34-DMA RESISTANCE AT 22070; 21667 IS IMMEDIATE SUPPORT

 

34-DMA RESISTANCE AT 22070; 21667 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

U.S. indices surged 0.9%-1.2% to hit all-time closing records after the Federal Reserve maintained expectations for three cuts before the end of 2024.

 

The Fed left rates unchanged but said that it plans to cut three times before the end of the year, reaffirming its previous forecast from December. That said, the central bank indicated that it needs greater evidence that inflation is easing before it starts taking its foot off the brakes.

 

U.S. 10-year treasury yield fell 2 bps to 4.277%. Dollar index fell 0.4% to 103.38. Gold surged 1.3% to $2186 per ounce.

 

Brent crude futures settled down 1.6% at $85.95 a barrel and WTI futures ended 2.1% lower at $81.68.

 

In Europe, DAX rose 0.2%, FTSE was flat while CAC fell half a percent. U.K. inflation came in lower than expected at 3.4% y-o-y in February, down from 4% in January.

 

AT HOME

 

Benchmark indices ended marginally higher after a choppy session. Sensex settled at 72101, up 89 points while Nifty added 21 points to finish at 21839. Nifty mid-cap and small-cap indices were little changed. Nifty Oil & Gas and Realty indices were the top gainers among the sectoral indices, up 1.3% and 0.6% respectively while Metal index was the top loser, down 0.8%, followed by 0.3% lower Private Bank and Financial Services indices.

 

FIIs net sold stocks and index futures worth Rs 2599 cr and 928 cr respectively but net bought stock futures worth Rs 1881 cr. DIIs were net buyers to the tune of Rs 2668 cr.

 

Rupee depreciated 13 paise to end at 83.16/$.

 

OUTLOOK

 

Today morning, Hang Seng and Nikkei are up 1.7% and 1.2% respectively while Shanghai is up 0.2%. GIFT Nifty is suggesting around 170 points gap-up start for our market.

 

In yesterday's report we had said that 21667, the 61.8% retracement level of the 21137- 22526 upmove seen since 24th January, was the next downside levels to eye while 22050-22100 was the immediate resistance zone.

 

Nifty, after touching a low of 21710, rebounded to end at 21839. The benchmark is set to open near 22000 today.

 

34-DMA, placed around 22070, is the immediate hurdle for Nifty; 21667, the 61.8% retracement level of the 21137- 22526 upmove seen since 24th January, is the immediate support.

 

For Banknifty, 46800-46900 is the immediate resistance zone upon crossover of which, 47270 and 47662, the 61.8% and 78.6% retracement levels of recent 48161-45828 fall, would be next upside levels to eye; 45661, the bottom made on 29th Feb., is the immediate support.

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