TRAIL STOP-LOSS TO 17400

 

TRAIL STOP-LOSS TO 17400

 

WORLD MARKETS

 

US indices rose 0.3%-0.4% on Friday after digesting March jobs data.

 

US economy added 431,000 payrolls in March, below the composite estimate of 490,000. Unemployment rate however fell to a new two-year low of 3.6% and wages re-accelerated. February construction spending and March ISM manufacturing came in below expectations.

 

US 10-year Treasury yield rose 5 bps to 2.382%, and that on the 2-year bond surged 16 bps to 2.448%. Dollar index rose 0.2% to 98.55. Spot gold fell 0.7% to $1,922.90 per ounce.

 

Brent crude futures eased 0.3% to $104.39 while WTI crude futures settled 1.01% lower at $99.27 per barrel.

 

European markets inched up 0.2%-0.7%. Eurozone March inflation came in at an annual 7.5% compared to a forecast of 6.9%.

 

China's March Caixin/Markit manufacturing PMI came in at 48.1, down from previous month’s reading of 50.4 and marking the lowest print since February 2020.

 

For the week, Dow inched lower by 0.1% while S & P 500 and Nasdaq inched up 0.1% and 0.6% respectively. WTI as well as Brent nosedived 11% each. Gold fell 1.7%.

 

AT HOME

 

Benchmark indices climbed 1.2% each to close at the highest level since 2nd February, 2022. Sensex settled at 59276, up 708 points while Nifty added 205 points to finish at 17670. Nifty mid-cap and small-cap indices surged 1.5% and 1.6% respectively. All the BSE sectoral indices ended higher, with Utilities and Power indices leading the tally, up 3.4% and 3.2% respectively.

 

FIIs net bought stocks worth Rs 1910 cr but net sold index futures and stock futures worth Rs 278 cr and 44 cr respectively. DIIs were net sellers to the tune of Rs 184 cr.

 

For the week, Sensex and Nifty climbed 3.3% and 3% respectively, to close at the highest level after the week ended 14th January, 2022.

 

OUTLOOK

 

Markets in mainland China are closed today and tomorrow. Hang Seng is up 0.9% while Nikkei is flat. SGX Nifty is suggesting a flattish start for our market.

 

In Friday's report we had said that 17639, the top made on 10th February, continued to be next upside level to eye and had advised trailing stop-loss in long positions to 17250.

 

Nifty soared to touch a high of 17703 before closing at 17670.

 

17795, the top made in February, is the next upside level to eye, upon crossover of which, 18150, around which a trendline adjoining tops made in October 2021 and January 2022 is placed, would be the next upside target; Immediate support on the hourly chart has moved up to 17400, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 37900, around which a trendline adjoining tops made on 3rd and 10th February is placed, is the next upside level to eye; 36200 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.