14350 BELOW 14525; 14900 CONTINUES TO BE IMMEDIATE HURDLE

 

14350 BELOW 14525; 14900 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow ended flat while S & P 500 and Nasdaq fell 0.6% and 2% respectively as tech stocks plunged. Even Dow slipped nearly a percent from the top of the day as reopening trades like airlines and cruise operators reversed earlier strength.

 

The 10-year Treasury yield dipped 3 bps to 1.61%, falling for a third day.

 

Treasury Secretary Yellen and Fed Chair Powell appeared for a second day of testimony before federal lawmakers. Both reiterated their belief that, thanks in large part to fiscal and monetary stimulus, the U.S. economy will see marked growth in 2021.

 

The Markit flash manufacturing PMI for March came in at 59.0, below the 59.8 expectation. Durable goods orders showed a surprise decline.

 

Dollar index rose to 92.59 and hit a four-month high. Spot gold rose 0.4% to $1,733.39 per ounce.

 

Brent crude surged $3.69, or 6%, to $64.48 a barrel, while WTI climbed $3.53, or 6.1%, to $61.29, after a ship ran aground in the Suez Canal, raising concerns that the incident could tie up crude shipments. Also, U.S. inventory figures showed a further rebound in refining activity.

 

In Europe, FTSE rose 0.2%, CAC was flat while DAX fell 0.4%. IHS Markit’s composite PMI for Eurozone came in at 52.5 for March, up from 48.0 in February. The U.K. equivalent rose to 56.6 in March from 49.6 in February, significantly outpacing expectations.

 

AT HOME

 

Bears were back after a 3-day pause as benchmark indices nosedived just under 2%, suffering their worst fall in nearly a month. Sensex settled at 49180, down 871 points while Nifty lost 265 points to finish at 14549. Nifty mid-cap and small-cap indices slipped 2% and 2.1% respectively. All the BSE sectoral indices ended in red, with Realty and Metal indices leading the losses, down 2.9% and 2.8% respectively. 47 out of 50 Nifty stocks closed lower.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1952 cr, 1677 cr and 727 cr respectively. DIIs were net buyers to the tune of Rs 613 cr.

 

Rupee depreciated 14 paise to end at 72.56/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.3% while Hang Seng and Shanghai are down nearly half a percent each.  SGX Nifty is suggesting around 25 points lower start for our market.

 

Readers would recall that we had turned our view on Nifty negative after 15060 was breached and have been advising holding on to short positions with a trailing stop-loss.

 

In yesterday's report we had reiterated the view that 14900 continued to be immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.

 

Nifty, after touching a high of 14878 on Tuesday, plunged to make a low of 14535, vindicating our view.

 

14525, the two-third retracement level of the recent 14350-14878 upmove, is the immediate support to eye, below which, 14350, the bottom made on 19th March, would be the crucial support.

 

14900 continues to be immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts can be held on to.