NIFTY REBOUNDS FROM THE VICINITY OF 9160 SUPPORT

NIFTY REBOUNDS FROM THE VICINITY OF 9160 SUPPORT

WORLD MARKETS                             

US indices recovered from the morning session lows to end with cuts of upto 0.24% amidst rising geopolitical tensions.

North Korean said it was watching every move made by "enemy elements" and that its "nuclear sight (was) focused on the U.S. invasionary bases."

The development takes place as a U.S. aircraft carrier group makes its way toward the western Pacific following multiple missile launches from North Korea earlier in this year.

U.S. President Trump tweeted that "North Korea is looking for trouble," adding that the U.S. would solve the problem with or without the help of China.

Recovery happened after President Donald Trump told a group of executives that his administration was looking to revamp Dodd-Frank, which might be eliminated and replaced with "something else

Safe haven Gold jumped $20 to $1274 per ounce, it's highest since November 2016, while the benchmark 10-year note yield slipped to 2.30%. Dollar index fell to 100.71 from 101.

Oil ended marginally higher after data from American Petroleum Institute showed that crude inventories had fallen by 1.3 million barrels in the week ending April 7, compared to the 87,000 barrel increase expected.

European markets, except a 0.2% higher FTSE, lost upto half a percent. U.K. inflation stood at 2.3% in March and maintained a four-year high as seen in February. Germany's ZEW monthly survey showed economic sentiment surged up from 12.8 points to 19.5, its highest level since August 2015.

AT HOME

Benchmark indices gained about two third of a percent to break three-day losing streak. Sensex added 212 points to settle at 29788 while Nifty finished at 9237, up 56 points. BSE mid-cap and small-cap indices gained 0.4% and 1% respectively. Except a 1.6% and 0.3% cut in Metal and Basic Material indices respectively, all the BSE sectoral indices ended in green with FMCG and Capital Goods indices leading the tally, up 1.6% and 1.5% respectively.

FIIs net sold stocks and index futures worth Rs 751 cr and 166 cr respectively but net bought stock futures worth Rs 605 cr. DIIs were net buyers to the tune of Rs 827 cr.

Rupee depreciated 8 paise to end at 64.63/$.

The Lok Sabha yesterday passed Motor Vehicle Act 2016.

OUTLOOK

Today morning, Nikkei is down more than a percent, other Asian markets are trading with cuts of upto 0.4% and SGX Nifty is suggesting about 25 points lower start for our market.

As readers would recall, 9180-9160 is the immediate support zone, with the stop-loss of which we have been advising holding on to trading longs. Yesterday, the benchmark, after touching a low of 9173, rebounded to end at 9237 but is slated to open around 9200 today.

9160, where 20-DMA as well a trendline adjoining two recent bottoms on daily chart is placed, continues to be immediate support to eye.

                                         

9274, the top made last week, continues to be immediate hurdle, above which 9400 would be the next target to eye.

IIP for February will be released today and is expected to show a growth of 1.8%, down from previous month’s 2.7%. CPI for March is expected at 3.97%, up from February’s 3.65%.