Prudent Morning Mantra 19 03 2018

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Today morning, Nikkei is down more than a percent while Hang Seng and Shanghai are down 0.4% each. SGX Nifty is suggesting about 30 points lower start for our market. In Friday's report we had reiterated that 10270 is the immediate support, a breach of which would generate a "sell" on the hourly chart and 10141, the bottom made on 7th March, would be the next target to eye. Nifty broke 10270 support and plunged all the way to 10180 before closing at 10220 and is set to open below 10200 today. 200-DMA has now moved up to 10160 which makes 10160-10140 immediate support zone. In the event of 10140 not holding, next support will come around 10033, where the bottom made in December 2017, is placed. Meanwhile, immediate resistance on the hourly chart is placed around 10370, with the stop-loss of which, trading shorts can be held on to.
  • 1. PRUDENT MORNING MANTRA 10160-10140 IS THE IMMEDIATE SUPPORT ZONE; 10370 IMMEDIATE HURDLE WORLD MARKETS Nasdaq ended flat while Dow and S & P 500 gained 0.3% and 0.2% respectively Economic data was mixed. Housing starts declined 7% in February, a bigger-than-expected fall. Building permits fell 7.7% last month. Consumer sentiment rose to a level not seen since 2004 in March, according to a preliminary reading from the University of Michigan. The Labor Department said job openings increased to 6.3 million in January, a record. Media report suggested that Trump has decided to remove national security advisor H.R. McMaster from the U.S. administration. The Russian ruble hit a one-month low against the dollar Friday, amid escalating tensions between the Kremlin and the West and an election in Russia on Sunday. WTI oil rose 1.9% to $62.34 a barrel. European markets gained 0.3%-0.8%. Euro zone consumer prices grew less than expected in February. The bloc of 19 countries sharing the single currency saw inflation at 0.2 percent month- on-month and 1.1 percent year-on-year US indices were the worst performer, losing 1%-1.5%. In Europe, FTSE fell 0.8% but CAC and DAX rose 0.4% and 0.2% respectively. In Asia, Shanghai was down 1.1% but Nikkei and Hang Seng climbed 1% and 1.6% respectively. India ended with modest cuts. AT HOME Benchmark indices nosedived nearly a percent and half, registering biggest single day fall since 6th February. Sensex settled 510 points lower at 33176 while Nifty finished at 10195, down 165 points. BSE mid-cap and small-cap indices lost 1.1% and 1% respectively. All the BSE sectoral indices ended in red with Metal and Oil & Gas indices leading the tally, down 2.3% and 2.1% respectively. FIIs net sold stocks, index futures and stock futures worth Rs 150 cr, 2222 cr and 270 cr respectively. DIIs were net sellers to the tune of Rs 771 cr. Rupee depreciated 1 paise to end at 64.94/$. For the week, Sensex and Nifty lost 0.4% and 0.3% respectively, extending the losing streak to third straight week on political worries. According to balance of payments data released by the Reserve Bank of India, India's CAD stood at $13.5 billion or 2% of GDP in Q3FY18, compared with $8 billion or 1.4% of GDP in the year-ago quarter.
  • 2. OUTLOOK Today morning, Nikkei is down more than a percent while Hang Seng and Shanghai are down 0.4% each. SGX Nifty is suggesting about 30 points lower start for our market. In Friday's report we had reiterated that 10270 is the immediate support, a breach of which would generate a "sell" on the hourly chart and 10141, the bottom made on 7th March, would be the next target to eye. Nifty broke 10270 support and plunged all the way to 10180 before closing at 10220 and is set to open below 10200 today. 200-DMA has now moved up to 10160 which makes 10160-10140 immediate support zone. In the event of 10140 not holding, next support will come around 10033, where the bottom made in December 2017, is placed. Meanwhile, immediate resistance on the hourly chart is placed around 10370, with the stop-loss of which, trading shorts can be held on to. Disclaimer: This document has been prepared by Prudent Broking Services (P) Ltd. and is being distributed in India by Prudent Broking Services (P) Ltd., a registered broker dealer. The information in the document has been compiled by the research department. Due care has been taken in preparing the above document. However, this document is not, and should not be construed, as an offer to sell or solicitation to buy any securities. Any act of buying, selling or otherwise dealing in any securities referred to in this document shall be at investors sole risk and responsibility. This document may not be reproduced, distributed or published, in whole or in part, without prior permission from the Company. To unsubscribe, send a mail to equityresearch@prudentcorporate.com
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