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.