15051 ABOVE 14883; 14460 CONTINUES TO BE IMMEDIATE SUPPORT
WORLD MARKETS
Dow and S & P 500
ended marginally higher while Nasdaq eased 0.1%
Fed’s latest meeting
minutes showed that participants were seeing signs of an economic rebound and a
pickup in inflation but still believed they were a long way from altering their
interest rate policy or asset purchasing program.
President Biden spoke about
his administration’s $2 trillion infrastructure plan that includes a corporate
tax rate hike to 28% and noted that he is willing to negotiate on the proposed
tax increase.
Brent crude futures rose
42 cents, or 0.7%, to $63.16 a barrel while WTI crude settled 44 cents, or
0.7%, higher at $59.77 per barrel.
The yield on the
benchmark 10-year Treasury note ticked up to 1.672%. The yield on the 30-year
Treasury bond rose to 2.357%. Dollar index inched up 0.1% to 92.42. Spot gold
fell 0.4% to $1,737.01 per ounce
In Europe, FTSE rose
0.9%, CAC was flat while DAX fell 0.2%. FTSE was boosted by a weakening of the
pound against the dollar and optimism over the swift progress of vaccine
rollouts across the U.K. IHS Markit’s
final euro zone composite PMI came in at 53.2, up from 48.8 in February and
above the 52.5 flash estimate.
AT HOME
Benchmark indices rose
0.9% each, extending the winning streak to second straight day. Sensex settled
at 49661, up 460 points while Nifty added 135 points to finish at 14819. Nifty mid-cap
and small-cap indices climbed 1.3% and 1.7% respectively. Except 0.2% lower
Power index, all the BSE sectoral indices ended in green, with Auto index and
Bankex leading the tally, up 1.7% and 1.6% respectively
FIIs net bought stocks,
index futures and stock futures worth Rs 227 cr, 762 cr and 299 cr
respectively. DIIs were net buyers to the tune of Rs 381 cr.
Rupee nosedived 112 paise
to end at 74.55/$, it's lowest level in over four months.
RBI's Monetary Policy
Committee kept repo rate unchanged at 4% while maintaining its accommodative
stance. RBI maintained its FY22 GDP growth forecast at 10.5% which consists of
26.2% in Q1; 8.3% in Q2; 5.4% in Q3; and 6.2% in Q4. RBI revised the projection
for CPI inflation to 5.0% in Q4: 2020-21; 5.2 % in Q1:2021-22; 5.2% in Q2; 4.4%
in Q3; and 5.1% in Q4. In order to keep
borrowing costs low and support the economy’s recovery, the central bank
launched a G-sec Acquisition Programme (G-SAP), committing to purchase a
specified quantum of bonds in the secondary market. The first purchase worth Rs
1 lakh crore will take place in Q1FY22. Following this announcement, bonds
rallied smartly with benchmark yields tumbling by about ten basis points.
India's IHS Markit
Services PMI for March eased to 54.6 from 55.3 in February. The composite PMI
too dropped to 56 from 57.3.
OUTLOOK
Today morning, Hang Seng
is up 0.6% while Nikkei and Shanghai are off 0.2% and 0.1% respectively. SGX
Nifty is suggesting around 50 points higher start for our market.
In yesterday's report we
had said that 14883, the top made last week, which also coincides with 34-DMA,
continued to be immediate hurdle while 14460, the bottom made Monday, which is
also the two-third retracement level of the recent 14264-14883 upmove,
continued to be immediate support.
Nifty, after touching a
high of 14880, eased to close at 14819 and is set to open above 14850 today.
14883, the top made last
week, continues to be immediate hurdle, upon crossover of which, 15051 and
15336, the tops made on 16th March and 12th March respectively, would be the
next upside levels to eye.
14460, the bottom made Monday, continues to be immediate
support.
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