TRAIL STOP-LOSS TO 15280

 

TRAIL STOP-LOSS TO 15280

 

WORLD MARKETS

 

US indices gained 0.1%-0.2% on Friday.

 

The core personal consumption expenditures index, a key inflation indicator, rose 3.1% in April, faster than expectations of a 2.9% increase. The savings rate remained elevated at 14.9%, while consumer spending rose 0.5%, in line with estimates.

 

The White House unveiled a $6 trillion budget proposal that would ramp up spending on infrastructure, education and combating climate change.

 

Brent crude rose 25 cents to $69.12 a barrel while WTI rose 34 cents to $66.55 a barrel.

 

The yield on the benchmark 10-year Treasury note dropped 2.9 basis points to 1.581%. Dollar index erased intraday gain of 0.4% to end flat at 89.99. Spot gold rose 0.3% to $1,902.27 per ounce

 

In Europe, FTSE ended flat while DAX and CAC gained 0.75% each. Euro zone economic sentiment index climbed to 114.5 in May from 110.5 in April, beating expected reading of 112.1 and notching a three-year high. The French economy contracted by 0.1% in the first quarter to slide into a technical recession. Meanwhile, British Prime Minister Boris Johnson has warned that the full lifting of England’s coronavirus restrictions on June 21 may be delayed as cases in the country of the Covid variant first detected in India doubled over the previous week.

 

For the week, Dow and the S&P 500 advanced 0.9% and 1.2% respectively, breaking a two-week losing streak. The Nasdaq rose 2.1% to post its best weekly performance since April 9. In Europe, FTSE inched up 0.1% while DAX and CAC gained 0.5% and 1.5% respectively. Asian markets gained between 1.7%-3.3% with Shanghai on the top. Gold gained 1.1%, extending the winning streak to fourth consecutive week.

 

For the month of May, Dow and the S&P 500 gained 1.9% and 0.6% respectively, posting their fourth up month in a row. Nasdaq however suffered a 1.5% loss this month for its first negative month in seven.

 

AT HOME

 

Benchmark indices gained six tenth of a percent each, with Nifty hitting record intraday as well as closing high while Sensex closed at the highest level after 3rd March. Sensex added 307 points to settle at 51422 while Nifty finished at 15435, up 98 points. Nifty mid-cap and small-cap indices however fell 0.04% and 0.7% respectively. BSE Energy index soared 4.4%, becoming top gainer among the sectoral indices, followed by 1.2% higher Oil & Gas index. Healthcare and Power indices were the top losers, down 1.1% each.

 

FIIs net bought stocks and index futures worth Rs 914 cr and 438 cr respectively but net sold stock futures worth Rs 975 cr. DIIs were net buyers to the tune of Rs 1275 cr.

 

Rupee appreciated 15 paise to end at 72.44/$.

 

For the week, Sensex and Nifty gained 1.7% each, extending the winning streak to second consecutive week.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.3%-0.7% and SGX Nifty is suggesting around 30 points lower start for our market.

 

Readers would recall that we had turned our view on Nifty bullish after 14825 hurdle was taken out and have been advising holding on to long positions with a trailing stop-loss.

 

In Friday's report we had said that 15431, the top made in February, continued to be the next upside target and had advised trailing stop-loss in long positions to 15240.

 

Nifty touched a high of 15470 before closing at 15435, achieving above mentioned target and vindicating our view.

 

15670 is the next upside target to eye.

 

Immediate support on the hourly chart has moved up to 15280, with the stop-loss of which, trading longs can be held on to.

 

India's Q4 Fy21 GDP data will be released today and is expected to show a growth of nearly 1%. FY21 GDP is expected to contract nearly 7.5%.

 

Markets in the U.S. are closed today for a holiday.