STAY LONG WITH THE STOP-LOSS OF 17650

 

STAY LONG WITH THE STOP-LOSS OF 17650

 

WORLD MARKETS

 

US indices nosedived 1%-2% as First Republic Bank reignited banking crisis fears.

 

Shares of First Republic Bank nosedived 49% after the regional bank posted its latest quarterly results, saying that deposits dropped 40% to $104.5 billion in the first quarter but have since stabilized.  UPS tumbled 10% after the company missed expectations and management said sales volumes were — and should continue to be — under pressure. PepsiCo, on the other hand, rose 2.3% on better-than-expected numbers.

 

The Conference Board said its consumer confidence index fell to 101.3 — the lowest since July 2022 - from a revised 104.0 in March. Richmond Fed manufacturing index slid as well, down at -10 in April, the fourth straight month of contraction. On the flip side, New home sales beat estimates with a 9.6% rise in March to a one-year high of 683,000 after net revisions.

 

US 10-year treasury yield fell 9 bps to 3.403%. Dollar index rose half a percent to 101.84. Gold rose  0.4% to $1997 per ounce.

 

Brent crude fell by 2.4% to $80.77 a barrel and WTI crude dropped 2.2% to settle at $77.07.

 

In Europe, FTSE and CAC fell 0.3% and 0.6% respectively while DAX ended marginally in the green.

 

AT HOME

 

Benchmark indices ended marginally higher, extending yesterday's climb. Sensex settled at 60130, up 75 points while Nifty added 25 points to finish at 17769. Nifty mid-cap index fell 0.1% but small-cap index rose half a percent. Nifty PSU Bank and Oil & Gas indices were the top gainers among the sectoral indices, up 1.3% and 0.7% respectively whereas Consumer Durables and Media indices were the top losers, down 1.2% and 0.7% respectively.

 

FIIs net sold stocks worth Rs 407 cr but net bought index futures and stock futures worth Rs 527 cr and 1705 cr respectively. DIIs were net buyers to the tune of Rs 564 cr.

 

Rupee ended flat at 81.91/$.

 

Bajaj Auto Q4 numbers beat estimates on top line, bottom line as well as margin front. Net profit fell 2.5% y-o-y to Rs 1433 cr while margin stood at 19.3%. Nestle India beat estimate on revenue and net profit front while margin, at 22.7%, missed estimate. Tata Consumer reported strong numbers with profit rising 21% while revenue grew 14%.

 

OUTLOOK

 

Today morning, Hang Seng is flat while Nikkei and Shanghai are down 0.4% and 0.2% respectively. SGX Nifty is suggesting around 20 points lower start for our market.

 

In yesterday's report we had said that 17863, the top made last week, was the next upside target while 17630 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 17807, closed at 17769.

 

17863, the top made last week, continues to be next upside target, upon crossover of which, 18135, the top made in February, would be next level to eye; 17650 is the immediate support on hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 42966, the 78.6% retracement level of the entire 44151-38613 fall seen since December 2022, continues to be next upside level to eye; 42300 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Maruti Suzuki, Bajaj Finance, HDFC Life and SBI Life will report their quarterly earnings today.