In Friday's report we had mentioned that oscillators on the hourly and daily chart continue to be negative and further weakness cannot be ruled out and therefore had advised selling into any rally.

The benchmark, after touching a high of 8413 in the initial trade, plunged to 8269 before recovering to end at 8341, vindicating our view.

We had also mentioned that 8322, where the 34 week moving average is placed, is the next support to eye, a close below which can take the benchmark to around 8170, where the 20-DMA is placed. Nifty, while went below 8322 intraday, managed to close above that.

The oscillators on hourly and daily chart however continue to be negative and traders would do well to wait for the crossover of immediate resistance placed around 8510 for initiating fresh longs.

8269, the low made on Friday, is the immediate support, below which 200-DMA, placed around 8175, would be the next major support.

NIFTY ACHIEVES 8404 TARGET, AND MORE

NIFTY ACHIEVES 8404 TARGET, AND MORE

WORLD MARKETS                             

US indices lost about a fourth of a percent amidst geopolitical events and ahead of earnings season.

Nymex crude rose $2.22 or 4.5% to $51.43 a barrel, its highest since March 4 after Saudi Arabia and its Gulf Arab allies began airstrikes in Yemen, sparking fears of a bigger Middle East battle that could disrupt world crude supplies.

Weekly jobless claims fell 9000 to 282000, the lowest level since mid-February. Flash services PMI for March rose to 58.6 from a final reading of 57.1 in February.

Gold rose $8 to $1205 an ounce.

European markets fell 0.2%-1.4%.

AT HOME

On the final day of the March derivative series, benchmark indices nosedived two and a quarter percent, registering worst fall since 6th January and ending at the lowest level since 14th January. Sensex plunged 654 points to settle at 27458 while Nifty finished at 8342, down 189 points. BSE mid-cap and small-cap indices lost 0.8% and 1% respectively. Except a 0.1% higher Capital Goods index, all the BSE sectoral indices ended in red with IT index and Bankex leading the tally, giving away 2.6% and 2.5% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 521 cr, 2167 cr and 1468 cr respectively.

Rupee depreciated 34 paise to end at 62.67/$.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

Readers would recall that ever since Nifty had broken 8670, a lower-top lower-bottom formation on the daily chart came into effect. Since then we had been working with the target of 8404, which was the 61.8% retracement level of the entire 7961-9119 upmove. The benchmark yesterday plunged 189 points to settle at 8642, achieving this target.

However, oscillators on the hourly and daily chart continue to be negative and further weakness cannot be ruled out.

8322 is where the 34-week moving average is placed, a breach of which can take Nifty to the crucial 200-DMA support placed around 8170.

In this scenario, "Sell on Rallies" would be the advise. 8500, the top made yesterday, is the immediate resistance, with the stop loss of which short positions can be held on to.

NIFTY SET TO TEST 8470-8400 SUPPORT AREA

NIFTY SET TO TEST 8470-8400 SUPPORT AREA

WORLD MARKETS                             

US indices plunged 1.5%-2.4%, with Nasdaq posting its steepest fall in a year on the back of continued concerns over upcoming earning seasons and geopolitical tension in Yemen.

Durable goods orders fell 1.4% in February as against expectation of a 0.4% rise.

Saudi Arabia announced it began military operations in Yemen after Yemeni President Abed Rabbo Mansour Hadi reportedly fled Aden as Houthi militants moved closer to the city.

Gold gained $6 to $1197 an ounce. Nymex oil rose $1.70 or 3.6% to $49.21 a barrel.

European markets fell 0.4%-1.3%. Germany's closely watched Ifo business sentiment index rose to 107.9 in March from 106.8 in February and compared with expectations for a reading of 107.3 

AT HOME

After a positive start, benchmark indices saw a gradual downward drift through the session to end modestly lower, extending the losing streak to sixth straight day. Sensex lost 50 points to settle at 28112 while Nifty finished at 8531, down 12 points. BSE mid-cap and small-cap indices lost 0.5% and 0.7% respectively. BSE Capital Goods and Power indices lost 1.6% and 1.2% respectively, becoming top losers among the sectoral indices while Healthcare and Auto indices were the top gainers, putting on 0.5% and 0.3% respectively.

FIIs net bought stocks worth Rs 813 cr but net sold index futures and stock futures worth Rs 1387 cr and 187 cr respectively. DIIs were net buyers to the tune of Rs 96 cr.

Rupee depreciated 7 paise to end at 62.32/$.

OUTLOOK

Today morning Nikkei is down about a percent and half, other Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 60 points lower opening for our market.

Just to reiterate, ever since Nifty broke 6570, which was the 38.2% retracement level of the 7961-9119 upmove, we have been working with the major downside target of 8404, which is the 61.8% retracement level of this upmove. We had also said that before that 8470, the bottom made in February, would be the intermediate target. The benchmark ended at 8530 yesterday and is set to open with a downward gap today, achieving the 8470 target and coming in closer to the 8404 target.

Traders would do well to book profit in short positions in 8470-8404 area as apart from 8404 being important Fibonacci support, a trendline adjoining recent bottoms on the weekly chart is also placed in the vicinity of this level.

Meanwhile, immediate resistance on the hourly chart has moved to around 8590, which should serve as the stop loss for the short positions.

NIFTY CONSOLIDATES WITH A NEGATIVE BIAS; 8650 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY CONSOLIDATES WITH A NEGATIVE BIAS; 8650 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS                             

Dow and S & P 500 lost 0.6% each while Nasdaq fell 0.3% yesterday amid concerns of the dollar's strength on corporate earnings.

February new home sales rose 7.8% to 539,000, the highest level in seven years. Consumer Price Index rose 0.2% in February, in line with expectations.

Dollar index rose to 97.23 from 97. Nymex oil rose 6 cents to $47.51 a barrel.

European markets, except a modestly lower FTSE, gained between 0.7%-1.2%. Eurozone composite PMI jumped to a 46-month high of 54.1 in March, well above forecasts

A Greek government official said that the country was going to present a reform package to the Eurogroup of finance ministers by next Monday.

AT HOME

Benchmark indices ended marginally lower after a choppy trading session, extending the losing streak to fifth straight day. Sensex settled at 28162, down 30 points while Nifty lost 8 points to finish at 8543. BSE mid-cap and small-cap indices lost 0.4% and 0.6% respectively. BSE Healthcare and Consumer Durable indices gained 1.8% and 0.7% respectively, becoming top gainers among the sectoral indices while Auto index and Bankex were the top losers, down 1.2% and 0.6% respectively.

FIIs net bought stocks and index futures worth Rs 738 cr and 421 cr respectively but net sold stock futures worth Rs 349 cr. DIIs were net sellers to the tune of Rs 632 cr.

Rupee appreciated 1 paise to end at 62.26/$.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

As we have been mentioning Nifty is witnessing retracement of the entire 7961-9119 upmove. The benchmark has already retraced 50% of this upmove at 8540 and crucial 61.8% retracement level is placed at 8403. Before that, 8470, the bottom made in Friday, would be the intermediate support to eye.

On the way up, 8650 continues to be immediate resistance, with the stop loss of which short positions can be held on to. Above 8650, 34-DMA, placed around 8740, would be the tougher hurdle to eye.

NIFTY ACHIEVES 8540 TARGET; STAY SHORT WITH THE STOP LOSS OF 8650

NIFTY ACHIEVES 8540 TARGET; STAY SHORT WITH THE STOP LOSS OF 8650

WORLD MARKETS                             

US indices lost 0.1%-0.3% yesterday.

US dollar index fell about 1.5% to 97. Nymex oil rose 88 cents to $47.45 a barrel.

Existing home sales in February were up 1.2%, to an annual rate of 4.88 million units, slightly below expectations.

European markets, except a 0.2% higher FTSE, lost between 0.5%-1.2% with Greece in the spotlight as Greek and German leaders meet amid tensions over Athens' bailout program.

AT HOME

After opening higher by nearly four tenth of a percent, benchmark indices fell about two third of a percent from the top of the day to end lower by a fifth of a percent. Sensex lost 53 points to settle at 28208 while Nifty finished at 8551, down 20 points. BSE mid-cap and small-cap indices lost 0.8% and 1.3% respectively. BSE IT and Teck indices lost 1% and 0.9% respectively, becoming top losers among the sectoral indices while Metal and Auto indices gained 0.2% and 0.1% respectively.

FIIs net bought stocks worth Rs 417 cr but net sold index futures and stock futures worth Rs 427 cr and 100 cr respectively. DIIs were net buyers to the tune of Rs 404 cr.

Rupee appreciated 19 paise to end at 62.26/$.

Jindal Steel plunged after the Coal ministry cancelled coal blocks namely, Gare Palma IV/2, IV/3 and Tara, allocated to the company.

OUTLOOK

China's HSBC flash PMI for March has come in at 49.2, down from 50.7 in February and marking an 11-month low.

Asian markets are trading flat to modestly lower and SGX Nifty is suggesting about 15 points lower opening for our market.

Ever since Nifty broke 8670, we have been working with downside target of 8540 and 8404, which are the 50% and 61.8% retracement levels of the entire 7961-9119 upmove. Yesterday, the benchmark touched a low of 8540 before closing at 8550, achieving the first target mentioned above.

Today's lower opening would see Nifty breaching 8540 mark and moving towards the 8404 target. Before that 8470, the bottom made in February, would be the intermediate target.

Traders are advised to hold short positions with the stop loss of 8650, which is the immediate resistance on the hourly chart.

WORLD EQUITIES, OIL, GOLD RALLY ON FRIDAY AS DOLLAR EASES; RAJYA SABHA PASSES COAL, MINES BILLS

WORLD EQUITIES, OIL, GOLD RALLY ON FRIDAY AS DOLLAR EASES; RAJYA SABHA PASSES COAL, MINES BILLS

WORLD MARKETS

US indices surged 0.7%-0.9% on Friday following a pullback in the U.S. dollar. The Dow Jones industrial average and S&P 500 broke three weeks of consecutive losses to post gains of 2%-3% for the week.

US dollar eased to 97.80 from 99.02 and posted its first weekly loss in five weeks. Nymex crude broke a four-week losing streak to settle up $1.76 or 4% to $45.72 a barrel. Gold rose $15.6 to $1185 an ounce.

European markets gained between 1%-3% with the FTSE 100 above 7,000 for the first time, boosted by strong performance from British energy and basic resources stocks. Also boosting the sentiment was the statement from German Chancellor Angela Merkel said that payments to Greece could begin in tranches if the country's list of reforms was approved.

For the week, European markets gained between 1.2%-4.2%.

                                                             

AT HOME

After a marginally lower start, benchmark indices saw a gradual downward drift through the session to end lower by three fourth of a percent, extending the losing streak to third straight day and closing at the lowest level since 10th February. Sensex lost 209 points to settle at 28261 while Nifty finished at 8571, down 64 points. BSE mid-cap and small-cap indices plunged 1.5% and 2.1% respectively. Except a 0.9% and 0.5% rise in BSE IT and Teck indices respectively, all other sectoral indices ended in red with Realty index leading the tally, falling 3.7%, followed by 2.1% cut in Power and FMCG indices.

FIIs net bought stocks worth Rs 355 cr but net sold index futures and stock futures worth Rs 575 cr and 19 cr respectively. DIIs were net sellers to the tune of Rs 219 cr.

Rupee appreciated 6 paise to end at 62.46/$.

For the week, Sensex and Nifty lost 0.9% each, extending the losing streak to second straight week.

Rajya Sabha on Friday passed MMDR (Mines and Minerals Development & Regulation Amendment bill) and the Coal Mines (Special Provisions Bill, 2015. This opens up coal mining to Indian and foreign private companies and allow transparent auction of coal, bauxite and other minerals.

The government on Friday introduced Black money Bill, specifically dealing with illicit money stashed in foreign banks abroad, providing for separate taxation of any undisclosed foreign income or assets, in a bid to curb the generation of black money in the country.

OUTLOOK

Today morning Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting about 10 points higher opening for our market.

Ever since Nifty broke 8670 support on 13th March, we have been working with downside targets of 8540 and 8404, which are the 50% and 61.8% retracement levels of the entire 7961-9120 upmove.

Nifty on Friday touched a low of 8553 before closing at 8570, coming closer to the 8540 target.

8540 followed by 8403, continue to be support levels to eye on the way down. Immediate resistance on the hourly chart is placed around 8670, with the stop loss of which trading shorts should be held on to.

NIFTY FAILS 34-DMA TEST

NIFTY FAILS 34-DMA TEST

WORLD MARKETS                             

US indices ended mixed yesterday with Dow and S & P 500 losing 0.6% and 0.5% respectively while Nasdaq gained 0.2%

Weekly jobless claims rose slightly to 291,000 for the week ended March 14. The national current account deficit sharply widened in the fourth quarter to the largest level since 2012. The Philly Fed index showed a modest increase in manufacturing in March but indicated the lowest level of growth in more than a year. Leading indicators rose 0.2 percent, in-line with estimates.

Apple officially began trading as a member of the Dow Jones industrial average on Thursday, replacing AT&T in the index.

US dollar recovered from 97.67 to 99.02 as the euro fell from $1.084 to trade just above $1.06.

Nymex crude fell 70 cents or 1.57% to $43.96 a barrel after OPEC news renewed fears of oversupply. Gold rose $17.70 to $1169 an ounce.

European markets, except a modestly lower DAX, gained upto 1.1% with Italy leading the tally. A two-day European Union (EU) summit began yesterday, at which the Greek debt crisis is expected to top the agenda. Greek bond yields jumped on news that the European Central Bank was considering curbs on Greek bank purchases of government debt.

AT HOME

After gaining more than a percent in the initial trade, benchmark indices nosedived more than a percent and half from the top of the day to end lower by about half a percent. Sensex settled at 28470, down 152 points while Nifty finished at 8635, down 51 points. BSE mid-cap and small-cap indices lost 0.6% each. Except a 0.5% rise in BSE Consumer Durable index, all other sectoral indices ended in red with Bankex and Realty index leading the tally, giving away 1.8% and 1.5% respectively.

FIIs net bought stocks, index futures and stock futures worth Rs 1429 cr, 171 cr and 448 cr respectively. DIIs were net buyers to the tune of Rs 53 cr.

Rupee appreciated 17 paise to end at 61.52/$.

Rajya Sabha had to defer the consideration of Mines and Minerals Bill and Coal bill due to opposition from Congress and Left on the issue that mines is a state subject and states have not been consulted on mines bill.

OUTLOOK

Today morning Asian markets are trading with modest cuts and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had mentioned that after a gap up opening, Nifty would be close to the important 34-DMA resistance placed around 8770, a decisive crossover of which is required for the further upmove.

The benchmark touched a high of 8788 in the initial trade but could not sustain there and plunged all the way to end at 8635.

34-DMA, which has now moved to 8760, continues to be important hurdle, a close above which is required to put bulls in the dominating position. On the way down, 8540 and 8404, the 50% and 61.8% retracement levels of the 7961-9119 upmove, are the support levels to eye.

Traders can initiate fresh short positions once Nifty trades below 8612, the bottom made on Monday, with the stop loss of 8690, the immediate resistance on the hourly chart.

The Lok Sabha is likely to take up today the cabinet-approved anti-black-money bill that proposes a short window to overseas income tax assesses to declare assets, pay tax and penalty and avoid imprisonment.

US EQUITIES SURGE ON DOVISH FED; NIFTY TO GIVE 34-DMA TEST YET AGAIN

US EQUITIES SURGE ON DOVISH FED; NIFTY TO GIVE 34-DMA TEST YET AGAIN

WORLD MARKETS                             

US indices climbed between 0.9%-1.3%, cheering the Federal Reserve's statement that indicated a rate hike would come later rather than sooner.

The Fed, in a statement after its two-day meeting, dropped an assurance that it would remain “patient” before acting on rates. The central bank however said that it won't tighten policy until it is "reasonably confident" inflation will return to its target and the labor market improves further. Also Fed officials lowered their estimate for where the federal funds rate will be by end-2015 to 0.625% from a December forecast of 1.125%, suggesting that interest rate hikes would be quite gradual.

“Just because we removed the word patient from the statement doesn’t mean we are going to be impatient,” Ms. Yellen said in a postmeeting press conference.

Dollar index fell 2% to 97.67, suffering its worst daily drop in six years, with euro climbing above $1.09. US 10-year yield fell to 1.93%. Nymex oil rose $1.46 to $46.65 a barrel. Brent soared 4.5% or $2.40 to $55.91.

European markets ended mixed. FTSE climbed 1.6% on an increased economic growth forecast of 2.3% for the United Kingdom, as finance minister George Osborne also signaled plans to scale back austerity measures. Germany and Italy lost 0.5% and 0.7% respectively while France ended flat.

AT HOME

Benchmark indices ended lower by four tenth of a percent after a choppy trading session. Sensex lost 114 points to settle at 28622 while Nifty finished at 8686, down 37 points. BSE mid-cap and small-cap indices however gained 0.3% each. BSE Power and IT indices lost the most among the sectoral indices, losing 1.1% and 0.9% respectively while Oil & Gas index and Bankex gained 0.7% and 0.5% respectively.

FIIs net sold stocks and index futures worth Rs 457 cr and 525 cr respectively but net bought stock futures worth Rs 1311 cr. DIIs were net sellers to the tune of Rs 883 cr.

Rupee appreciated 1 paise to end at 62.69/$.

Rajya Sabha Select Committees on Mines and Minerals Amendment Bill and Coal Mines Bill yesterday recommended their approval without any change.

OUTLOOK

Today morning Nikkei is down nearly a percent as the yen has strengthened Vs the dollar. Other Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting about 60 points higher opening for our market.

After today's gap up opening, Nifty would be closer to the 34-DMA placed around 8770, a  crossover of which would pave the way for the further upside till about 8925, which is the 61.8% retracement level of the recent 9119-8612 fall. 8600 continues to be important support on the way down.

NIFTY HEADED TO KEY 34-DMA HURDLE; FED IN FOCUS

NIFTY HEADED TO KEY 34-DMA HURDLE; FED IN FOCUS

WORLD MARKETS

US indices ended mixed with Dow and S & P 500 losing 0.7% and 0.4% respectively while Nasdaq gained 0.2% ahead of the Federal Open Market Committee's statement that could shed light on the timing of an interest rate hike.

Housing starts fell 17% in February to the lowest level in a year as harsh winter weather took its toll. More encouragingly, building permits rose 3% and January housing starts were revised slightly higher to 1.08 million.

Nymex crude fell 42 cents to $43.46 a barrel, the lowest since March 2009. Dollar index continued to ease, falling about 1% while the Euro briefly edged above $1.06.

European markets, except a half a percent higher FTSE, fell between 06%-1.5%. Closely watched economic sentiment figure from the ZEW institute for Germany came in at 54.8 in March, which was the highest reading since February 2014, but below forecasts for a reading of 58.2. Eurozone inflation for February was confirmed at -0.3% y-o-y.

AT HOME

After gaining more than a percent in the morning trade, benchmark indices plunged to trade flat at one point of time, but recouped all the lost ground in lat hour of trade to end higher by a percent. Sensex soared 299 points to settle at 28736 while Nifty finished at 8723, up 90 points. BSE mid-cap and small-cap indices gained 0.6% and 0.2% respectively. Except a 0.3% and 0.2% cut in BSE IT and Teck indices respectively, all other sectoral indices ended higher with Healthcare and Capital Goods indices leading the tally, putting on 1.8% and 1.7% respectively.

Jindal Steel plunged after media reports suggested that the government is expected to reject two bids from the company for Gare Palma and Tara coal blocks citing "very low" bids and talk of cartelization. 

FIIs net bought stocks and stock futures worth Rs 266 cr and 799 cr respectively but net sold index futures worth Rs 487 cr. DIIs were net sellers to the tune of Rs 244 cr.

Rupee appreciated 10 paise to end at 62.70/$.

OUTLOOK

Today morning, Hang Seng and Taiwan are higher by about a percent, other Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 40 points higher opening for our market.

In yesterday's report we had mentioned that immediate hurdle on the hourly chart is placed at 8720 above which 34-DMA, placed around 8780 would be the next hurdle to eye.

The benchmark yesterday ended at 8723, taking out the first hurdle and is now headed to tougher one at 8780. A crossover of 8780 can then pave the way for the further upside till about 8925, which is the 61.8% retracement level of the 9117-8612 fall.

On the way down, 8600, the bottom made on Monday is the important support to eye.

The FOMC's two-day meeting kicked off Tuesday, with its highly anticipated statement and press conference expected on Wednesday afternoon. Investors are looking at whether or not "patient" remains in the text as an indication of when short-term interest rates might go up.

EQUITIES GET A STIMULUS BOOST; OIL TUMBLES ON SUPPLY CONCERNS

EQUITIES GET A STIMULUS BOOST; OIL TUMBLES ON SUPPLY CONCERNS

WORLD MARKETS

US indices soared nearly 1.3% each, cheering a fall in dollar and eyeing Wednesday's key Fed meeting.

The US dollar index fell nearly 1% yesterday to trade below 100. Nymex oil fell 96 cents to $43.88 a barrel, its lowest in six years. Brent tumbled $1.23 to $53.44.

Industrial production rose 0.1% in February, below expectations, with capacity utilization slightly lower at 78.9%. The Empire State Index posted 6.90 for March, below February's 7.78.  Home builder confidence fell two points to 53 in March, down from a high of 59 last September.

European markets surged between 1%-2.2% with DAX leading the tally and hitting a record, as extra liquidity provided by the European Central Bank (ECB) in the region continued to boost the sentiment.

Earlier Shanghai equities surged to five-year highs with China's Premier Li Keqiang suggesting more stimulus.

AT HOME

Benchmark indices ended lower by about a fifth of a percent after a rangebound but choppy trading session, closing at fresh one-month low. Sensex lost 66 points to settle at 28438 while Nifty finished at 8633, down 15 points. BSE mid-cap and small-cap indices lost 0.3% and 0.9% respectively. BSE Metal and FMCG indices lost 1.5% and 1% respectively, becoming top losers among the sectoral indices while IT and Realty indices were the top gainers, putting on 1.2% respectively.

Inflation, as measured by the wholesale price index fell to a steep -2.06% in February, marking the fourth straight month of deflation. The figure for December was revised to -0.5% from 0.11%. FIIs net sold stocks and index futures worth Rs 763 cr and 140 cr respectively but net bought stock futures worth Rs 277 cr. DIIs were net buyers to the tune of Rs 159 cr.

Rupee appreciated 16 paise to end at 62.80/$.

Advance tax numbers for the January-March quarter figures have shown a healthy growth for Banks. SBI, ICICI Bank and Yes Bank have paid 20%, 32% and 30% jump respectively. On the flip side L & T and M & M have paid 41% and 36% less. Reliance Industries has seeen 17% rise. TCS has seen a near-flat deposit.

OUTLOOK

Today morning Asian markets are trading with gain ranging from 0.2%-1.2% and SGX Nifty is suggesting about 50 points higher opening for our market.

While Nifty is set to open higher today, it has many hurdles to negotiate on the way up. Immediate resistance on the hourly chart is placed at 8720 above which 34-DMA, placed around 8785 would be the next hurdle to eye.

On the way down, lower band of bollinger, placed around 8600, is providing a floor to the benchmark. A breach of this would open up the space for further correction till about 8540 and then to 8403, which are 50% and 61.8% retracement levels of the 7961-9119 upmove.

The Federal Open Market Committee holds its March meeting over the next two days, with the release of its statement on Wednesday. Investors are watching to see if the key word "patient" remains in the statement, an indication of when short-term interest rates might go up.

NIFTY TUMBLES AFTER GETTING RESISTED EXACTLY AT 8850

NIFTY TUMBLES AFTER GETTING RESISTED EXACTLY AT 8850

WORLD MARKETS

US indices fell between 0.4%-0.8% on Friday on dollar surge and oil plunge.

Dollar index rose more than half a percent to a new 52-week high, for its first close above 100 since April 2003. The euro extended losses to fall below $1.05.

Nymex oil fell $2.21 or 4.7% to $44.84 a barrel.

The Dow and S&P 500 posted their third week of declines, losing 0.6% and 0.9% respectively, while the Nasdaq closed lower for the second straight week, down 1.1%.

The U.S. Producer Price index for February showed a decline of 0.5%, missing estimates of a 0.3% gain. Consumer sentiment data showed a preliminary read of 91.2 in March versus 95.4 in February.

In Europe, FTSE and Italy fell about a third of a percent while DAX, CAC and Spain ended higher.

Central Bank of Russia cut key rate by 1% to 14% on Friday, in an effort to stimulate the country's sanctions-hit economy.

AT HOME

After a gap up opening, benchmark indices nosedived more than 2% from the top of the day to end lower by a percent and half and closing at one-month low. Sensex plunged 427 points to settle at 28503 while Nifty finished at 8648, down 128 points. BSE mid-cap and small-cap indices lost 1.4% and 1.5% respectively. All the BSE sectoral indices ended in red with Capital Goods index leading the tally with 2.6% fall, followed by 1.9% cut in FMCG index and Bankex.

 For the week, Sensex and Nifty lost 3.2% each, registering largest weekly fall in 3-months.

FIIs net bought stocks, index futures and stock futures worth Rs 67 cr, 5 cr and 901 cr respectively. DIIs were net sellers to the tune of Rs 68 cr.

Rupee fell 47 paise to end at 62.96/$.

India's trade deficit in February narrowed to $6.84 bn from $8.31 bn in January as imports dipped 15.66% to $28.39 bn while exports fell 15.02% to $21.54 bn.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 30 points lower opening for our market.

In Friday's report we had mentioned that the immediate resistance on the hourly chart is placed at 8850, a sustained trading above which is required to generate a buy on the hourly chart.

The benchmark, in a gap up opening on Friday, opened exactly at 8850, from where it sold off sharply to end at 8648.

8850 continues to immediate hurdle. On the way down, by closing below the immediate previous bottom of 8670, the benchmark has broken the higher-top higher-bottom formation on the daily chart which has opened up the space for the further retracement of the entire 7961-9119 upmove. 8540 and 8403, the 50% and 61.8% retracement levels of this upmov, would be the downside targets to eye.

India’s WPI for February would be released today and is expected to show a contraction of 0.65% as against contraction of 0.39% in January.

IT’S A DONE DEAL FOR INSURANCE BILL, FINALLY

IT’S A DONE DEAL FOR INSURANCE BILL, FINALLY

WORLD MARKETS

US indices surged 0.9%-1.5% yesterday, with the Dow and S & P 500 turning positive for the year, on the back of a weaker dollar and as mixed economic data tapered expectations that the Federal Reserve will hike rates mid-year.

Retail sales for February fell 0.6%, missing expectations of a slight gain. Weekly jobless claims fell more than expected to 289,000, below the prior week's 320,000.

Import prices for February rose 0.4%, versus a revised decline of 3.1% in January. Export prices declined 0.1%, less than January's decline of 1.9%.

Dollar index fell about half a percent, pausing its recent rally. The euro edged higher to $1.06, up from 12-year lows hit yesterday.

Nymex crude fell 2.3% to $47.05 a barrel. Brent fell 50 cents to $57 a barrel.

European markets, except a 0.6% higher FTSE, ended with modest cuts.

                                                             

AT HOME

After a gap up opening, benchmark indices added some more gains through the session to end higher by about nine tenth of a percent, breaking 3-day losing streak. Sensex gained 271 points to settle at 28930 while Nifty finished at 8776, up 76 points. BSE mid-cap and small-cap indices gained 1.2% and 0.9% respectively. All the BSE sectoral indices ended in green with Power and Consumer Durable indices leading the tally, putting on 2.3% and 1.5% respectively.

FIIs net bought stocks and index futures worth Rs 733 cr and 126 cr respectively but net sold stock futures worth Rs 99 cr. DIIs were net sellers to the tune of Rs 382 cr.

Rupee appreciated 28 paise to end at 62.50/$.

In a major boost to the government’s reform agenda, the Rajya Sabha yesterday gave the go-ahead to the insurance bill, raising the ceiling for foreign investment in insurance companies to 49% from 26%. The move to increase the foreign investment cap in insurance companies will kick-start the industry, which has been struggling for lack of capital. It would also boost infrastructure funding since only an insurance corpus can fund long-gestation public works projects.

February Consumer Price Index (CPI) rose to 5.37% Vs 5.11% in January mainly due to a spike in food inflation. IIP for January came in at 2.6%, much higher than the estimated 0.47% and better than 1.7% in December.

OUTLOOK

Today morning Nikkei is up more than a percent, crossing the 19000 mark and touching a fresh 15-year high. Other Asian markets are trading with gains in the vicinity of half a percent and SGX Nifty is suggesting about 55 points higher opening for our market.

After Nifty nearly achieved the downside target of 8670 on Tuesday, we had advised booking profit in short positions and remain on sideline till downside support placed at 8670 or the immediate resistance placed at 8850 are crossed.

After today's gap up opening, benchmark will be closer to the 8850 resistance, a sustained trading above which would generate a buy on the hourly chart and open up the space for the further upside till about 8950.