8333 IMPORTANT HURDLE; 8090 IMMEDIATE SUPPORT

8333 IMPORTANT HURDLE; 8090 IMMEDIATE SUPPORT

WORLD MARKETS                             

Dow and S & P 500 gained 0.1% while Nasdaq lost 0.1% on Friday as disappointing data weighed on investor sentiment amid dollar decline and lower bond yields.

University of Michigan's consumer sentiment report came in at 88.6, the lowest in 7 months. Industrial production fell 0.3% in April, the fifth straight month of declines as reduced mining and utilities output weighed. Empire Manufacturing data showed a reading of 3.09, below expectations of 5 but above last month's negative figure.

Crude oil settled down 19 cents at $59.69 a barrel, eking out a weekly gain for an unprecedented 9th week in a row.

10-year yield edged lower to 2.14% and the 30-year yield at 2.92%. The German 10-year bund yield declined to 0.62%. The U.S. dollar declined for the fifth straight week, the longest weekly losing streak since December 2013. The euro gained to $1.1448.

European markets lost 0.2%-1%.

For the week, US indices gained 0.3%-0.9%. European markets however, except a 0.7% higher Italy, lost 1%-2.2%.

AT HOME

Benchmark indices managed to end higher by four tenth of a percent after a choppy trading session. Sensex settled at 27324, up 118 points while Nifty gained 38 points to finish at 8262. BSE mid-cap and small-cap indices gained 0.4% and 0.6% respectively. BSE Realty and Metal indices plunged 1.3% and 1% respectively, becoming top losers among the sectoral indices while Consumer Durable and FMCG indices were the top gainers, putting on 0.8% and 0.7% respectively.

FIIs net sold stocks and index futures worth Rs 38 cr and 131 cr respectively but net bought stock futures worth Rs 125 cr. DIIs were net buyers to the tune of Rs 564 cr.

Rupee appreciated 14 paise to end at 63.50/$.

For the week, Sensex and Nifty gained 0.8% and 0.9% respectively. 

India's trade deficit in April narrowed to USD 10.99 bn from 11.79 bn in March. Exports stood at 22.05 bn (down from 23.95 bn) while imports came in at 33.05 bn vs 35.74 bn. Gold imports fell to 3.13 bn from 4.98 bn.

Oil marketing companies hiked petrol and diesel price by Rs 3.13 and 2.71 a litre respectively on Friday, the second straight steep increase in rates this month.

OUTLOOK

Today morning, except a half a percent higher Nikkei, other Asian markets are trading with cuts of upto half a percent and SGX Nifty is suggesting about 10 points higher opening for our market.

Last week Nifty consolidated within the boundaries set in previous week, viz. 8355 on the upside and 7997 on the downside. The top and bottom made last week were 8333 and 8090 respectively. These will be immediate resistance and support levels respectively.

Moreover a crossover of 8333 will also confirm a higher-top higher-bottom formation on the daily chart for the first time after the correction from 9119 started.

8600, where the trendline adjoining tops made in March and April is placed, would be the next major target if that happens.

On the flip side, a breach of 8090 would take the Nifty back to the crucial 8000-7961 support area.

Traders are advised to wait for the crossover of 8333 for taking fresh longs.

Asian Paint will report its quarterly earnings today.