NIFTY REBOUNDS FROM 10200 SUPPORT; 10553 CONTINUES TO BE IMMEDIATE HURDLE

NIFTY REBOUNDS FROM 10200 SUPPORT; 10553 CONTINUES TO BE IMMEDIATE HURDLE

WORLD MARKETS

After opening in red, US indices ended with gains of 1.1%-1.2% thanks to last hour surge as bank stocks jumped after Fed and four regulatory agencies announced they were going to change a rule that has limited banks’ ability to make investments.

US weekly jobless claims totaled 1.5 million last week, slightly higher than the estimate of 1.3 million.

Meanwhile, more than 45,000 new coronavirus cases were confirmed in the US on Wednesday, a record that surpassed the previous April 26 peak by over 9,000 cases.

Brent crude rose 74 cents, or 1.8%, to $41.05, while WTI settled 71 cents, or 1.87%, higher at $38.72 per barrel.

European markets rose 0.4%-1%.

In an after market development, US Federal Reserve's annual stress test found that several banks could get close to minimum capital levels in scenarios related to the coronavirus pandemic. As a result, banks have to suspend share buyback programs and leave dividend payments at current levels for the third quarter. The report sent some bank shares lower in after-hours trading.

Nike shares slid nearly 4% after the bell on the back of a surprising quarterly loss for the apparel giant.

AT HOME

It was a day of consolidation as benchmark indices ended marginally lower after a range bound but choppy session. Sensex settled at 34842, down 26 points while Nifty lost 16 points to finish at 10288. BSE mid-cap and small-cap indices gained 0.6% and 0.8% respectively.  BSE IT and Teck indices slipped 1.6% and 1.2% respectively, becoming top losers among the sectoral indices while FMCG index climbed 2.2%, becoming top gainer, followed by 1% higher Healthcare index.

FIIs net sold stocks and index futures worth Rs 1051 cr and 1002 cr respectively but net bought stocks futures worth Rs 734 cr. DIIs were net sellers to the tune of Rs 256 cr.

Rupee appreciated 5 paise to end at 75.66/$.

For the June derivative series, Nifty gained 8.4%.

OUTLOOK

Today morning, Shanghai is shut while Nikkei is up 1% and Hang Seng is down 0.2%. SGX Nifty is suggesting around 60 points higher start for our market.

In yesterday's report we had said that immediate support on the hourly chart had moved up to 10200 while 10553, the top made Wednesday, was the important resistance.

Nifty, after touching a low of 10194, rebounded to close at 10288 and is set to open near 10350 today.

10200 continues to be immediate support, upon sustained trading below which, 10050 and 9880, the 50% and 67% retracement levels of the recent 9544-10553 upmove, would be next supports to eye.

10553, the top made Wednesday, which also coincided with the 61.8% retracement level of the entire 12430-7511 fall, continues to be important resistance, a corssover of which is required for a fresh upmove.

ITC will report its quarterly earnings today.