STAY LONG WITH THE STOP-LOSS OF 17050

 

STAY LONG WITH THE STOP-LOSS OF 17050

 

WORLD MARKETS

 

US indices surged 1.3%-1.7% on Friday after the Fed’s preferred inflation gauge showed a cooler-than-expected increase in prices.

 

The core Personal Consumption Expenditures index, which excludes energy and food costs, rose 0.3% in February, less than the 0.4% expected. U.S. consumer spending rose moderately in February after surging the prior month.

 

US 10-year treasury yield fell 8 bps to 3.471%. Dollar index rose 0.4% to 102.59. Gold fell 0.6% to $1969 per ounce.

 

Brent June futures rose 1.6% to $79.89 a barrel and WTI May future settled higher 1.8% at $75.67 a barrel.

 

European markets rose 0.2%-0.8%. Euro zone headline inflation slowed to 6.9% in March, down from 8.5% in February. But core inflation, stripping out energy and food, increased from 5.6% to 5.7%. The U.K. economy recorded 0.1% growth in the fourth quarter of 2022, revised up from a first estimate showing no growth. German retail sales fell.

 

For the week, US markets gained 3.2%-3.5%. European markets surged 3.1%-4.5%. Asian markets rose between 0.2%-2.6%. US 10-year treasury yield rose 9 bps. Dollar index fell half a percent. Gold was down 0.4%.

 

For the month, Dow, S & P 500 and Nasdaq gained 1.9%, 3.5% and 6.7% respectively. For the quarter, Dow inched up 0.4% while S & P 500 and Nasdaq surged 7% and 16.8% respectively, with Nasdaq posting its best quarter since 2020.

 

AT HOME

 

Sensex and Nifty soared 1.8% and 1.6% respectively, registering their best day since 11th November 2022. Sensex settled at 58991, up 1031 points while Nifty added 279 points to settle at 17359. This was the best close after 10th March for both the indices. Nifty mid-cap and small-cap indices gained 0.9% and 1.6% respectively. All the NSE sectoral indices ended higher, with IT and Bank indices being the top gainers, up 2.4% and 1.8% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 358 cr, 267 cr and 1767 cr respectively. DIIs were net buyers to the tune of Rs 2480 cr.

 

Rupee appreciated 17 paise to end at 82.17/$.

 

For the week, Sensex and Nifty climbed 2.5% each. For the month, Sensex was little changed while Nifty inched up 0.3%. For the financial year, Sensex inched up 0.7% while Nifty fell 0.6%.

 

OUTLOOK

 

Oil prices are trading sharply higher today after Saudi Arabia and other OPEC+ oil producers yesterday announced a surprise additional oil output cuts of around 1.16 million barrels per day.

 

Today morning, Nikkei and Shanghai are up 0.3% each while Hang Seng is marginally in the red. SGX Nifty is suggesting a marginally higher start for our market.

 

In Friday's report we had said that 17207, the top made previous week, continued 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

 

Nifty opened above 17207 and surged all the way to 17381 before closing at 17360.

 

17428 followed by 17592, the 61.8% and 78.6% retracement levels of the recent 17800-16828 fall, are the next upside levels to eye; 17050 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 41016, the 78.6% retracement level of the recent 41671-38613 fall, is the next upside target, above which, 41671, the top made in March, would be next level to eye; 39750 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.