14850 ABOVE 14750; 14416 CONTINUES TO BE IMMEDIATE SUPPORT

 

14850 ABOVE 14750; 14416 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow and S & P 500 rose 0.3% and 0.1% respectively while Nasdaq fell 0.4%.  Dow closed at a record high while for Nasdaq, it was the fourth consecutive down day as Netflix, Amazon and Facebook were among the tech names that declined more than 1% each.

 

Data from ADP showed private payrolls rose 742,000 in April, up from March’s upwardly revised 565,000 but lower than the 800,000 forecast.

 

Brent crude eased 5 cents to $68.83 a barrel while WTI crude settled 6 cents, or 0.1%, lower at $65.63 per barrel.

 

U.S. Treasury yields held steady. The dollar index eased 0.1%. Spot gold rose 0.25% to $1,782 per ounce.

 

European markets climbed 1.4%-2.1%. Eurozone IHS Markit final composite PMI for April came in at 53.8 compared 53.2 in March. Euro zone producer prices rose 1.1% month-on-month in March, in line with expectations.

 

AT HOME

 

Benchmark indices rose nearly nine tenth of a percent, recouping most of yesterday's losses. Sensex settled at 48677, up 424 points while Nifty added 121 points to finish at 14617. Nifty mid-cap and small-cap indices rose 1% and 0.4% respectively. Except 1.2% lower Realty index, all the BSE sectoral indices ended in green, with Healthcare index leading the tally, up 3.1%, followed by 1.7% higher Bankex.

 

FIIs net sold stocks worth Rs 1110 cr but net bought index futures and stock futures worth Rs 10 cr and 722 cr respectively. DIIs were net sellers to the tune of Rs 241 cr.

 

Rupee depreciated 6 paise to end at 73.91/$.

 

RBI unveiled a host of measures to boost fund flow to the healthcare sector and ease the pain of small borrowers and units. The RBI has opened an on-tap liquidity window of Rs 50,000 crore with tenors of up to three years at the repo rate – four per cent — till March 31, 2022 to boost provision of immediate liquidity for ramping up Covid-related healthcare infrastructure and services in the country. Also, the RBI has decided to conduct special three-year long-term repo operations (SLTRO) of Rs 10,000 crore at repo rate for small finance banks, to be deployed for fresh lending of up to Rs. 10 lakh per borrower. SFBs will be permitted to reckon fresh lending to smaller MFIs (with asset size of up to Rs 500 crore) for on-lending to individual borrowers as priority sector lending.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.3%-2% and SGX Nifty is suggesting around 70 points higher start for our market.

 

In yesterday's report we had said that, 14750 continued to be immediate hurdle on the hourly chart while 14416, the bottom made Monday, continued to be immediate support.

 

Nifty touched a high of 14638 and closed at 14617. The benchmark is set to open near 14700 today.

 

14750 continues to be immediate hurdle on the hourly chart, upon crossover of which, 14850-14875 would be next target zone.

 

14416, the bottom made Monday, continues to be immediate support.

 

Hero MotoCorp will declare its quarterly earnings today.