NIFTY FAILS TO CROSS 8435 HUMP; 8370 CONTINUES TO BE IMMEDIATE SUPPORT

NIFTY FAILS TO CROSS 8435 HUMP; 8370 CONTINUES TO BE IMMEDIATE SUPPORT
WORLD MARKETS                             
Dow lost 0.1% while S & P 500 and Nasdaq gained 0.2% and 0.3% respectively after digesting remarks from Yellen, corporate earnings and economic data.
In prepared remarks, Yellen said the U.S. economy was closing in on the central bank’s goals, giving it impetus to start reducing the extreme levels of support it has provided over the past decade.
Fed released its latest Beige Book, which said that a pickup in manufacturing, “widespread” reports of labor shortages and improving business investment set the stage for the Fed’s December rate hike.
In economic news, the Consumer Price Index rose 0.3%, in line with expectations, putting it up 2.1% y-o-y. This was also the first time CPI rose above 2% since 2014. Industrial production grew 0.8% in December and the NAHB survey for January showed homebuilder sentiment pull back slightly.
Remarks from Yellen, stronger U.S. data and a positive Beige book pushed the dollar to 101.30, up nearly a percent. Treasury yields rose with benchmark 10-year note yielding 2.42%.
Goldman Sachs and Citigroup posted better-than-expected earnings.
Oil slipped with Brent down 2.8% at $53.92 a barrel and WTI down 2.7% at $51.08.
European markets, except a 0.1% lower CAC, gained 0.3%-0.5%.
AT HOME
After gaining about three fourth of a percent in first hour and half, benchmark indices gave away quite a bit of them through the session to end just marginally higher. Sensex settled at 27255, up 22 points while Nifty added 19 point to finish at 8417. BSE mid-cap and small-cap indices rose 0.4% and 0.6% respectively. BSE Metal and Basic Material indices climbed 2.3% and 1.9% respectively to become top gainers among the sectoral indices while Telecom and Oil & Gas indices were the top losers, down 0.9% and 0.2% respectively.

FIIs net bought stocks and stock futures worth Rs 319 cr and 245 cr respectively but net sold index futures worth Rs 896 cr. DIIs were net buyers to the tune of Rs 245 cr.
Rupee depreciated 13 paise to end at 68.08/$.
The Cabinet yesterday approved plans to divest a 25% stake in each of the five fully-owned public sector general insurance companies by listing these on stock exchanges.
OUTLOOK
Today morning Nikkei is up more than a percent while Hang Seng and Shanghai are down about four tenth of a percent. SGX Nifty is suggesting a flattish start for our market.
In yesterday’s report we had reiterated the view that a decisive crossover of 8435, where 34-week moving average is placed, is required for a fresh upmove.
The benchmark, after touching a high of 8460, slipped to end at 8417, failing to close above the 8435 hurdle.
Upon a decisive crossover of this hurdle, next target to eye would be 8560, which is the 61.8% retracement level of the 8970-7893 fall.
Meanwhile, 8370 is where Nifty has been taking support for past couple of days. If that is taken out, next support to eye would be 8300-8275 region where 8300 is 200-DMA and 8275 is the top made in December.
Traders are advised to hold on to long positions with the stop-loss of 8370.

Axis Ban and Yes Bank will report their quarterly earnings today.
Click here for reuse options!
Copyright 2017 einfoMet
Tweet about this on Twitter





Related News

WINNING TRADER V/S LOOSING TRADER

RepublishReprint WINNING TRADER V/S LOOSING TRADER   We tried to put few characteristic of winningRead More

Click here for reuse options!
Copyright 2017 einfoMet

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.

Click here for reuse options!
Copyright 2017 einfoMet

  • 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
  • Leave a Reply

    Your email address will not be published. Required fields are marked *

    CommentLuv badge

    Follow

    Get every new post delivered to your Inbox

    Join other followers: