NIFTY FAILS TO CLOSE ABOVE 8275; 8200 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY FAILS TO CLOSE ABOVE 8275; 8200 CONTINUES TO BE IMMEDIATE SUPPORT
WORLD MARKETS                             
US indices gained 0.3%-0.6% on Friday, digesting December employment report with technology stocks leading the gains. All three indices hit fresh record highs.
The U.S. economy added 156,000 jobs in December, lower than the estimated 178,000 figure. The unemployment rate came in at 4.7%, in line with expectations. Average hourly wages rose 10 cents to $26, representing a 2.9% annualized gain. November factory orders fell 2.4%, more than expected.
Dollar index rose 0.7%. Treasury prices fell, with the 10-year note yield rising to 2.418% and the two-year note yield climbing to 1.218%.  Gold fell 0.7% to $1172 per ounce.
European markets added upto 0.3%. Retail sales in the euro zone dropped 0.4% month-on-month in November. The year-on-year figure increased 2.3% from a revised 3% rate in October. The economic confidence index jumped to 107.8 in December from a revised figure of 106.6 in November.
For the week, US indices gained between 1% to 2.6% and scaled fresh record highs. Main European markets rose 1% each. In Asia, Hang Seng climbed 2.3%, Nikkei rose 1.8% and Shanghai was up 1.6%.
AT HOME
After gaining about four tenth of a percent in the initial trade, benchmark indices saw a sustained downward move through the session to end lower by four tenth of a percent. Sensex lost 119 points to settle at 26759 while Nifty lost 30 points to finish at 8244. BSE mid-cap and small-cap indices fell 0.3% and 0.4% respectively. BSE IT and Teck indices tumbled 2.5% and 2.2% respectively to become top losers among the sectoral indices while Bankex and Finance indices were the top gainers, up 0.9% and 0.6% respectively.
FIIs net sold stocks worth Rs 255 cr but net bought index futures and stock futures worth Rs 510 cr and 169 cr respectively. DIIs were net buyers to the tune of Rs 165 cr.
Rupee ended unchanged at 67.96/$.
For the week, Sensex and Nifty gained 0.5% and 0.7% respectively, extending the winning streak to second consecutive week.
IT stocks tumbled after The Protect and Grow American Jobs Act “was reintroduced on Thursday in the US parliament. The act proposes to raise the minimum salary of H1B visa aspirants to USD 1 lakh per annum from the current USD 60,000. Besides, the proposed US immigration reforms seeks to make a Masters degree mandatory for H1B visa holders.
OUTLOOK
Today morning Asian markets are trading mixed with modest changes and SGX Nifty is suggesting about 15 points higher start for our market.
While Nifty achieved the big 8275 target on Thursday, it failed to decisively take it out and close above it. On Friday, after touching a high of 8307, the benchmark slipped to end at 8244.
Remember, 8275 is the top made in December and also coincides with the 200 DMA.
Once 8275 is taken out decisively, 8400-8450, the region where 20 as well as 34-week moving averages are placed, would be the next target area to eye.

Meanwhile, immediate support on the hourly chart has moved up to 8200, with the stop-loss of which trading longs can be held on to.
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STAY LONG WITH THE STOP-LOSS OF 9115

STAY LONG WITH THE STOP-LOSS OF 9115

WORLD MARKETS

Dow and S & P 500 fell 0.3% and 0.2% respectively while Nasdaq lost 0.04% on Friday.

Personal income rose 0.4% in February, in line with expectations, while consumer spending rose 0.1%, below an expected increase of 0.2%. The PCE price index — an indicator of inflation — rose 2.1% y-o-y, while core PCE increased 1.8%. The Chicago manufacturing PMI rose to 57.7 in March from 57.4 in February. Consumer sentiment hit 96.9 versus an expected read of 97.6.

European markets, except a 0.6% lower FTSE, gained 0.5%-0.6%. U.K. released its latest gross domestic product (GDP) figures which showed growth of 0.7 percent for the quarter and 1.9 percent compared to the year previous. The European Union published its draft of Brexit negotiating guidelines on Friday which showed the bloc is ready to discuss a potential free trade deal with Britain before the two sides have agreed on the final terms of the break-up.
U.S. President Trump said that the U.S. will take unilateral action to eliminate nuclear threats from North Korea, unless China, one of North Korea’s closest ally, intensifies pressure on it. These comments come ahead of a two-day meeting this week in Florida with Chinese President Xi Jinping.

For the week, US indices gained 0.3%-1.4%.  In Europe, FTSE fell 0.2% but DAX and CAC climbed 2% each. Asian markets ended in red with Nikkei down 1.8%, Shanghai off -1.4% and Hang Seng lower by 1%. Indian markets however gained 0.7%.

                                                             

AT HOME

Benchmark indices ended little changed after a ragebound but choppy trade on the last day of the fiscal year. Sensex settled at 29620, down 27 points while Nifty ended absolutely flat at 9174. BSE mid-cap and small-cap indices however climbed 0.8% and 0.7% respectively. BSE Energy index soared 2.5%, becoming top gainer among the sectoral indices, followed by 1.8% rise in Oil & Gas index. Telecom index and Bankex were the top losers, down 0.9% and 0.7% respectively.

FIIs net sold stocks and stock futures worth Rs 296 cr and 304 cr respectively but net bought index futures worth Rs 68 cr. DIIs were net buyers to the tune of Rs 1499 cr.

Rupee ended flat at 65.0950/$.
For the week, Sensex and Nifty gained 0.7% each with Nifty closing at fresh record high on weekly basis.

For the fiscal 2017, Sensex and Nifty gained 16.9% and 18.6% respectively.

Government lowered interest rates on small saving schemes like PPF, Kisan Vikas Patra and Sukanya Samriddhi scheme by 0.1% for the April-June quarter.

The union cabinet on Friday approved changes to the companies and motor vehicle bills. It also fixed subsidy rates for phosphatic and potassic fertilisers and approved a plan to boost domestic urea production. Separately, the cabinet committee on economic affairs cleared changes to the Mega Power Policy.

The amended motor vehicle bill proposes a hefty penalty on auto companies caught manufacturing faulty vehicles, statuary guidelines for cab aggregators and a 10% annual increase in penalty for traffic violations.  The government has also proposed specific timelines for processing insurance claim.

Cabinet approved amendment to New Urea Policy-2015, allowing for production beyond the re-assessed capacity, which is expected to push domestic production of this key fertiliser. The subsidy for Phosphatic and Potassic nutrients has been lowered while that for Nitrogen and Sulphur has been raised.

The changes to the mega power policy will benefit 24 plants of 30,000-mw capacity to the tune of more than Rs 10,000 crore.
Maruti reported 8.1% rise in March sales at 1.39 lac units. Eicher Motors’s Royeal Enfield sales were up 17% at 60113 units and CV sales rose 8.5% to 7327 units. M & M tractor sales were up 32% at 19337 units while total sales were up 6% at 56031 units. SML Isuzu saw 26.4% growth at 2094 units.

Oil marketing companies cut petrol and diesel price by Rs 3.77 and 2.91 a liter, marking the first change in rates in two-and-a-half months.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.2%-0.4% and SGX Nifty is suggesting about 20 points higher start for our market.

Just to reiterate, we have been working with target of 9218 after immediate hurdle of 9130 was taken out. The benchmark touched a high of 9192 but closed at 9174 and is set to open higher today.

9218, the top made on 17th March, continues to be immediate hurdle, upon decisive crossover of which, 9400-9420 would be the next major target to eye.

Immediate support on the hourly chart has moved up to 9115, with the stop-loss of which trading longs should be held on to.

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  • STAY LONG WITH THE STOP-LOSS OF 9115
  • STAY LONG WITH THE STOP-LOSS OF 9115
  • STAY LONG WITH THE STOP-LOSS OF 9110
  • STAY LONG WITH THE STOP-LOSS OF 9110
  • STAY LONG WITH THE STOP-LOSS OF 9110
  • STAY LONG WITH THE STOP-LOSS OF 9110
  • STAY LONG WITH THE STOP-LOSS OF 9110
  • STAY LONG WITH THE STOP-LOSS OF 9110
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