STAY LONG WITH THE STOP-LOSS OF 15030

 

STAY LONG WITH THE STOP-LOSS OF 15030

 

WORLD MARKETS

 

Dow rose 0.4% while S & P 500 and Nasdaq fell 0.1% and 0.5% respectively on Friday as the tech sector came under pressure again amid another drop in bitcoin price.

 

Bitcoin plunged 8% on Friday after Chinese Vice Premier Liu He warned about bitcoin mining and trading behavior, saying tighter regulation is needed to protect the financial system.

 

The IHS Markit flash U.S. Manufacturing PMI jumped to an all-time high of 61.5 in May from 60.5 in April. Existing home sales in April declined month-over-month and missed expectations as U.S. housing supply remained tight.

 

Brent crude rose $1.33, or 2.04%, to settle at $66.44 per barrel, while WTI crude advanced 2.65% to settle at $63.58 per barrel.

 

Dollar index rose 0.22% to 89.993. Spot gold eased 0.1% to $1,876.42 per ounce. The yield on the benchmark 10-year Treasury note was down marginally to 1.63%.

 

In Europe, FTSE ended flat while DAX and CAC rose 0.4% and 0.7% respectively. UK's IHS Markit composite PMI hit 62.0 in May, its highest since the survey was launched in 1998 and up from 60.7 the previous month. U.K. retail sales also jumped 9.2% in April, double the average projection. Eurozone May flash composite PMI came in at 56.9 compared to April’s 53.8.

 

For the week, Dow and S&P 500 fell 0.5% and 0.4% respectively, extending the losing streak to second straight week. Nasdaq eked out a 0.3% gain. Oil fell nearly 3%. Dollar index fell 0.4%. Gold rose 1.9%, extending the winning streak to third straight week.

 

AT HOME

 

Sensex and Nifty soared 2% and 1.8% respectively, registering biggest gain since 30th March and closing at the highest level since 12 March and 3rd March respectively. Sensex settled at 50540, up 975 points while Nifty added 269 points to finish at 15175. Nifty mid-cap and small-cap indices rose 0.8% and 0.6% respectively. All the BSE sectoral indices ended in green with Bankex and Finance indices on the top, up 3.7% and 3% respectively.

 

FIIs net bought stocks and index futures worth Rs 510 cr and 1481 cr respectively but net sold stock futures worth Rs 1005 cr. DIIs were net buyers to the tune of Rs 649 cr.

 

Rupee appreciated 27 paise to end at 72.83/$.

 

For the week, Sensex and Nifty surged 3.7% and 3.4% respectively, registering biggest weekly gain since the Budget week that ended on 5th February.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are up 0.4% and 0.2% respectively while Hang Seng is off 0.3%. SGX Nifty is suggesting around 50 points lower start for our market.

 

In Friday's report we had said that 14884, the bottom made Thursday, was the immediate support while 15137, the top made Tuesday was the immediate hurdle.

 

Nifty soared to cross 15137 hurdle and touched a high of 15190 before closing at 15175.

 

15336, the top made in March, is the next upside target to eye.

 

15030 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.