16400-15735 CONTINUES TO BE BROAD RANGE

 

16400-15735 CONTINUES TO BE BROAD RANGE

 

WORLD MARKETS

 

US indices surged 1.6%-2.7%, with the Dow extending the winning streak to fifth straight day.

 

US first-quarter GDP declined at a 1.5% annual pace, worse than the 1.3% estimate and a writedown from the initially reported 1.4%. Weekly jobless claims totaled 218,000, an increase from the previous period and slightly higher than the 215,000 estimate.

 

US 10-year yield were flat at 2.751%. Dollar index fell 0.3% to 101.76. Gold fell 0.1% to $1850 per ounce.

 

Oil prices surged to a two-month high on signs of tight supply ahead of U.S. summer driving season. Brent futures rose 2.6% to $117.29 a barrel and WTI crude settled 3.1% higher at $114.13 per barrel.

 

European markets gained 0.7%-1.8%. British Finance Minister Rishi Sunak announced a range of measures aimed at tackling the country’s cost-of-living crisis, including a “windfall tax” on the profits of oil and gas giants and cost-of-living payments to low-income households and pensioners.

 

AT HOME

 

After falling three fourth of a percent in the morning, benchmark indices took a U-turn in the afternoon and closed with gains of 0.9% each, snapping a 3-day losing streak. Sensex settled at 54252, up 503 points while Nifty added 144 points to finish at 16170. Nifty mid-cap and small-cap indices rose 1.4% and 0.8% respectively. Except 0.1% lower FMCG index, all the BSE sectoral indices ended in green, with Metal index and Bankex on the top, up 3.4% and 2.2% respectively.

 

FIIs net sold stocks and index futures worth Rs 1598 cr and 626 cr respectively but net bought stock futures worth Rs 2020 cr. DIIs were net buyers to the tune of Rs 2906 cr.

 

Rupee depreciated 5 paise to end at 77.58/4.

 

For the May derivative series, Nifty plunged 6.2%.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.6%-2.8% with Hang Seng on the top. SGX Nifty is suggesting nearly 100 points higher start for our market.

 

In yesterday's report we had said that 16003, the low made Friday, continued to be immediate support, upon breach of which, 15735, the low made on 12th May, would be the next downside level to eye.

 

Nifty broke 16003 and plunged all the way to 15903 but rebounded sharply from there to end at 16170. The benchmark is set to open near 16250 today.

 

16400, around which Nifty has made multiple tops in past fortnight, continues to be important immediate hurdle to eye; 15735, the low made on 12th May, continues to be important immediate support.

 

34-DMA, placed around 35500, is the next upside level for Banknifty, above which, 36500-36800 would be the next target zone; 34500 is the immediate support.