14800-14825 IS THE IMMEDIATE RESISTANCE ZONE; 14591 IMMEDIATE SUPPORT

 

14800-14825 IS THE IMMEDIATE RESISTANCE ZONE; 14591 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices rose 1.1%-2.3% on Friday, with Nasdaq on the top as technology shares led the upmove and reopening trades extended previous day's upmove.

 

Economic data was not upbeat. Retail sales showed no growth in April after a big jump in March and expected growth of 1%. Industrial production in April rose 0.7%, the expected figure being 0.8%. The University of Michigan’s Survey of Consumers showed that consumer confidence declined in early May as inflation expectations rose.

 

The yield on the benchmark 10-year Treasury note slipped to 1.645% while that on the 30-year Treasury bond dipped to 2.371%. The dollar index shed 0.4%. Spot gold rose 0.7% to $1,838.57 per ounce.

 

Brent as well as WTI crude rose nearly 2.5% to settle at $68.71 per barrel and $65.37 per barrel respectively.

 

European markets rose 1.1%-1.5%.

 

For the week, US indices fell 1.1%-2.3%. In Europe, FTSE fell 1.2%, CAC was flat while DAX inched up 0.1%. In Asia, Nikkei nosedived 4.3%, it's biggest loss in nine months amid a resurgence in Covid-19 cases. Hang Seng and Nifty fell 2% and 1% respectively while Shanghai gained 2.1%.

 

AT HOME

 

After a weakness of more than half a percent in the morning, recovery in noon session helped Sensex close higher by 0.1% while Nifty ended lower by 0.1%. Sensex settled at 48732, up 41 points while Nifty lost 18 points to finish at 14677. Nifty mid-cap and small-cap indices plunged 1.6% and 1.5% respectively. BSE Metal and Realty indices nosedived 3.6% and 3.3% respectively, becoming top losers among the sectoral indices while FMCG index climbed 2%, becoming top gainer, followed by 0.6% higher Capital Goods index.

 

FIIs net sold stocks and stock futures worth Rs 2608 cr and 902 cr respectively but net bought index futures worth Rs 625 cr. DIIs were net buyers to the tune of Rs 613 cr.

 

Rupee appreciated 13 paise to end at 73.29/$.

 

UPL surged after it's March quarter consolidated net profit surged 74% y-o-y on strong operating growth.  Asian Paints climbed after reporting 48% y-o-y jump in domestic decorative business volumes in the quarter.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.6% each while Nikkei is off 0.4%. SGX Nifty is suggesting around 70 points higher start for our market.

 

In Friday's report we had said that 14645 and 14620 was where 34 and 20-DMAs were placed respectively, making 14645-14620 an important support zone and that 14824, the top made Wednesday, would act as immediate hurdle.

 

Nifty, after touching a low of 14591, rebounded to end at 14677.

 

On Friday, after intraday breaching 20 and 34-DMA supports placed at 14630 and 14643 respectively, Nifty rebounded to end above them. This makes 14591, the low made on Friday, important immediate support. Below 14591, 14416, the bottom made on 3rd May, would be the next support to eye.

 

On the way up, 14800-14825 is the immediate resistance zone, above which, 14900-14930 would be the next target/resistance zone.