22750 CONTINUES TO BE NEXT UPSIDE TARGET; 22200 IMMEDIATE SUPPORT

 

22750 CONTINUES TO BE NEXT UPSIDE TARGET; 22200 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and Nasdaq plunged 1.4% each while S & P 500 fell 1.2% as oil prices surged and comments from U.S. Federal Reserve officials fueled worries that the central bank could hold off on rate cuts. Dow had ts worst session since March 2023 and logged its fourth consecutive losing day.

 

Minneapolis Fed President Neel Kashkari said he wondered if the central bank should cut rates at all if inflation remained sticky.

 

Initial jobless claims increased more than expected last week, hitting their highest level since late January. Trade deficit increased to $68.9 billion in February, slightly higher than estimate.

 

U.S. 10-year treasury yield fell 4 bps to 4.313%. Dollar index was flat at 104.21. Gold fell half a percent to $2289 per ounce.

 

WTI and Brent crude futures rose 1.4% each to settle at $86.59 and $90.65 a barrel respectively. It was the highest settlement price for both since Oct. 20.

 

In Europe, FTSE and DAX rose 0.5% and 0.2% respectively while CAC was little changed.

 

AT HOME

 

Sensex and Nifty ended higher by 0.5% and 0.4% after wild intraday swings, both hitting fresh record highs. Sensex settled at 74227, up 350 points while Nifty added 80 points to finish at 22514. Nifty mid-cap index was flat while small-cap index rose 0.4%. Nifty IT and Bank indices were the top gainers among the sectoral indices, up 1.1% and 0.9% respectively while Oil & Gas and PSU Bank indices were the top losers, down 1.4% and 0.7% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1136 cr, 754 cr and 6587 cr respectively. DIIs were net sellers to the tune of Rs 893 cr.

 

Rupee ended flat at 83.44/$.

 

India's S & P Global/HSBC March Services PMI rose to 61.2 from 60.3 in February. Composite PMI rose to 61.8 from 60.6.

 

OUTLOOK

 

Today morning, Nikkei is down 2.5% while Hang Seng and Shanghai are off 0.7% and 0.2% respectively. GIFT Nifty is suggesting around 70 points lower start for our market.

 

In yesterday's report we had said that report we had said that 22750 continued to be next upside target and that 22000 was the immediate support.

 

Nifty, after making a low of 22303, rebounded to end at 22514.

 

22750, around which upper end of a rising channel formation is placed, continues to be next upside level to eye; 22200, around which 20 and 34-DMAs are placed, continues to be a decent stop-loss for trading longs.

 

For Banknifty, 48636, the all-time high made in December, is the next upside level to eye; 47400 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

RBI's Monetary Policy Committee is expected to leave key interest rate unchanged when it announces it's decision today.

Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.