14000 BELOW 14248; 14652-14785 IS THE RESISTANCE ZONE

 

14000 BELOW 14248; 14652-14785 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

Dow and Nasdaq fell 0.2% and 0.4% respectively while S & P 500 ended flat ahead of a highly anticipated inflation report set for release before Tuesday’s opening bell.

 

Fed Chair Powell, in a media interaction on Sunday, said that it was “highly unlikely” that the Fed would raise interest rates “anything like this year.” Also Powell on Sunday and Biden administration economists on Monday stressed that while they expect a jump in inflation in the months ahead, the change could prove temporary due to comparisons with last year’s pandemic lockdowns and extra consumer spending from stimulus checks and pent-up demand.

 

The yield on the benchmark 10-year Treasury note ticked up to 1.671%. The dollar index fell 0.04% to 92.164. Spot gold fell 0.6 % to $1,732.14 per ounce.

 

Brent crude rose 0.4% to above $63 a barrel while WTI rose 0.5% to settle at $59.70 a barrel.

 

In Europe, FTSE fell 0.4% while DAX and CAC eased 0.1% each. Euro zone retail sales in February rose 3% from a month earlier, beating expectations.

 

AT HOME

 

Sensex and Nifty nosedived 3.5% each, suffering the worst fall after 26th February and closing at the lowest level since 29th January and 1st February respectively. Sensex settled at 47883, down 1707 points while Nifty lost 524 points to finish at 14310. Nifty mid-cap and small-cap indices nosedived 5.6% each. All the BSE sectoral indices ended in red, with Realty and Industrials indices leading the losses, down 7.7% and 5.9% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1746 cr, 1740 cr and 398 cr respectively. DIIs were net buyers to the tune of Rs 233 cr.

 

Rupee depreciated 32 paise to end at 75.06/$.

 

March CPI came in at 5.52%, up from 5.03% MoM. February IIP contracted 3.6%, as against contraction of 0.9% in January.

 

TCS reported good set of numbers. Dollar revenue grew 5% q-o-q and constant currency revenue growth stood at 4.2%. EBITDA margin improved 20 bps to 26.8%, hitting 22 quarter high. Order win stood at record $9.2 bn.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1% each while Shanghai is little changed. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 14670 was the immediate support, below which, 14460, the bottom made last week, would be the next downside level to eye.

 

Nifty opened below 14670 support and plunged all the way to 14248 before closing at 14310.

 

14248, the low made yesterday, coincides with the downward sloping trendline adjoining bottoms made on 26th February and 19th March and also roughly coincides with the 14264 bottom made in March. This makes 14248 immediate support, upon breach of which, 14050-14000 would be the next support zone.

 

14652-14785, the gap created by yesterday's gap-down opening, would act as the resistance zone.