TRAIL STOP-LOSS TO 17250

 

TRAIL STOP-LOSS TO 17250

 

WORLD MARKETS

 

US indices plunged 1.5%-1.6% as the 2-year and 10-year treasury yields briefly inverted for the first time since 2019, a move that is seen as a potential warning signal of recession ahead.

 

Core PCE, a key inflation measure watched by the Fed, rose 5.4% y-o-y in February, just below the expectations of 5.5%. Personal income rose 0.5%, meeting expectations, while consumer spending rose less than expected.

 

US 10-year treasury yield fell 1 bps to 2.342% while that of 2-year treasury rose nearly 3 bps to 2.34%. Dollar index rose half a percent to 98.35. Gold inched up 0.2% to $1936 per ounce.

 

Oil tumbled as Biden announced largest-ever Strategic Petroleum Reserve release. Brent crude ended the day at $107.91, for a loss of 4.9% and WTI futures for May delivery settled 7% lower at $100.28 per barrel.

 

European markets fell 0.8%-1.3%

 

Data earlier showed Chinese factory activity shrank in March, with the official manufacturing PMI coming in at 49.5, below February’s reading of 50.2.

 

For the quarter, Dow and S&P 500 declined 4.6% and 4.9% respectively while Nasdaq nosedived 9%, posting their worst quarter since March 2020.

 

AT HOME

 

Benchmark indices fell a fifth of a percent, snapping a 3-day winning streak. Sensex settled at 58568, down 115 points while Nifty finished at 17464, down 33 points. Nifty mid-cap and small-cap indices however gained 0.3% and 0.7% respectively. BSE Telecom and FMCG indices rose 1.9% and 1.1% respectively, becoming top gainers among the sectoral indices while Healthcare and Metal indices were the top loses, down 1% and 0.4% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 3089 cr, 1114 cr and 128 cr respectively. DIIs were net buyers to the tune of Rs 1145 cr.

 Rupee appreciated 12 paise to end at 75.79/$.

For the month, Nifty gained 4% and for the quarter inched up 0.6%.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.2%-1.6% with Hang Seng leading the losses. SGX Nifty is suggesting more than 100 points lower start for our market.

 

In yesterday's report we had said that 17639, the top made on 10th February, was the next upside level to eye and that the immediate support on the hourly chart had moved up to 17200, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17560, slipped to end at 17465 and is set to open below 17400 today.

 

17639, the top made on 10th February, continues to be next upside level to eye; Immediate support on the hourly chart has moved up to 17250, with the stop-loss of which, trading longs can be held on to.

 

36827, the top made last week, is the upside level to eye for Banknifty; 35700 is the immediate support.