NIFTY HOLDS 7582 SUPPORT; 7710 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY HOLDS 7582 SUPPORT; 7710 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS                             

US indices gained 0.6%-1.6% yesterday following the release of the most recent Fed meeting minutes. Healthcare and Energy stock lead the gainers. Nasdaq Composite closed at its highest level of 2016.

The Federal Open Market Committee March meeting minutes showed several policymakers expressed caution over April hike, while some said an April hike might be warranted.

Nymex oil soared $1.86 or 5.2% to $37.75 a barrel after weekly crude inventories from the EIA showed a draw of 4.9 million barrels. Brent added $1.97 to $39.84.

Pharma stocks gained after Pfizer and Allergan announced they are to mutually terminate their merger.

US dollar index, after touching its lowest level since October 2015, recovered a bit to end at 94.24. Yen touched a level of 109.4, the highest since October 2014.

Earlier data showed that China's service sector strengthened in March, with the Caixin services purchasing managers' index (PMI) for March rising to 52.2, up from February's reading of 51.2.

European markets rose 0.6%-1.2%. German industrial output fell 0.5% month-on-month in February after rising 2.3% in January. The figure however was better-than-expected.

AT HOME

Benchmark indices ended marginally higher after a rangebound trade. Sensex settled at 24901, up 17 points while Nifty added 11 points to finish at 7614. BSE mid-cap and small-cap indices gained 0.6% and 0.9% respectively. BSE Basic Material and Metal indices soared 2.6% and 2.3% respectively, becoming top gainers among the sectoral indices while IT index and Bankex were the top losers, down 0.5% and 0.4% respectively.

FIIs net sold stocks and index futures worth Rs 494 cr and 770 cr respectively but net bought stock futures worth Rs 506 cr. DIIs were net buyers to the tune of Rs 259 cr.

Rupee depreciated 20 paise to end at 66.66/$.

OUTLOOK

Today morning Asian markets are trading flat to modestly higher and SGX Nifty is suggesting a flattish opening for our market.

In yesterday's report we had mentioned that after Tuesday's steep fall, Nifty is close to 7582 bottom made last week upon breach of which, next support to eye would be about 7480, where the previous bottom on hourly chart made on 17th March is placed.

The benchmark, after touching a low of 7592, rebounded to end at 7614.

7582 continues to be immediate support, upon breach of which, 7480, as mentioned above, would be the next support to eye. Meanwhile, 7710 continues to be immediate hurdle, with the stop loss of which existing shorts can be held on to.