17422 IS THE IMMEDIATE SUPPORT; 17750-17800 RESISTANCE ZONE

 

17422 IS THE IMMEDIATE SUPPORT; 17750-17800 RESISTANCE ZONE

 

WORLD MARKETS

 

US indices fell 0.3% each after digesting March inflation report.

 

U.S. consumer prices rose 8.5% y-o-y in March, the fastest pace since December 1981, which, was above the 8.4% estimate. The core CPI which excludes food and energy, however, rose 0.3% for the month, lower than the 0.5% estimate.

 

US 10-year treasury yield, after hitting a high of 2.836%, eased to end 6 bps lower at 2.727%. Dollar index rose a third of a percent to 100.31, its highest level in 2 years. Spot gold rose 0.66% at $1,966.42 per ounce.

 

Oil jumped as Shanghai relaxed some COVID-19 restrictions and as OPEC warned it would be impossible to replace potential supply losses from Russia. Brent futures climbed 6.3% to $104.64 and WTI settled 6.7% higher at $100.60 per barrel.

 

European markets fell 0.3%-0.6%.

 

AT HOME

 

Sensex and Nifty slipped 0.7% and 0.8% respectively, extending the losing streak to second straight day and closing in red for the fifth day in last six sessions. Sensex settled at 58576, down 388 points while Nifty lost 145 points to finish at 17530. Nifty mid-cap and small-cap indices tumbled 1.9% and 1.6% respectively, suffering their worst fall since 7th March. Except half a percent higher Bankex, all the BSE sectoral indices ended in red, with Metal and Energy indices leading the losses, down 3.5% and 2.8% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3128 cr, 1528 cr and 765 cr respectively. DIIs were net buyers to the tune of Rs 870 cr.

 

Rupee depreciated 18 paise to end at 76.13/$.

 

India’s retail inflation hit a 17-month high of 6.95% in March. Core CPI hardened to 6.4% from 5.8%.

 

February IIP growth stood at 1.7%, up from 1.5% in the previous month but lower than market estimate.

 

OUTLOOK

 

Today morning, Nikkei is up 1.3% while Hang Seng and Shanghai are down 0.3% and 0.5% respectively. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 17422, the monthly low made on 1st April, was the next downside level to eye while 17850 was the immediate hurdle.

 

Nifty plunged to 17442 before rebounding to close at 17530.

 

17422, the low made on 1st April, continues to be immediate support to eye, upon breach of which, 200-DMA, placed around 17150, would be the next downside level to eye; 17750-17800 is the immediate resistance zone.

 

37264, the low made yesterday, is the immediate support for Banknifty, upon breach of which, 36000-36800 would be next support zone; 38765, the top made last week, is the immediate hurdle.

 

Infosys will report its quarterly earnings today.