17000 CONTINUES TO BE UPSIDE LEVEL TO EYE; 16450 CONTINUES TO BE SUPPORT

 

17000 CONTINUES TO BE UPSIDE LEVEL TO EYE; 16450 CONTINUES TO BE SUPPORT

 

WORLD MARKETS

 

US indices surged 1.8%-2.9% as markets kept an eye on cease-fire negotiations between Ukraine and Russia, while oil prices continued to slide further below $100 per barrel and a reading of wholesale inflation came in lighter than expected.

 

US producer price index (PPI) rose 0.8% in February from the previous month, slightly lower than the 0.9% estimate but still showing a 10% gain from the same time last year. However, core PPI, which excludes food, energy and trade services, rose just 0.2%, below the expectation of 0.6%.

 

US 10-year treasury yield inched up 1 bps to 2.149%. Dollar index was little changed at 99.01. Spot gold dipped 1.8% to $1,916.01 per ounce.

 

Oil extended Monday's slide with WTI falling another 6.4% to settle at $96.44 while Brent settled 6.5% lower at $99.91 per barrel.

 

European markets fell 0.1%-0.25%. Germany's ZEW Economic Sentiment Index plunged in March to -39.3, well below consensus expectations of 10.0 and down from 54.3 in the previous month.

 

Data showed Chinese industrial output rose 7.5% y-o-y in January and February, higher than the 3.9% increase predicted. Retail sales for the first two months of the year also beat expectations, gaining 6.7% as compared with expectations for a 3% rise. Meanwhile, Hong Kong’s Hang Seng index plunged 5.7% to its lowest since Feb. 2016. Sentiment on Chinese tech shares took a hit following a report that Tencent could face a record fine for violating anti-money laundering rules.

 

AT HOME

 

After opening higher by a third of a percent, benchmark indices nosedived a percent and half from the top to end lower by 1.25% each, snapping a 5-day winning streak. Sensex settled at 55776, down 709 points while Nifty lost 208 points to finish at 16663. Nifty mid-cap and small-cap indices fell 0.9% and 1.4% respectively, also falling for the first time in 6 days.. Except 0.6% higher Auto index, all the BSE sectoral indices ended in red, with Metal index leading the losses, down 4.3%, followed by 2.6% lower Oil & Gas index.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1250 cr, 1229 cr and 1064 cr respectively. DIIs were net buyers to the tune of Rs 98 cr.

 

Rupee depreciated 5 paise to end at 76.61/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.8%-2.6% and SGX Nifty is suggesting more than 200 points higher start for our market.

 

In yesterday's report we had said that 17000 continued to be next upside target while immediate support on the hourly chart had moved up to 16450, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 16927, slipped to 16555 before closing at 16663. The benchmark is set to open near 16850 today.

 

17000, around which 200 as well as 34-DMA are placed, continues to be next upside target; 16450 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 35644, the top made yesterday, coincided with 20-DMA and is immediate hurdle, upon crossover of which, 36300-36800 would be next target zone; 34100 continues to be immediate support.

 

Meanwhile, Fed, at the end of its two-day meeting, is widely expected to raise rates by a quarter-point, the first hike since 2018. the Fed is also set to share its updated forecasts on inflation and the economy.