15900 BELOW 16142; 16850 IS IMMEDIATE HURDLE

 

15900 BELOW 16142; 16850 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow fell 0.3%, extending the losing streak to fourth consecutive day, but S & P 500 and Nasdaq gained 0.25% and 1% respectively to snap 3-day losing streak.

 

US 10-year treasury yield fell 4 bps to 2.997%. Dollar index inched up 0.2% to 103.92. Gold slipped 0.9% to $1837 per ounce.

 

Oil extended Monday's decline. WTI crude fell $3.33, or 3.2%, to $100.11 a barrel, while Brent crude was down $3.48, or 3.28%, at $102.46 a barrel.

 

European markets gained 0.4%-1.2%. Germany’s ZEW institute survey showed economic expectations at -34.3 for May, up from April’s -41.0 and well ahead of forecasts for a -44.5 reading.

 

U.S. April consumer price index is set to be released today, and is expected to come in at 8.1%, slightly below March’s 8.5%.

 

AT HOME

 

After rising more than half a percent in the first half, Sensex and Nifty gave away all the gains and some more in second half to end lower by 0.2% and 0.4% respectively. Sensex settled at 54364, down 105 points while Nifty lost 61 points to finish at 16240. This was the fifth red day in last six for both the indices. Nifty mid-cap and small-cap indices tumbled 1.9% and 2.2% respectively with the latter closing at the lowest level after 21st May 2021. BSE Metal and Utilities indices nosedived 5.6% and 4.6% respectively, becoming top losers among the sectoral indices, while Bankex was the top gainer, up 0.6%, followed by 0.3% each higher Finance and FMCG indices.

 

FIIs net sold stocks and stock futures worth Rs 3961 cr and 380 cr respectively but net bought index futures worth Rs 345 cr. DIIs were net buyers to the tune of Rs 2958 cr.

 

Rupee appreciated 13 paise to end at 77.33/$.

 

OUTLOOK

 

Today morning, Nikkei is little changed while Hang Seng and Shanghai are up 0.4% and 0.7% respectively. SGX Nifty is suggesting around 80 points lower start for our market.

 

In yesterday's report we had said that 16142, the low made Monday, was the immediate support while 16850 was the immediate hurdle, with the stop-loss of which, trading shorts could be held on to.

 

Nifty, after touching a high of 16404, slipped to end at 16240 and is set to open near 16150 today.

 

16142, the low made Monday, is the immediate support, upon breach of which, 15900 followed by 15671 would be next downside levels to eye; 16850 is the immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 33570, the 78.6% retracement level of the 32155-38765 upmove, is the next downside level to eye; 35600 is immediate hurdle.