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

 

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

 

WORLD MARKETS

 

Dow and Nasdaq ended marginally in the red while S & P 500 inched up 0.1%. Markets digested mixed signals on future rate hikes from Fed officials and another set of corporate earnings.

 

St. Louis Fed President James Bullard said the Fed should continue raising rates as recent data shows inflation remains persistent, while Atlanta Fed President Raphael Bostic said the Fed will likely need to hold steady for an extended period to lower inflation after one more rate hike.

 

Goldman Sachs posted weak first quarter results while Netflix posted mixed results and pushed back it's crackdown on password sharing.

 

US 10-year treasury yield fell 2 bps to 3.579%. Dollar index fell 0.4% to 101.72. Gold rose half a percent to $2005 per ounce.

 

Economic data from China was strong. China’s economy grew more than expected at 4.5% y-o-y in first quarter, beating estimates to see growth of 4%. Retail sales growth quickened to 10.6% in March, beating expectations and hitting a near two-year high, while factory output growth also sped up but was just below expectations.

 

Brent crude settled 1 cent at $85.25 a barrel while WTI crude futures closed up 3 cents at $80.86.

 

European markets gained 0.4%-0.7%. U.K. job market figures showed unemployment rose slightly, but the number of people classed as economically inactive was down 0.4% points to 21.1%. Meanwhile, pay growth slowed by less than expected, with wages increasing 6.9% in the private sector and 5.3% in the public sector.

 

AT HOME

 

Benchmark indices ended lower by three tenth of a percent after a choppy session, extending the losing streak to second straight day. Sensex settled at 59727, down 184 points while Nifty lost 46 points to finish at 17660. Nifty mid-cap and small-cap indices however gained 0.8% and 0.3% respectively. Nifty Pharma and Healthcare indices climbed 1.6% and 1.2% respectively, becoming top gainers among the sectoral indices while Consumer Durables index was the top loser, down 0.4%, followed by 0.3% lower FMCG, Financial Services, Media and Oil & Gas indices.

 

FIIs net sold stocks and stock futures worth Rs 811 cr and 187 cr respectively but net bought index futures worth Rs 72 cr. DIIs were net buyers to the tune of Rs 402 cr.

 

Rupee depreciated 3 paise to end at 82/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.1%-0.8% and SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 17574, the low made Monday, which roughly coincided with 200-DMA, was the immediate support to eye while 17863, the top made Monday, was the immediate hurdle.

 

Nifty, after touching a high of 17766, slipped to 17610 before closing at 17660.

 

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

 

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