TRAIL STOP-LOSS TO 14990

 

TRAIL STOP-LOSS TO 14990

 

WORLD MARKETS

 

US indices rose 0.3%-0.6% after the Fed ramped up its expectations for economic growth but indicated that there are likely to be no interest rate hikes through 2023.

 

Fed Chair Powell reiterated that the central bank wants to see inflation consistently above its 2% target and material improvement in the U.S. labor market before considering changes to rates or its monthly bond purchases. The Fed also said that it expected gross domestic product growth to reach 6.5% this year and for core inflation to reach 2.2%, with both measures then projected to cool off in 2022.

 

The 10-year Treasury yield, after hitting a high of 1.689%, eased to 1.646% following the central bank’s update. The dollar index dropped 0.5% to 91.41. Spot gold rose 0.75% to $1,744.

 

On the data front, housing starts fell sharply in February, a month marked by severe weather across much of the United States.

 

Extending the losing streak to fourth straight day, Brent crude fell 44 cents, or 0.6%, to $67.98 a barrel, while U.S. WTI crude settled 20 cents, or 0.3%, lower at $64.60 per barrel.

 

In Europe, FTSE fell 0.6%, CAC was flat while DAX rose 0.3%

 

AT HOME

 

Sensex and Nifty tumbled 1.1% and 1.3% respectively, extending the losing streak to fourth straight day and closing at the lowest level in March. Sesnex settled at 49801, down 562 points while Nifty lost 189 points to finish at 14721. Nifty mid-cap and small-cap indices nosedived 2.5% and 2.2% respectively. All the BSE sectoral indices ended in red, with Oil & Gas and Power indices leading the losses, down 3.2% and 2.9% respectively.

 

FIIs net bought stocks worth Rs 2626 cr but net sold index futures and stock futures worth Rs 6 cr and 53 cr respectively. DIIs were net sellers to the tune of Rs 562 cr.

 

Rupee appreciated 1 paise to end at 72.54/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-1.6% and SGX Nifty is suggesting around 150 points higher start for our market.

 

In yesterday's report we had reiterated the view 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 plunged to break 14745 support and touched a low of 14696 before closing at 14721. The benchmark is set to open above 14850 today.

 

Immediate hurdle on the hourly chart has moved lower to 14990.

 

14696, the low made yesterday, would work as immediate support.

 

Stop-loss in trading shorts can be trailed to 14990.