200-DMA LANDS SUPPORT AROUND 17570; 17863 IS IMMEDIATE HURDLE

 

200-DMA LANDS SUPPORT AROUND 17570; 17863 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices bounce-off intraday lows in late trade to end higher by 0.3% each after digesting fresh batch of corporate earnings and economic data.

 

New York state factory activity index shot to 10.8 in April from -24.6 in March, far higher than expectations of -18 in April and increasing for the first time in five months. Confidence among U.S. single-family homebuilders improved for a fourth straight month in April.

 

US 10-year treasury yield rose 8 bps to 3.602%. Dollar index rose half a percent to 102.09. Gold fell 0.4% to $1996 per ounce.

 

Charles Schwab rose 3.9% on a profit beat despite a decline in deposits while State Street fell 9.2% after missing estimates on the top and bottom lines.

 

Brent crude futures settled lower by 1.8% at $84.76 a barrel, while WTI crude dropped 2.05% to $80.83 a barrel.

 

In Europe, FTSE inched up 0.1% while DAX and CAC fell 0.1% and 0.3% respectively.

 

AT HOME

 

After falling nearly a percent and half in first hour, Sensex and Nifty recouped nearly half of the losses through rest of the session to end lower by 0.9% and 0.7% respectively. Sensex settled at 59910, down 520 points while Nifty lost 121 points to finish at 17706. This was the first negative day for both the indices after nine consecutive up sessions. Nifty mid-cap and small-cap indices gained 0.4% and 0.3% respectively. Nifty IT index nosedived 4.7%, becoming top loser among the sectoral indices, followed by 0.6% lower Pharma index. PSU Bank index surged 3.1%, becoming top gainer, followed by 1% higher FMCG, Realty and Oil & Gas indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 533 cr, 747 cr and 663 cr respectively. DIIs were net buyers to the tune of Rs 270 cr.

 

Rupee depreciated 12 paise to end at 81.97/$.

 

India's March WPI inflation cooled to 29-month low of 1.34% from 3.85% in the previous month.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent but Hang Seng and Shanghai are down 0.3% and 0.1% respectively. SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 17857, the 50% retracement level of the entire 18887-16828 fall, was the immediate hurdle to eye, while 17700-17650 was the immediate support zone on the hourly chart,  with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a high of 17863 in the initial trade, plunged to 17574 before closing at 17706.

 

17574, the low made yesterday, which roughly coincided with 200-DMA, is the immediate support to eye, upon breach of which, 34-DMA, placed around 17360, would be next downside level to eye; 17863, the top made yesterday, is the immediate hurdle.

 

For Banknifty, 42600, 43000 are the upside targets to eye; 41300 is the immediate support, with the stop-loss of which, trading longs can be held on to.