TRAIL STOP-LOSS TO 14640

 

TRAIL STOP-LOSS TO 14640

 

WORLD MARKETS

 

After falling nearly a percent in the initial trade, US indices saw a sustained northward move through rest of the session to end higher by 0.1%-0.6%

 

Bank stocks rose after the Fed announced that banks could resume buybacks and raise dividends starting at the end of June.

 

The yield on the benchmark 10-year Treasury note rose to 1.63% while that on the 30-year Treasury bond rose to 2.35% after Federal Reserve Chair Jerome Powell said that congressional stimulus and accelerated vaccine distribution has allowed the economy to recover faster than expected and that at some point, that will allow the Fed to start pulling back on the help it has provided.

 

Jobless claims totaled 684,000 for the week ended March 20, lower than the expected figure of 735000 and marking the first print below 700,000 since the Covid-19 pandemic began just over a year ago.

 

The dollar index gained 0.4% to hit four month high. Spot gold fell 0.4% to $1,727.01 per ounce

 

Brent crude slid 3.8% to $61.95 per barrel while U.S. WTI crude dropped 4.28% to settle at $58.26 per barrel.

 

In Europe, FTSE fell 0.6% while DAX and CAC inched up 0.1% each.

 

AT HOME

 

Sensex and Nifty plunged a percent and half each to close at the lowest level since 29th January and 1st February respectively. Sensex settled at 48440, down 740 points while Nifty lost 224 points to finish at 14324. Nifty mid-cap and small-cap indices nosedived 2% and 2.2% respectively. All the BSE sectoral indices ended in red, with Telecom index leading the losses, down 3.1%, followed by 2.8% lower Power and Auto indices.

 

FIIs net sold stocks worth Rs 3384 cr but net bought index futures and stock futures worth Rs 960 cr and 1313 cr respectively. DIIs were net bought stocks worth Rs 2268 cr.

 

Rupee depreciated 6 paise to end at 72.62/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-1.2% and SGX Nifty is suggesting around 80 points higher start for our market.

 

At the risk of repeating, 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 said that 14525 was the immediate support, below which, 14350, the bottom made on 19th March, would be the crucial support.

 

Nifty broke 14525 and plunged all the way to 14264 before closing at 14325. The benchmark is set to open near 14400 today.

 

20-week moving average, placed around 14120, is the next support to eye.

 

Immediate hurdle on the hourly chart has moved lower to 14640, with the stop-loss of which, trading shorts can be held on to.