Traders to watch Global trends, FII, DII investments closely - Epic Research

Mr. Mustafa Nadeem, CEO, Epic Research

Nifty Index fell 64 Points and closed at 10115. It was a Gap-down opening for the Index. For the initial Hours Markets covered the opening Gap and inched up higher to previous day's lows at 10160 levels. The last hour selling and expiry of March contract pushed down Nifty and Bank Nifty to close 64 Points and 137.25 Points respectively. Both the Major Indices have been struggling to break the Major Weekly Resistances. The current trading week is short as we have holidays for next two days. The volatility in following week may expand as a lot of International and Domestic Cues are lined up.

Major Heavyweights like BHARTIARTL, TATASTEEL and RELIANCE were down more than 2%. IT Sector was mildly positive on expectation of an appreciating Dollar. Wipro and TECHM were up 2-4%. The Midcap Index was down by over 1%. All the Sector Indices, except for IT, closed Negative.

Nifty and Bank Nifty are finding it difficult to close above previous week's highs. Once that happens, we may see a rally to 10350-10400 Levels. The Major hurdle for Nifty comes at 10200-10266 and for Bank Nifty it comes at 24520-24600 Levels. Major Support for Nifty is placed at 9960 and for Bank nifty at 23600 levels. The recent Sell-off has left everybody on the sidelines. The positions built across 10500 levels suggest that bears are in control. Markets will have to close above the Resistance levels and sustain there for the Bulls to comeback and take Charge.

Global Cues and Data

The Global Cues have a been warning a downside momentum. The Backdoor meeting between US and China are reported but the overall bearishness prevails. The signs of Diplomatic war between the Russia and US and its allies have also raised doubts among the International Investors. Major US Tech Stocks were down over concern that they will be brought under tighter security norms post the recent FB Data leak.

We have Stock specific changes in Nifty where Bajajfinserv, Grasim and Titan will replace Auro Pharma, Ambuja Cem and Bosch from 2nd April.

The Week ahead will determine the course of the Markets. Q4 US GDP Numbers will be released tonight followed by UK's Q4 GDP data tomorrow. The US Economy has been showing an annualized Japan's Feb Industrial Production Data will be released on 30 March. Nikkie's Indian PMI data, Purchasing Manager Index which surveys Purchasing Managers across the Manufacturing Industry, on India to be released in First week of April. The consensus estimates are at 52.8 as against previous reading of 52.1. A reading above 50 is positive for the Industry. PMI for China and Major European Economies are lined up in First week of April.

The RBI's Monetary Policy Committee will meet on 4 and 5 April for the first bi-monthly monetary policy for 2018-2019. The resolutions will be announced on Thursday, 5 April. We have to see if RBI does act on the current Market situation.

Global Trends, Investments by FIIs and Domestic Institutions and the strength of Dollar against Indian Rupee will be watched closely by Traders.

Source : Equity Bulls

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