22600, 22750 ARE NEXT TARGETS; 22100 IMMEDIATE SUPPORT

 

22600, 22750 ARE NEXT TARGETS; 22100 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices gained 0.2%-1.1% on Friday, with Nasdaq taking out 2021 high and S & P 500 closing above 5100 for the first time.

 

The University of Michigan’s sentiment index came in at 76.9, below estimate of 79.6 and also lower than the January reading of 79. ISM manufacturing index fell to 47.8 last month, down from 49.1 a month earlier and significantly below market expectation.

 

U.S. 10-year treasury yield fell 7 bps to 4.184%. Dollar index fell quarter of a percent to 103.88. Gold surged 1.9% to $2083 per ounce, its highest level in 2-months.

 

WTI crude futures climbed 2.2% to settle at $79.97 a barrel, marking the highest close since Nov. 6. Brent futures added 2.1% to $83.94 a barrel.

 

European markets rose between 0.1%-1.1%. February’s flash euro zone inflation reading showed the headline consumer price index fell to 2.6% from January’s 2.8%.

 

For the week, Nasdaq and S & P 500 gained 1.7% and 1% respectively, notching their seventh positive week over the last eight. Dow fell 0.1%.

 

AT HOME

 

On Friday, Sensex and Nifty soared 1.7% and 1.6% respectively, hitting fresh record highs and posting best percentage gain since 29th January. Sensex settled at 73745, up 1245 points while Nifty added 356 points to finish at 22338. Nifty mid-cap and small-cap indices gained 0.9% and 0.5% respectively.  Nifty Metal index soared 3.6%, becoming top gainer among the sectoral indices, followed by 2.5% higher Bank index. Media and Healthcare indices were the top losers, down 1.5% and 1.4% respectively.

 

FIIs net bought stocks and stock futures worth Rs 129 cr and 5378 cr respectively but net sold index futures worth Rs 191 cr. DIIs were net buyers to the tune of Rs 3815 cr.

 

On Saturday’s special trading session, Sensex and Nifty inched up 0.1% and 0.2% respectively and hit fresh record highs. Sensex rose 61 points to settle at 73806 and Nifty finished at 22378, up 40 points. Nifty mid-cap and small-cap indices climbed 0.7% each.

 

OUTLOOK

 

Today morning, Nikkei is up 0.8% while Hang Seng and Shanghai are down 0.5% and 0.2% respectively. GIFT Nifty is suggesting a flattish start for our market.

 

In Saturday's report we had said that 22450, followed by 22600 are the next upside levels to eye while 22100 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 22419, closed at 22378.

 

22600, followed by 22750 are the next upside levels to eye; 22100 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, above last week's high of 47434, 47736, the 78.6% retracement level of the 48636-44429 fall seen since 28th December, would be next upside target. On the way down, 46500 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

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