14900 CONTINUES TO BE IMMEDIATE HURDLE

 

14900 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices plunged 0.8%-1.1% on concerns that rising new coronavirus cases in the U.S. and abroad could delay the economic recovery.

 

WHO said many regions of the world are seeing rising Covid-19 cases as highly contagious variants continue to spread. Nearly a third of France entered a month-long lockdown on Saturday and Germany is extending its lockdown until April 18.

 

Fed Chair Powell and Treasury Secretary Yellen made their first joint appearance in front of the U.S. House Committee on Financial Services on to discuss their response to the coronavirus pandemic. Powell said that the economic recovery from the pandemic had “progressed more quickly than generally expected and looks to be strengthening.”

However, he said that the sectors of the economy hardest-hit by the pandemic “remain weak” and the unemployment rate “underestimates the shortfall,” so the recovery still had a long way to go.

 

The yield on the benchmark 10-year Treasury note fell 6 bps to 1.615% while that on the 30-year Treasury bond dipped more than 5 basis points to 2.326%.

 

The dollar index rose 0.65% to 91.8. Spot gold fell 0.6% to $1,727.31 per ounce.

 

Brent crude plunged $2.61, or 4%, to $62.01 a barrel while WTI crude futures fell by $2.71, or 4.4%, to $58.85.

 

In Europe, DAX was flat while FTSE and CAC fell 0.4% each. U.K. unemployment rate unexpectedly fell by a tenth of a percentage point to 5% in the three months to January.

 

AT HOME

 

Benchmark indices ended higher by nearly half a percent after a rangebound but choppy session. Sensex settled at 50051, up 280 points while Nifty added 78 points to finish at 14814. Nifty mid-cap and small-cap indices rose 0.9% and 0.4% respectively, extending the winning streak to third straight day. BSE Bankex and Industrials indices were the top gainers among the sectoral indices, rising 1.5% and 1.2% respectively while Metal index was the top loser, down 0.7%, followed by 0.4% lower FMCG and Oil & Gas indices.

 

FIIs net sold stocks worth Rs 108 cr but net bought index futures and stock futures worth Rs 440 cr and 51 cr respectively. DIIs were net sellers to the tune of Rs 530 cr.

 

Rupee depreciated 5 paise to end at 72.42/$.

 

Supreme Court directed that no compound or penal interest be charged during the six-month loan moratorium period announced last year amid the COVID-19 pandemic and the amount already charged shall be refunded, credited or adjusted. The apex court refused to interfere with the Centre and RBI's decision to not extend the loan moratorium beyond 31 August last year, saying it is a policy decision.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.4%-1.4% and SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had reiterated the view that 14900 continued to be immediate hurdle on the hourly chart while 14350, the low made last week, continued to be important support.

 

Nifty, after touching a high of 14878, closed at 14814, and is set to open near 14750 today.

 

14900 continues to be immediate hurdle, upon crossover of which, 15051 and 15336, the tops made last week and the week before that respectively, will be the next upside targets to eye.

 

14597, the low made on Monday, is the immediate support, below which, 14350, the low made last week, would be the crucial support.

 

Meanwhile, trading shorts can be held on to with the stop-loss of 14900.