14446 IS THE NEXT SUPPORT; 14855 IMMEDIATE HURDLE

 

14446 IS THE NEXT SUPPORT; 14855 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.5%-0.8% on Friday, the last trading day of the month, as one of the busiest weeks of the first quarter earnings reporting season came to a close.

 

Economic data came strong. March spending jumped a better-than-expected 4.2%, while personal incomes surged by a massive 21.1%. The PCE Price Index rose 0.5%, while the core PCE Index, which excludes food and energy, rose 0.4% in the month. Chicago PMI for April showed a reading of 72.1, the highest in almost four decades, amid more fiscal stimulus.

 

Brent crude fell 1.91%, or $1.31, to settle at $67.25 per barrel while WTI settled 2.2%, or $1.43, lower at $63.58 per barrel.

 

The yield on the benchmark 10-year Treasury note fell slightly to 1.629%. Dollar index jumped 0.7% at 91.263, the largest daily gain since late February. Spot gold fell 0.1% to $1,770.41 per ounce.

 

In Europe, except 0.1% higher FTSE, other markets fell 0.1%-0.6%

 

China’s official manufacturing purchasing managers index declined to 51.1 in April from 51.9 in March. Japan’s factory activity expanded in April at the fastest pace since early 2018 on a global demand recovery. China’s factory activity growth, however, slowed more than expected.

 

For the week, Dow and Nasdaq fell 0.5% and 0.4% respectively while S & P 500 was flat. Brent and WTI crude gained For the week Gold fell 0.3%. Dollar index ended the week up 0.5%.

 

For the month, US indices climbed 2.7%-5.4%. Brent and WTI crude climbed 8% and 10% respectively in April, marking the fifth monthly gains in six months. The dollar index was down 2.1% for the month of April, its largest monthly loss since December.

 

AT HOME

 

Sensex and Nifty nosedived 2% and 1.8% respectively on Friday, snapping 4-day winning streak. Sensex settled at 48782, down 983 points while Nifty lost 263 points to finish at 14631. Nifty mid-cap and small-cap indices fell 0.4% each. BSE Finance index and Bankex tumbled 2.7% and 2.6% respectively, becoming top losers among the sectoral indices while Oil & Gas and Healthcare indices were the top gainers, up 1.3% and 0.8% respectively.

 

FIIs net sold stocks and index futures worth Rs 3465 cr and 2963 cr respectively but net bought stock futures worth Rs 661 cr. DIIs were net buyers to the tune of Rs 1419 cr.

 

Rupee depreciated 2 paise to end at 74.06/$.

 

For the week, Sensex and Nifty gained 1.9% and 2% respectively, snapping 3-week losing streak.

 

For the month, Nifty and Sensex fell 0.4% and 1.5% respectively.

 

Results of assembly election showed that TMC retained power in West Bengal, BJP retained power in Assam, DMK coalition won Tamil Nadu, LDF won Kerala while BJP coalition won Puducherry.

 

GST collections in April hit a record 1.41 lk cr mark.

 

Haryana and Odisha announced strict lockdown measures while Delhi extended restrictions by a week.

 

Auto sales for April were subdued.

 

OUTLOOK

 

Markets in China and Japan are closed today for holidays. Hang Seng is down more than a percent and SGX Nifty is suggesting around 120 points lower start for our market.

 

In Friday's report we had said that 15044, the top made Thursday, would work as immediate hurdle, while 14555 was the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty, plunged all the way to 14601 before closing at 14631 and is set to open near 14500 today.

 

14446, the 67% retracement level of the recent 14151-15044 upmove, would be the next downside level to eye after today's gap-down opening.

 

14855, the top made Friday, would work as immediate hurdle.

 

Kotak Mahindra Bank will report its quarterly earnings today.