14670 IS THE SUPPORT; 14984 HURDLE

 

14670 IS THE SUPPORT; 14984 HURDLE

 

WORLD MARKETS

 

US indices gained 0.5%-0.9% on Friday, with Dow and S & P 500 hitting record highs, amid rising reopening optimism.

 

March PPI showed a rise of 1.0%, compared with a projected increase of 0.4%.

 

The 10-year Treasury yield ticked slightly higher to 1.66%. Spot gold fell 0.7% to $1,744 per ounce.

 

Brent future fell 25 cents to settle at $62.95 a barrel while WTI crude settled 28 cents, or 0.5%, lower at $59.32 per barrel.

 

In Europe, FTSE fell 0.4%, while DAX and CAC rose 0.2% and 0.1% respectively. German industrial output in February fell 1.6% from the previous month, which was well below a consensus forecast of a 1.5% rise.

 

For the week, US indices gained 2%-3.1%.

 

AT HOME

 

Benchmark indices ended lower by three tenth of a percent, snapping 3-day winning streak. Sensex settled at 49591, down 155 points while Nifty lost 39 points to finish at 14834. Nifty mid-cap and small-cap indices however gained 0.2% and 0.5% respectively, extending the winning streak to fourth straight day. BSE Metal and Power indices slipped 1.1% each, becoming top losers among the sectoral indices while Healthcare index surged 2.3%, becoming top gainer, followed by 0.9% higher FMCG index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 654 cr, 639 cr and 666 cr respectively. DIIs were net sellers to the tune of Rs 271 cr.

 

Rupee depreciated 15 paise to end at 74.73/$, extending the losing streak to fifth straight day and hitting an eight-month low.

 

For the week, Sesnex and Nifty fell 0.9% and 0.2% respectively.

 

OUTLOOK

 

Today morning, Asian markets are trading mixed with modest changes. SGX Nifty is suggesting around 150 points lower start for our market.

 

In Friday's report we had said that 15051 and 15336, the tops made on 16th March and 12th March respectively, continued to be next upside levels to eye and had advised holding on to long positions with the stop-loss of 14740.

 

Nifty, after touching a low of 14785, closed at 14834. The benchmark is set to open near 14700 today.

 

14670, around which a trendline adjoining recent bottoms on the hourly chart is placed, would be the support to eye after today’s gap-down opening. If 14670 also gives way, 14460, the bottom made last week, would be the next downside level to eye.

 

14984, the top made last week, would work as immediate hurdle.

 

TCS will report its quarterly earnings today.

 

March CPI and February IIP data will be released today.