17700-17750 IS THE RESISTANCE ZONE; TRAIL STOP-LOSS TO 17450

 

17700-17750 IS THE RESISTANCE ZONE; TRAIL STOP-LOSS TO 17450

 

WORLD MARKETS

 

Dow and S & P 500 rose 0.3% and 0.1% respectively while Nasdaq was little changed yesterday, ahead of Wednesday's key inflation release.

 

US 10-year treasury yield rose 1 bps to 3.421%. Dollar index rose 0.4% to 102.54. Gold fell 0.8% to $1991 per ounce.

 

Brent crude settled down 0.2% at $84.58 a barrel while WTI fell 0.1% to $79.74.

 

European markets were shut for Easter Monday.

 

AT HOME

 

After rising nearly half a percent in first half, benchmark indices gave away most of the gains in second half to end just marginally higher. Sensex settled at 59846, up 13 points while Nifty added 25 points to finish at 17624. Nifty mid-cap and small-cap indices gained 0.4% and 0.3% respectively. Nifty Realty index surged 4.3%, becoming top gainer among the sectoral indices, followed by 1.2% higher Auto index. Nifty Bank was the top loser, down half a percent, followed by 0.4% lower FMCG and Financial Service indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 883 cr, 1849 cr and 779 cr respectively. DIIs were net buyers to the tune of Rs 352 cr.

 

Rupee depreciated 9 paise to end at 81.98/$.

 

Tata Motors shares surged after its global wholesales, including Jaguar Land Rover, rose 8% YoY to 3,61,361 units in the March quarter. ONGC share rose on expectation that the domestic gas price mechanism unveiled by the government last week is likely to be beneficial for the company.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1% each while Shanghai is off 0.3%. SGX Nifty is suggesting around 35 points higher start for our market.

 

In yesterday's report we had said that 17700-17800 was the important resistance zone and had advised trailing stop-loss in longs to 17320.

 

Nifty, after touching a high of 17694, slipped to end at 17624.

 

17700-17750 continues to be important resistance zone as 17700 is where a trendline adjoining tops made in December 2022 and February 2023 is placed, while 34 and 20-week moving averages are placed around 17750; Immediate support on the hourly chart has moved up to 17450, with the stop-loss of which, trading longs should be held on to.

 

For Banknifty, 41275, the top made last week, continues to be immediate hurdle; 40400 continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.