7770-7670 CONTINUE TO BE LEVELS TO EYE; US JOBS DATA IN FOCUS

7770-7670 CONTINUE TO BE LEVELS TO EYE; US JOBS DATA IN FOCUS

WORLD MARKETS                             

While Nasdaq closed flat, Dow and S & P 500 fell 0.2% each yesterday, the final trading day of the quarter, ahead of the monthly non-farm payroll report due today.

Initial jobless claims came in at 276,000. Chicago PMI rose to 53.6 in March from 47.6 in February.

US dollar index closed off the day low after falling 0.4% to hit its lowest since October. Gold rose $7 to $1236 an ounce.

Nymex oil closed off the day high, up 2 cents at $38.34 a barrel. Brent rose 0.8% or 34 cents to $39.60 a barrel.

European markets tumbled 05%-1.7% with Banking and Telecom stocks leading the declines.

AT HOME

Benchmark indices ended almost flat after the usual last hour expiry day volatility. Sensex settled at 25342, up 3 points while Nifty added 3 points to finish at 7738. BSE mid-cap and small-cap indices gained 0.7% and 0.5% respectively. BSE Consumer Durable and Power indices climbed 1.2% and 0.8% respectively, becoming top gainers among the sectoral indices while Metal and Oil & Gas indices fell 0.8% and 0.6% respectively, becoming top losers.

FIIs net bought stocks and index futures worth Rs 4057 cr and 3194 cr respectively but net sold stock futures worth Rs 658 cr. DIIs were net sellers to the tune of Rs 2891 cr.

Rupee appreciated 12 paise to end at 66.25/$.

For the month, Nifty gained 10.8%, marking the largest monthly gain since January 2012.

OUTLOOK

China's official manufacturing PMI for March has come in at 50.2, well above a forecast of 49.3 and up from 49 in February. The Caixin manufacturing PMI has rise to 49.7 from February's 48 level.

Nikkei is down about 2% following Bank of Japan's Tanken survey which showed big manufacturers' business sentiment at its lowest in nearly three years. Other Asian markets are trading with modest cuts and SGX Nifty is suggesting about 10 points lower opening for our market.

In yesterday's report we had mentioned that after Wednesday's big upmove, Nifty was back in the vicinity of 34-week moving average hurdle placed around 7770, a crossover of which is required for the fresh upmove. We had also advised holding on to trading longs with the stop loss of 7670, which is the immediate support on the hourly chart.

The benchmark, after touching a high of 7777, plunged to 7702 before recovering to close at 7738.

7770 continues to be important hurdle to eye, a crossover of which is required for fresh upmove. On the way down 7670 continues to be immediate support, which should serve as the stop loss for trading longs.

Automobile companies will report their March sales figures today.

Aurobindo Pharma, Bharti Infratel, Eicher Motors and Tata Motors DVR willl start trading in derivative segment of NSE from today.

Key data to watch out today would be the US non-farm payroll for March where addition of 205000 jobs is expected as against 242000 the previous month.

NIFTY BACK IN THE VICINITY OF 7770 HURDLE; 7670 IS THE IMMEDIATE SUPPORT

NIFTY BACK IN THE VICINITY OF 7770 HURDLE; 7670 IS THE IMMEDIATE SUPPORT

WORLD MARKETS                             

US indices gained about half a percent, but closed off the day high yesterday, nevertheless extending Tuesday's gains following Fed Chair Janet Yellen's cautious stance on the path of tightening. 

Dollar index recovered from day low to end 0.4% lower for its third-straight day of decline. Euro hit $1.1364, its highest since Feb 11.

Nymex oil settled up 4 cents at $38.32 a barrel while Brent rose 12 cents to $39.26. EIA announced that U.S. crude stockpiles had risen by 2.3 million barrels in the last week.

European markets, supported by a solid recovery in commodity stocks, gained 0.7%-1.8% with French CAC leading the gains.

AT HOME

After a two day retreat, bulls were back with a vengeance as benchmark indices soared 1.8% to close at the highest level since 6th January. Sensex soared 438 points to settle at 25339 while Nifty finished at 7735, up 138 points. BSE mid-cap and small-cap indices also gained 1.8% each. Except a 0.1% cut in Telecom index, all the sectoral indices ended in green with Realty index and Bankex leading the tally, up 3.8% and 3.1% respectively.

FIIs net bought stocks and index futures worth Rs 1443 cr and 395 cr respectively but net sold stock futures worth Rs 565 cr. DIIs were net sellers to the tune of Rs 397 cr.

Rupee appreciated 17 paise to end at 66.37/$.

OUTLOOK

Today morning, Asian markets are trading with modest gains and SGX Nifty is suggesting about 10 points higher opening for our market.

In yesterday's report we had mentioned that 7670 is the immediate hurdle on the hourly chart which should serve as the stop loss for trading shorts.

The benchmark crossed this hurdle in the morning trade itself and surged all the way to 7742 before closing at 7735.

After yesterday's big upmove, Nifty is back in the vicinity of 34-week moving average hurdle placed around 7770. Upon sustained trading above it, next big hurdle as well as the target to watch out would be 200-DMA placed around 7900.

Meanwhile trading longs can be held on to with the stop loss of 7670, which is the immediate support on the hourly chart.

DOVISH YELLEN LIFTS WORLD EQUITIES; 7670 IS THE IMMEDIATE HURDLE FOR NIFTY

DOVISH YELLEN LIFTS WORLD EQUITIES; 7670 IS THE IMMEDIATE HURDLE FOR NIFTY

WORLD MARKETS                             

US indices gained 0.6%-1.7% yesterday with tech stocks leading the gains after remarks from Federal Reserve chair Janet Yellen appeared dovish enough to assuage concerns about a near-term interest rate hike. Both S & P 500 and Dow closed at their highest levels of the year so far.

Yellen, in her prepared remarks at the Economic Club of New York said that economic readings are mixed and it is appropriate to proceed cautiously in adjusting policy.

Following the comments, Dollar index fell more than 0.8% for its worst day since March 17. Gold gained $16 to $1236 an ounce, for its first positive day in four.

Nymex oil fell $1.11 to $38.28 a barrel and Brent fell $1.13 to $39.14 after the decision by Kuwait and Saudi Arabia to resume oil production at the jointly operated 300,000-barrel-per-day Khafji field.

In economic news, the S&P/Case-Shiller 20-City Composite Index for January showed a 5.7% rise from the previous year.

European markets gained upto 0.8% with DAX leading the gains.

AT HOME

Benchmark indices ended lower by a fourth of a percent after a choppy trade, extending the losing streak to second straight day. Sensex settled at 24900, down 66 points while Nifty lost 18 points to finish at 7597. BSE mid-cap and small-cap indices lost 0.2% and 0.3% respectively. BSE Healthcare index tumbled 2.6%, becoming top loser among the sectoral indices, followed by 1% cut in Capital Goods index.

FIIs net bought stocks and index futures worth Rs 513 cr and 208 cr respectively but net sold stock futures worth Rs 756 cr. DIIs were net sellers to the tune of Rs 557 cr.

Rupee appreciated 3 paise to end at 66.54/$.

Lupin plunged 6% after reports that the company's Mandideep unit in Madhya Pradesh has received observations from the US Foods and Drug Administration.

OUTLOOK

Today morning, Nikkei is trading with modest cuts while Shanghai Composite and Hang Seng are up about a percent and half. SGX Nifty is suggesting about 50 points higher opening for our market.

Nifty, after breaking 7600 support in intraday trade on Monday, closed below this level yesterday. While the benchmark is in "Buy" mode on the daily chart, hourly chart is in "Sell" mode. Short term traders should hold short positions with the stop loss of 7670, which is the immediate hurdle on the hourly chart.

7400, the 38.2% retracement of the 6825-7750 upmove, continues to be the major downside target.

NIFTY RESISTED NEAR 34-WEEK MOVING AVERAGE

NIFTY RESISTED NEAR 34-WEEK MOVING AVERAGE

WORLD MARKETS                             

Dow and S & P 500 ended marginally higher while Nasdaq lost 0.1% yesterday.

Consumer spending rose 0.1% in February, after January's figure was revised lower to show a 0.1% gain versus the previously reported 0.5% rise. Personal income rose 0.2%. Excluding food and energy, prices gained 0.1% after advancing 0.3% in January. In the 12 months through February, the core PCE price index increased 1.7% after a similar increase in January. Pending home sales index rose 3.5% to 109.1 last month, the highest level in seven months. January's reading was revised to show a 3% decline, which was deeper than initially reported.

The advance February goods trade deficit came in wider than estimated at $62.86 billion. This, along with the downward revision in January consumption prompted several cuts to first-quarter GDP estimates. On Friday, third GDP estimate for the fourth quarter showed an annual growth rate of 1.4% instead of the previously reported 1.0% pace.

Nymex oil settled down 0.2% at $39.39 a barrel. Dollar index fell for the first time in six sessions.

European markets were closed for Easter Monday.

AT HOME

After a flattish start, benchmark indices saw a sustained downward move through the session to end with deep cuts of nearly a percent and third, breaking six-day winning streak. Sensex lost 371 points to settle at 24966 while Nifty ended at 7615, down 101 points. BSE mid-cap and small-cap indices fell 1.4% and 1.6% respectively. All the BSE sectoral indices ended in red with Realty and Metal indices leading the tally, down 4.3% and 3.9% respectively.

FIIs net bought stocks worth Rs 2043 cr but net sold index futures and stock futures worth Rs 161 cr and 1787 cr respectively. DIIs were net sellers to the tune of Rs 2494 cr.

Rupee appreciated 6 paise to end at 66.58/$.

Defence Minister Manohar Parrikar yesterday unveiled the much-awaited Defence Procurement Procedure, saying it will ensure transparency and speed in acquisition process and boost the ‘Make in India’ initiative to reduce dependence on exports.

OUTLOOK

Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points higher opening for our market.

Just to reiterate, we have been working with the target of 34-week moving average ever since 7540-7600 hurdle was taken out. Nifty yesterday touched a high of 7749, coming in very close to 34-week moving average, which is now placed around 7765, but witnessed sever profit booking from there to end at 7615.

In intraday trade, the benchmark touched a low of 7588, breaking the immediate support of 7600 and generating a sell on the hourly chart.

A breach of 7588 would open up the space for the further downside till about 7400, which is the 38.2% retracement level of the 6826-7749 pullback rally.

On the way up 7765, the 34-week moving average continues to be major resistance to eye, a crossover of which is required for fresh upmove.

NIFTY EXTENDS CONSOLIDATION; 7600-7800 C0NTINUE TO BE LEVELS TO EYE

NIFTY EXTENDS CONSOLIDATION; 7600-7800 C0NTINUE TO BE LEVELS TO EYE

WORLD MARKETS                             

US indices ended little changed after recovering from session lows on Thursday before closing for a long weekend as oil prices recovered from session lows and the U.S. dollar index gave back some gains.

St. Louis Federal Reserve President James Bullard said the Fed's next interest rate hike "may not be far off," provided the economy evolves as expected.

US crude settled down 33 cents or 0.8% at $39.46 a barrel. U.S. Energy Information Administration on Wednesday said that stockpiles had risen by 9.4 million barrels in the previous week, three times more than the. On the other hand, the weekly oil rig count, released Thursday due to the Good Friday holiday, showed a drop of 15 oil rigs.

Weekly jobless claims came in at 265,000. February durable goods orders declined 2.8%. The Markit flash U.S. services PMI was 51.0 in March, up from 49.7 in February.

European markets, weighed down by fresh concerns over U.S. interest rate hikes and another day of losses in commodity markets, ended with cuts of 1.5%-2.1%.

For the week, Dow and Nasdaq lost half a percent and S & P 500 fell 0.7%, breaking five-week winning streak. European markets saw cuts ranging from 0.4%-2.3% with CAC leading on the way down. Gold fell 2.6% for its worst week since Nov. 6. Nymex crude fell 5% for its first weekly loss since mid-February.

AT HOME

Wednesday was yet another day of consolidation as benchmark indices, after falling about half a percent in the first half, recouped all the losses in later half to end little changed before closing for long weekend. Sensex settled at 25338, up 7 points while Nifty rose2 points to finish at 7717. BSE mid-cap and small-cap indices gained 0.2% each. BSE Metal and Telecom indices climbed 1.7% and 1.2% respectively, becoming top gainers among the sectoral indices while Energy and Oil & Gas indices were the top losers, down 1.1% each.

FIIs net bought stocks and index futures worth Rs 977 cr and 740 cr respectively but net sold stock futures worth Rs 1082 cr. DIIs were net sellers to the tune of Rs 1023 cr.

Rupee appreciated 7 paise to end at 66.64/$.

For the week, Sensex and Nifty gained 1.5% each, extending the winning streak to fourth straight week.

Accenture reported better-than-expected Q2 revenue growth of 12% yoy. The company also raised full year revenue growth guidance from 6-9% to 8-10%.

OUTLOOK

Today morning, Asian markets are trading with gains of upto 0.7%. SGX Nifty is trading around 7700, which is down about 35 points from Wednesday's close of Nifty future.

Readers would recall that ever since Nifty took out 7540-7600 hurdle, we have been working with the target of 34-week moving average, which is currently placed around 7790.

That continues to be the upside target to eye.

7600, the erstwhile resistance, continues to be immediate support to eye, with the stop loss of which trading longs should be held on to.

7800 CONTINUES TO BE UPSIDE TARGET; 7600 CONTINUES TO BE IMMEDIATE SUPPORT

7800 CONTINUES TO BE UPSIDE TARGET; 7600 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS                             

Dow and S & P 500 ended lower by 0.2% and 0.1% respectively while Nasdaq gained 0.3% yesterday amid news of explosions in Belgium's capital. Dow broke seven day winning streak.

A series of deadly explosions rocked Brussels, targeting the Belgian capital's main airport and metro system which killed at least 31 people and injured nearly 200.

Markit's flash U.S. manufacturing PMI came in at 51.4. Home prices rose 0.5% in January on a seasonally adjusted basis from the previous month. The Richmond Fed manufacturing index rose in March to 22, the highest since April 2010.

Nymex crude fell 7 cents to $41.45 while Brent rose 25 cents to $41.79 a barrel. Gold rose $4.40 to $1249 an ounce.

European markets came off session lows to end with gains of upto 0.4% with DAX leading the gains. The pan-European STOXX 600 provisionally closed lower by 0.21%.

AT HOME

After Monday's big upmove, yesterday was a day of consolidation as benchmark indices, after a heavy intraday volatility, ended modestly higher, nevertheless, extending the rising streak to fifth straight day. Sensex settled at 25330, up 45 points while Nifty added 11 points to finish at 7715. BSE mid-cap and small-cap indices gained 0.5% and 0.3% respectively. Except a 1.2% and 0.01% cut in FMCG index and Bankex, all the BSE sectoral indices ended in green with Realty and Consumer Durable indices leading the tally, up 2.7% and 1.6% respectively.

FIIs net bought stocks and index futures worth Rs 1095 cr and 200 cr respectively but net sold stock futures worth Rs 1127 cr. DIIs were net sellers to the tune of Rs 930 cr.

Rupee depreciated 18 paise to end at 66.71/$.

OUTLOOK

Today morning, Asian markets are trading with modest cuts and SGX Nifty is suggesting a flattish start for our market.

Nifty yesterday ended modestly higher after a choppy session. 7790, where 34-week moving average is placed, continues to be upside hurdle as well as the target to eye.

7600, the erstwhile resistance, continues to be immediate support, with the stop loss of which trading longs should be held on to.

Indian market will remain shut tomorrow for Holi and on Friday on occasion of Good Friday. 

NIFTY SURGES TOWARDS 7800 TARGET; TRAIL STOP LOSS TO 7600

NIFTY SURGES TOWARDS 7800 TARGET; TRAIL STOP LOSS TO 7600

WORLD MARKETS                             

Dow and S & P 500 gained 0.1% each while Nasdaq rose 0.3% yesterday

Existing home sales declined 7.1% in February to an annual rate of 5.08 million units, the lowest level since November. Chicago Fed national activity index posted a decline to minus 0.29 in February from 0.41 in January.

Nymex crude April future rose 47 cents or 1.2% to $39.91 a barrel after data showed crude inventories at the Cushing, Oklahoma, delivery hub for U.S. futures fell for the first time since January. Brent rose 34 cents or 0.8% to $41.54 .

European markets, except a half a percent higher Italy, lost upto 0.8%.

Earlier, Shanghai composite surged more than 2% after state-backed China Securities Finance, which lends brokerages money to fund margin financing, late Friday said it would resume some short-term lending businesses and cut borrowing costs for brokerages.

Gold fell $10 to $1244 an ounce.

AT HOME

After a positive start, benchmark indices builded on the initial gains through the session to finish with hefty gains of a percent and a third and closing at the highest level since 6th January. Sensex soared 333 points to settle at 25285 while Nifty finished at 7704, up 100 points. BSE mid-cap and small-cap indices climbed 1.4% each. All the BSE sectoral indices ended higher with Industrial and Capital Goods indices leading the tally, up 2.2% and 2% respectively.

FIIs net bought stocks and index futures worth Rs 1396 cr and 251 cr respectively but net sold stock futures worth Rs 78 cr. DIIs were net sellers to the tune of Rs 619 cr.

Rupee depreciated 3 paise to end at 66.53/$.

OUTLOOK

Today morning Nikkei, after yesterday’s holiday, has opened up about 2%, other Asian markets are trading mixed and SGX Nifty is suggesting a marginally higher start for our market.

In yesterday's report we had clearly mentioned that having taken out the 7600 hurdle decisively, Nifty is now headed to 7800, where the 34-week moving average is placed. The benchmark soared 100 points to finish at 7704, moving towards 7800 target and vindicating our view.

7800 continues to be major upside target to eye. 7600, the erstwhile resistance, will now act as the immediate support, with the stop loss of which trading longs should be held on to.