10300-10100 IS THE IMMEDIATE RANGE

10300-10100 IS THE IMMEDIATE RANGE

WORLD MARKETS

After opening with cuts of 1.5%-2% on the back of China unveiling plans for additional tariffs on 106 U.S. products, US indices soared 2-3% through the session to end with gains of 1%-1.4%

China announced 25% levy on 106 U.S. products which includes soybeans, cars and whisky, less than 24 hours after Trump revealed plans for a 25% tariff on some 1,300 Chinese industrial technology, transport and medical products.

The recovery happened on hopes of potential negotiation between the two countries as Larry Kudlow, Trump's chief economic advisor, told reporters: "He wants to solve this with the least amount of pain”.

ADP National Employment Report showed private companies added 241,000 jobs in March, more than the expected gain of 205,000. The services PMI slipped to 54.0 in March from 55.9 in February. Non-manufacturing ISM index came in at 58.8 for last month, missing expectations.

European market, except a flat FTSE, fell 0.2%-0.4%.

AT HOME

After rising about a third of a percent in the morning, benchmark indices nosedived a percent and half from the top on account of US-China trade war to end lower by more than a percent. Sensex settled at 33019, down 352 points while Nifty lost 117 points to finish at 10128. BSE mid-cap and small-cap indices tumbled 0.9% and 1% respectively. Except a 0.4% higher Auto index, all the BSE sectoral indices ended in red with Metal and Consumer Durable indices leading the fall, down 2.8% and 2.6% respectively.

FIIs net bought stocks and stock future worth Rs 335 cr and 59 cr respectively but net sold index futures worth Rs 1152 cr. DIIs were net sellers to the tune of Rs 153 cr.

Rupee depreciated 13 paise to end at 65.14/$.

OUTLOOK

While Hang Seng and Shanghai are shut today, Nikkei is up nearly a percent and SGX Nifty is suggesting about 130 points higher start for our market.

After Nifty achieved 10227 target, we had given next target of 10320, where 34-DMA was placed. Yesterday, Nifty, after touching a high of 10280, plunged to end at 10128 but is set to open above 10250 today.

34-DMA, which has now moved closer to 10300, continues to be important immediate hurdle, a crossover of which is required for a fresh upmove. On the way down, 10100, the bottom made last Wednesday, is the immediate support.

This makes 10100-10300 immediate range, a crossover of which, on either side, should be awaited, for taking a fresh call on Nifty.

Monetary policy committee led by RBI, is expected to leave key rates unchanged in its first meeting of new fiscal. As always, commentary would be important to gauge future trajectory of rate.