14760 BELOW 14900; 15273 IS THE IMMEDIATE HURDLE

 

14760 BELOW 14900; 15273 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices tumbled 1.1%-2.1% as bond yields surged after Federal Reserve Chairman Jerome Powell’s remarks. Nadaq turned negative for the year.

 

Powell said there was potential for a temporary jump in inflation and that he had noticed the recent rise in yields but added the Fed would need to see a broader increase across the rate spectrum before considering any action. Powell also didn’t make a strong hint of any changes in asset purchases by the Fed to contain the rapid increase in rates.

 

The yield on the benchmark 10-year Treasury note rose to 1.541% while that on the 30-year Treasury pushed higher to 2.304%. Dollar index rose 0.53% to 91.561, it's highest in 3 months. Spot gold fell 0.9% to $1,695.26 per ounce, it's lowest in near nine months.

 

Initial jobless claims came in at 745,000, roughly in line with the expected 750,000 level. Factory orders for January came in at 2.6% growth, beating expectations of 2.3%.

 

Brent crude jumped $2.68, or 4.2%, to $66.73 and WTI crude futures advanced $2.49, or 4%, to $63.78 per barrel after OPEC and its oil-producing allies said the group would keep production largely steady through April and Saudi Arabia said that it would extend its one million barrels per day voluntary production cut into April.

 

In Europe, FTSE and DAX fell 0.4% and 0.2% respectively whie CAC was flat. The IHS Markit/CIPS UK construction PMI rose to 53.3 from 49.2 in January, returning to expansion and outstripping expectations. Euro zone retail spending fell 5.9% month-on-month in January and fell significantly short of average forecasts for a 1.1% contraction.

 

AT HOME

 

Benchmark indices slipped 1.1% each, snapping 3-day winning streak. Sensex settled at 50846, down 599 points while Nifty lost 165 points to finish at 15080. Nifty mid-cap and small-cap indices however, gained 0.5% and 1.2% respectively, with the former hitting fresh record high. BSE Metal index tumbled 2.3%, becoming top loser among the sectoral indices, followed by 1.4% lower Bankex and Finance indices. Power and Utilities indices were the top gainers, up 0.6% and 0.5% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 223 cr, 2265 cr and 1488 cr respectively. DIIs were net sellers to the tune of Rs 788 cr.

 

Rupee depreciated 12 paise to end at 72.83/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-1.7% and SGX Nifty is suggesting around 150 points lower start for our market.

 

In yesterday's report we had said that 14995-14959, the gap created by Wednesday's gap-up opening, would act as immediate support.

 

Nifty, after touching a low of 14980, rebounded to end at 15080 but is set to open below 14950 today.

 

14959 is where the lower end of Wednesday's gap-up opening is placed while 14900 is where 34-hour moving average is placed. This makes 14960-14900 immediate support zone for Nifty. If 14900 breaks, 14760, the bottom made on Tuesday, which also coincides with the 34-DMA would be the next support. 15273, the top made Wednesday, continues to be the immediate hurdle, upon crossover of which, 15431, the top made on 16th February, would the next upside level to eye.

 

In the US, key monthly jobs report will be out today and is expected to show an addition of 210,000 payrolls in February, compared to just 49,000 in January.