21860 CONTINUES TO BE IMMEDIATE SUPPORT; 22350 IMMEDIATE HURDLE

 

21860 CONTINUES TO BE IMMEDIATE SUPPORT; 22350 IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.3%-0.4% after the release of hotter-than-expected U.S. inflation data sent Treasury yields higher.

 

February’s producer price index advanced 0.6% last month. Core PPI rose 0.3%. Expected figures were 0.3% and a 0.2% respectively. Weekly jobless claims fell 1,000 to a seasonally-adjusted 209,000 as against forecast of 218,000 claims. Retail sales rose 0.6% last month, lower than the expected 0.8% rise. The numbers for January were revised lower to show sales tumbling 1.1% instead of 0.8% as previously reported.

 

U.S. 10-year treasury yield rose 10 bps to 4.29%. Dollar index jumped 0.6% to 103.36. Gold fell 0.6% to $2162 per ounce.

 

Oil prices rose to four-month highs as the International Energy Agency predicted a tighter market in 2024 and raised its view on oil demand growth this year. Brent futures climbed 1.7% to settle at $85.42 a barrel and WTI futures rose 1.9% to end at $81.26.

 

In Europe, CAC rose 0.3% while FTSE and DAX fell 0.4% and 0.1% respectively.

 

AT HOME

 

Sensex and Nifty gained 0.5% and 0.7% respectively, recouping nearly half of yesterday's steep losses. Sensex settled at 73097, up 335 points while Nifty finished at 22151, up 153 points. Nifty mid-cap and small-cap indices climbed 2% and 3.4% respectively, recovering 45% and 64% of yesterday's cuts respectively. Nifty Oil & Gas index was the top gainer among the sectoral indices, up 2.3%, followed by 2% higher Metal, IT and Media indices. Nifty Bank and Financial Services indices were the top losers, down 0.4% and 0.2% respectively.

 

FIIs net sold stocks and index futures worth Rs 1356 cr and 711 cr respectively but net bought stock futures worth Rs 2138 cr. DIIs were net buyers to the tune of Rs 139 cr.

 

Rupee appreciated 4 paise to end at 82.82/$.

 

OUTLOOK

 

Today morning, Hang Seng is down 1.4% while Shanghai and Nikkei are off 0.2% each. GIFT Nifty is suggesting nearly 100 points gap-down start for our market.

 

In yesterday's report we had said that 21860, the bottoms made on 29th February, was the next downside level to eye while 22350 was the immediate hurdle on the hourly chart.

 

Nifty, after touching a low of 21917, rebounded to end at 22151. The benchmark is set to open near 22050 today.

 

21860, the bottoms made on 29th February, continues to be next downside level to eye; 22350 continues to be immediate hurdle.

 

For Banknifty, 46500, around which 34-DMA is placed, is the immediate support to eye; 47500 is immediate hurdle.

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