22000-21950 CONTINUES TO BE SUPPORT AREA; 22500 IS IMMEDIATE HURDLE

 

22000-21950 CONTINUES TO BE SUPPORT AREA; 22500 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

On Tuesday, Dow rose 0.2% to snap a six-day losing streak while S & P 500 and Nasdaq fell 0.2% and 0.1% respectively on Tuesday. U.S. 10-year treasury yield rose 6 bps to 4.669%. Dollar index rose 0.2% to 106.37. Gold was flat at $2383 per ounce.

 

Fed Chair Powell said there has been a “lack of further progress” on inflation so far this year. Recent economic data has also shown growth and strength in the labor market, he added.

 

Yesterday, U.S. indices fell 0.1%-1.2%. The S&P 500 and Nasdaq Composite both notched four-day losing streaks.

 

U.S. 10-year treasury yield fell 8 bps to 4.589%. Dollar index fell 0.4% to 105.97. Gold fell 0.9% to $2360 per ounce.

 

WTI crude futures lost 3.1% to $82.69 a barrel and Brent futures fell 3% to settle at $87.29 a barrel.

 

In Europe, FTSE and CAC gained 0.4% and 0.6% respectively while DAX was flat. U.K. inflation eased to 3.2% in March, slightly less than economists expected.

 

AT HOME

 

Benchmark indices slipped six tenth of a percent each, extending the losing streak to third straight session and closing at the lowest level after 27th March. Sensex settled at 72943, down 456 points while Nifty lost 124 points to finish at 22147. Nifty mid-cap index ended marginally in the red but small-cap index gained three fourth of a percent. Nifty IT index tumbled 2.6%, becoming top loser among the sectoral indices, followed by 1.3% lower PSU Bank index. Media and Oil & Gas indices were the top gainers, up 1.6% and 0.6% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 4468 cr, 3156 cr and 4360 cr respectively. DIIs were net buyers to the tune of Rs 2040 cr.

 

Rupee depreciated 9 paise to end at 83.54/$.

 

IMF raised India's FY25 GDP growth forecast by 30 bps to 6.8%.

 

OUTLOOK

 

Today morning, Hang Seng is up 0.4% while Nikkei and Shanghai are marginally lower. GIFT Nifty is suggesting around 35 points lower start for our market.

 

In Tuesday's report we had said that 22000-21950 was the next support area while 22600 was the immediate hurdle.

 

Nifty plunged to 22079 before closing at 22147.

 

22000-21950, where lower end of the channel formation Nifty has been trading since late January, continues to be immediate support area; 22500 is the immediate hurdle on the hourly chart.

 

For Banknifty, 34-DMA, placed around 47300, is the important immediate support, below which, 47062 and 46520, the 61.8% and 78.6% retracement levels of the recent upmove, would be next downside levels to eye; 48500 is the immediate hurdle.

 

Infosys, Bajaj Auto and HDFC Life will report their quarterly earnings today.

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