16478, 16203 ARE SUPPORTS; 16900 IMMEDIATE HURDLE

 

16478, 16203 ARE SUPPORTS; 16900 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices climbed 1.6%-2.5% on Friday with the Dow notching its best day since November 2020, after the Kremlin reportedly said that Russian President Putin is ready to send a delegation to Belarusian capital Minsk for negotiations with Ukraine.

 

On the data front, the core personal consumption expenditures price index rose 5.2% y-o-y as against expectation of a 5.1% print.

 

US 10-year treasury yield was little changed at 1.965%. Dollar index slipped half a percent to 96.54. Spot gold slipped 1% to $1,884.69 per ounce.

 

The April Brent crude futures contract fell $1.15, or 1.2%, to $97.93 a barrel and WTI crude fell $1.22, or 1.3%, to settle at $91.59 a barrel.

 

European markets surged 3.5%-3.9%

 

On weekly basis, the Dow posted its third-straight losing week while The S&P 500 and the Nasdaq Composite finished the week 0.8% and 1.1% higher, respectively.

 

AT HOME

 

Benchmark indices climbed 2.5% on Friday to recoup half of Thursday's meteoric fall. Sensex settled at 55858, up 1328 points while Nifty added 410 points to finish at 16658. Nifty mid-cap and small-cap indices soared 4.2% and 4.8% respectively for their best daily performance after 7th April and 14th September 2020 respectively.

 

All the BSE sectoral indices ended in green, with Metal and Realty indices leading the tally, up 5.9% and 5.5% respectively.

 

FIIs net sold stocks worth Rs 4471 cr but net bought index futures and stock futures worth Rs 3555 cr and 3100 cr respectively. DIIs were net buyers to the tune of Rs 4318 cr.

 

Rupee appreciated 36 paise to end at 75.29/$.

 

For the week, Sensex and Nifty fell 3.4% and 3.6% respectively, extending the losing streak to third consecutive week.

 

OUTLOOK

 

Russia continued its advance into Ukraine over the weekend, with reports of fighting on the streets of Kyiv. Russian President Putin on Sunday put his country’s deterrence forces, which reportedly include nuclear capabilities, on high alert in response to international backlash to Russia’s invasion. On the other hand, The U.S. and its allies announced new sanctions and measures to hit Russia, such as removing selected Russian banks from the interbank messaging system, SWIFT. Many countries have also said they will close their airspace to Russian aircraft. On the positive side, representatives from the Ukraine and Russian governments have agreed to meet at the Ukraine-Belarus border.

 

Reacting to these developments, today morning, Asian markets are trading with cuts of 0.5%-0.9%, US futures are down 1.3%-2.1%, oil has jumped nearly 4% and SGX Nifty is suggesting a marginally higher start for our market.

 

In Friday's report we had said that 16800-16850, the erstwhile support zone, would now act as resistance zone while 16203, the low made Thursday, was the immediate support.

 

Nifty surged to touch a high of 16748 before closing at 16658.

 

16900, around which 200-DMA is also placed, is the immediate hurdle on the hourly chart, upon crossover of which, 17027, the upper end of the gap created by Thursday’s gap-down opening, would be the next target. 16478, the low made Friday is the immediate support, upon breach of which, 16203, the low made on Thursday, would be the next downside level to eye.

 

For Banknifty, 37000-37300 is the immediate resistance zone while 34991, the low made last week, is the immediate support.