NIFTY REBOUNDS AFTER ACHIEVING 34-DMA TARGET

 

NIFTY REBOUNDS AFTER ACHIEVING 34-DMA TARGET

 

WORLD MARKETS

 

US indices ended marginally in the red after a choppy session.

 

US 10-year treasury yield rose 4 bps to 2.851%. Dollar index rose 0.3% to 100.82. Gold, after touching a high of $1998, eased to end 0.2% higher at $1978 per ounce.

 

Brent crude rose $1.24 to $112.94 a barrel and WTI rose 85 cents to $107.80 a barrel.

 

European markets were shut for Easter Monday.

 

China reported mixed economic data, with retail sales in March coming in below expectations while first-quarter GDP was higher than anticipated.

 

AT HOME

 

Sensex and Nifty tumbled 2% and 1.7% respectively, extending the losing streak to fourth straight day and closing at the lowest level after 16th March and 25th March respectively. Sensex settled at 57166, down 1172 points while Nifty lost 302 points to finish at 17173. Nifty mid-cap and small-cap indices fell 1% and 1.25% respectively. BSE IT and Teck indices nosedived 4.8% and 4.6% respectively, becoming top losers among the sectoral indices while Power and Utilities indices were the top gainers, up 2% and 1.9% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 6387 cr, 403 cr and 912 cr respectively. DIIs were net buyers to the tune of Rs 3342 cr.

 

Rupee depreciated 8 paise to end at 76.26/$.

 

OUTLOOK

 

Today, Hang Seng has opened 2.5% lower after yesterday's break while Nikkei is up 0.3% and Shanghai is down 0.1%. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 200 and 34-DMA, placed around 17160 and 17080 respectively, were the next downside levels to eye and had advised holding on to short positions with the stop-loss of 17664.

 

Nifty, after touching a low of 17068, rebounded to close at 17173, achieving the targets mentioned above and vindicating our view.

 

17068, the low made yesterday, which also coincided with 34-DMA, is the important immediate support to eye; Immediate hurdle on the hourly chart has moved lower to 17565, with the stop-loss of which, trading shorts can be held on to.

 

36441, the low made yesterday, is the immediate support for Banknifty, below which 34-DMA, placed around 36000, would be the important level to eye; 37550 is immediate hurdle.