NIFTY RETREATS FROM 34-DMA HURDLE

 

NIFTY RETREATS FROM 34-DMA HURDLE

 

WORLD MARKETS

 

U.S. indices gained 0.2%-0.7% to hit fresh record highs.

 

U.S. 10-year treasury yield was unchanged at 4.271%. Dollar index rose

0.6% to 103.97. Gold fell 0.2% to $2181 per ounce. Sterling slid after the Bank of England (BoE) kept its benchmark interest rate on hold as expected. The Swiss National Bank unexpectedly cut its main interest rate by 25 bps to 1.50%, making it the first major central bank to dial back tighter monetary policy aimed at tackling inflation.

 

Brent crude futures settled down 0.2% to $85.78 a barrel, while WTI futures fell 0.3% to $81.07 a barrel.

 

In Europe, FTSE surged 1.9% while DAX and CAC gained 0.9% and 0.2% respectively.

 

AT HOME

 

Sensex and Nifty gained 0.8% each, posting best day since 1st March. Sensex settled at 72641, up 539 points while Nifty added 172 points to finish at 22011. Nifty mid-cap and small-cap indices soared 2.4% and 2.5% respectively, with the former posting its best single day gain since 26th December 2022. All the NSE sectoral indices ended higher, with Realty and Metal indices being the top gainers, up 3% and 2.4% respectively.

 

FIIs net sold stocks worth Rs 1827 cr but net bought index futures and stock futures worth Rs 443 cr and 3283 cr respectively. DIIs were net buyers to the tune of Rs 3209 cr.

 

 

Rupee appreciated 1 paise to end at 83.15/$.

 

OUTLOOK

 

Japan’s headline inflation rate for February came in at 2.8%, climbing from the 2.2% seen in February. Core inflation also came in at 2.8% compared with 2% in the previous month.

 

Today morning, Nikkei is up half a percent but Hang Seng and Shanghai are down 1.6% and 0.8% respectively. GIFT Nifty is suggesting a modestly lower start for our market.

 

In yesterday's report we had said that 34-DMA, placed around 22070, was the immediate hurdle for Nifty.

 

Nifty, after touching a high of 22080, eased to end at 22011.

 

22080, the top made yesterday, which coincided with 34-DMA, is the immediate hurdle to eye, upon crossover of which, 22215 and 22350, the 61.8% and 78.6% retracement levels of the recent 22526-21710 fall, would be next upside levels to eye; 21710, the low made Wednesday, is the immediate support.

 

For Banknifty, 46990, the top made yesterday, which roughly coincided with 20-DMA, is the immediate hurdle, 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; 45828, the low made Wednesday, is the immediate support.

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