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.