NIFTY INCHES CLOSER TO 17207 HURDLE

 

NIFTY INCHES CLOSER TO 17207 HURDLE

 

WORLD MARKETS

 

US markets surged 1%-1.8% on Wednesday on easing concerns around the state of the banking sector.

 

Yesterday, US indices gained 0.4%-0.7%, building on the sharp gains from the previous session.

 

Weekly jobless claims rose by 7,000 to 198,000. U.S. GDP rose 2.6% in the fourth quarter.

 

US 10-year treasury yield fell 1 bps to 3.553%. Dollar index fell half a percent to 102.17. Gold rose 0.9% to $1980 per ounce.

 

Brent crude futures rose 1.3% to $79.27 a barrel and WTI crude rose 1.9% to $74.38.

 

European markets gained 0.7%-1.5%. German consumer prices rose 7.8% y-o-y and 1.1% compared to February. Y-o-Y rise was anticipated at 7.5%.  Spain’s consumer prices rose 3.3% y-o-y in March, the slowest pace since August 2021.

 

AT HOME

 

Sensex and Nifty climbed 0.6% and 0.8% respectively, with Nifty posting it's second biggest percentage jump of the month. Sensex settled at  57960, up 346 points while Nifty added 129 points to finish at 17080. Nifty mid-cap and small-cap indices surged 1.5% and 1.7% respectively, with the later gaining the most after 31st January. Except 0.1% lower Oil & Gas index, all the NSE sectoral indices ended higher, with PSU Bank on the top, up 3.2%, followed by 2.6% higher Media index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1245 cr, 2027 cr and 16 cr respectively. DIIs were net buyers to the tune of Rs 823 cr.

 

Rupee depreciated 15 paise to end at 82.34/$.

 

For the March derivative series, Nifty fell 2.5%.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-1.6% and SGX Nifty is suggesting a modestly higher start for our market.

 

In Wednesday's report we had said that 16828, the low made last week, continued to be immediate support while 17207, the top made last week, continued to be immediate hurdle, with the stop-loss of which, trading shorts could be held on to.

 

Nifty soared to touch a high of 17126 before closing at 17080.

 

17207, the top made last week, continues to be immediate hurdle, upon crossover of which, 17314 and 17430, the 50% and 61.8% retracement levels of the recent 17800-16828 fall, would be next upside targets to eye; 16828 continues to be important immediate support.

 

For Banknifty, above Wednesday's high of 40055, 40200-40300 would be the next target zone; 39600 is the immediate support on the hourly chart.