ALL EYES ON FED

 

ALL EYES ON FED

 

WORLD MARKETS

 

Dow and S & P 500 eased 0.4% and 0.2% respectively while Nasdaq inched up 0.1%, awaiting the outcome from the Federal Reserve’s two-day policy meeting and comments from Fed Chair Jerome Powell due Wednesday. Dow snapped a seven-day winning streak.

 

Markets will closely watch Fed, to see if it tweaks its interest rate outlook or signals how soon it might pare back of its bond buying program. The Fed will release new economic and interest rate forecasts, which could show Fed officials expect to raise rates by 2023.

 

February retail sales fell by more than expected, down 3%, however, January’s retail sales figures was revised upward to a 7.6% jump from a 5.3% increase.

 

Meanwhile, Germany, Spain and France also suspended use of the AstraZeneca-University of Oxford vaccine over blood clot concerns, although the World Health Organization said there was no established link to the vaccine.

 

Brent fell 49 cents to $68.39 per barrel while U.S. crude slid 59 cents, or 0.9%, to settle at $64.80 per barrel. Crude inventories increased by 12.8 million barrels in the week to March 5, against expectations for a rise of less than 1 million barrels.

 

The yield on the benchmark 10-year Treasury note rose to 1.62% while that on the 30-year note rose to 2.38%. The dollar index rose 0.1%. Spot gold fell 0.2% to $1,729.21 per ounce.

 

European markets gained 0.3%-0.8%.

 

AT HOME

 

After rising around three fourth of a percent in the initial trade, benchmark indices gave away all the gains to end marginally in the red, extending the losing streak to third straight day. Sensex settled at 50363, down 31 points while Nifty lost 19 points to finish at 14910. Nifty mid-cap and small-cap indices however, gained 0.4% and 0.3% respectively. BSE IT and Teck indices rose 1.4% and 1.1% respectively, becoming top gainers among the sectoral indices, while Bankex was the top loser, down 1%, followed by 0.7% lower Finance index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1692 cr, 275 cr and 293 cr respectively. DIIs were net sellers to the tune of Rs 1169 cr.

 

Rupee depreciated 8 paise to end at 72.55/$.

 

OUTLOOK

 

Today morning, Shanghai is down 0.6% while Nikkei and Hang Seng are marginally higher. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 14745, the low made Monday, was the immediate support while 15060 was the immediate hurdle on the hourly chart, with the stop-loss of which, trading shorts could be held on to.

 

Nifty, after touching a high of 15051, slipped to end at 14910.

 

14745, the low made Monday, which also coincides with two-third retracement level of the recent 14467-15336 upmove, continues to be immediate support to eye.

 

15060 continues to be immediate hurdle on the hourly chart, upon crossover of which, 15336, the top made last week, would be the next upside level to eye. Meanwhile, trading shorts can be held on to with the stop-loss of 15060.              

 

34430, the low made Monday, is the immediate support for Banknifty, below which, 33700 would be next support; 35600 is immediate hurdle.