TRAIL STOP-LOSS TO 16410

 

TRAIL STOP-LOSS TO 16410

 

WORLD MARKETS

 

US indices tumbled 1%-3.2% with Nasdaq leading the losses after the latest CPI data showed inflation is still running hot.

 

April CPI jumped 8.3%, which was higher than expected and still running close to its 40-year high of 8.5%. Core CPI saw an even bigger month-over-month jump of 0.6%, beating an expected 0.4% rise.

 

US 10-year treasury yield slipped 7 bps to 2.927%. Dollar index inched up 0.1% to 104. Gold rose 0.8% to $1852 per ounce.

 

Energy prices jumped as Russian gas flows to Europe via Ukraine fell by a quarter after Kyiv halted use of a major transit route blaming interference by occupying Russian forces. Brent crude rose $5.63, or 5.5%, to $108.09 a barrel and WTI crude climbed $6.47 to $106.23.

 

European markets climbed 1.4%-2.8%. German inflation in April rose to an annual 7.4%, its highest print since 1981.

 

Ealier Chinese inflation data for April also came in higher-than-expected.

 

AT HOME

 

After plunging a percent and half, benchmark indices recouped two third of the losses in late noon rebound to end lower by half a percent and extending the losing streak to fourth straight day. Sensex settled at 54088, down 276 points while Nifty finished at 16167, down 73 points. Nifty mid-cap and small-cap indices fell 0.4% and 2.9% respectively with the latter falling for the eighth consecutive day and closing at the lowest level after 17th May, 2021. BSE Capital Goods and IT indices were the top losers among the sectoral indices, down 1.6% and 1.5% respectively whereas Realty index and Bankex were the top gainers, up 0.9% and 0.7% respectively.

 

FIIs net sold stocks and index futures worth Rs 3609 cr and 966 cr respectively but net bought stock futures worth Rs 427 cr. DIIs were net buyers to the tune of Rs 4181 cr.

 

Rupee appreciated 9 paise to end at 77.24/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of upto a percent and SGX Nifty is suggesting around 150 points lower start for our market.

 

In yesterday's report we had said that 16142, the low made Monday, was the immediate support, upon breach of which, 15900 followed by 15671 would be next downside levels to eye.

 

Nifty broke 16142 and plunged all the way to 15992 before closing at 16167. The benchmark is set to open near 16000 today.

 

15900 continues to immediate support to eye; Immediate hurdle on the hourly chart has come down to 16410, 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.

 

April CPI will come out today while key corporate earnings to eye include Tata Motors and L & T.