NIFTY RESISTED NEAR 34-WEEK MOVING AVERAGE

NIFTY RESISTED NEAR 34-WEEK MOVING AVERAGE

WORLD MARKETS                             

Dow and S & P 500 ended marginally higher while Nasdaq lost 0.1% yesterday.

Consumer spending rose 0.1% in February, after January's figure was revised lower to show a 0.1% gain versus the previously reported 0.5% rise. Personal income rose 0.2%. Excluding food and energy, prices gained 0.1% after advancing 0.3% in January. In the 12 months through February, the core PCE price index increased 1.7% after a similar increase in January. Pending home sales index rose 3.5% to 109.1 last month, the highest level in seven months. January's reading was revised to show a 3% decline, which was deeper than initially reported.

The advance February goods trade deficit came in wider than estimated at $62.86 billion. This, along with the downward revision in January consumption prompted several cuts to first-quarter GDP estimates. On Friday, third GDP estimate for the fourth quarter showed an annual growth rate of 1.4% instead of the previously reported 1.0% pace.

Nymex oil settled down 0.2% at $39.39 a barrel. Dollar index fell for the first time in six sessions.

European markets were closed for Easter Monday.

AT HOME

After a flattish start, benchmark indices saw a sustained downward move through the session to end with deep cuts of nearly a percent and third, breaking six-day winning streak. Sensex lost 371 points to settle at 24966 while Nifty ended at 7615, down 101 points. BSE mid-cap and small-cap indices fell 1.4% and 1.6% respectively. All the BSE sectoral indices ended in red with Realty and Metal indices leading the tally, down 4.3% and 3.9% respectively.

FIIs net bought stocks worth Rs 2043 cr but net sold index futures and stock futures worth Rs 161 cr and 1787 cr respectively. DIIs were net sellers to the tune of Rs 2494 cr.

Rupee appreciated 6 paise to end at 66.58/$.

Defence Minister Manohar Parrikar yesterday unveiled the much-awaited Defence Procurement Procedure, saying it will ensure transparency and speed in acquisition process and boost the ‘Make in India’ initiative to reduce dependence on exports.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points higher opening for our market.

Just to reiterate, we have been working with the target of 34-week moving average ever since 7540-7600 hurdle was taken out. Nifty yesterday touched a high of 7749, coming in very close to 34-week moving average, which is now placed around 7765, but witnessed sever profit booking from there to end at 7615.

In intraday trade, the benchmark touched a low of 7588, breaking the immediate support of 7600 and generating a sell on the hourly chart.

A breach of 7588 would open up the space for the further downside till about 7400, which is the 38.2% retracement level of the 6826-7749 pullback rally.

On the way up 7765, the 34-week moving average continues to be major resistance to eye, a crossover of which is required for fresh upmove.