18000 IS IMMEDIATE SUPPORT; 18267 IS IMMEDIATE HURDLE

 

18000 IS IMMEDIATE SUPPORT; 18267 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices surged 1.6%-2.2%, snapping a 4-day losing streak, as regional bank shares climbed off their lows and Apple jumped after posting better-than-expected quarterly earnings.

 

U.S. economy added 253,000 jobs in April, higher than the estimated 180,000 number. The unemployment rate came in at 3.4%, below an estimate of 3.6%. Average hourly earnings rose at an annual rate of 4.4%, above expectations for a 4.2% increase.

 

Shares of regional banks surged after JPMorgan upgraded Western Alliance, Zions Bancorp and Comerica to overweight.

 

US 10-year treasury yield rose 6 bps to 3.441%. Dollar index fell 0.2% to 101.28. Gold tumbled 1.7% to $2016 per ounce.

 

Brent crude surged 3.9% to $75.30 a barrel while WTI settled up 4.1% at $71.34 after four days of declines that sent the contract to lows last seen in late 2021.

 

European markets gained 1%-1.4%.

 

For the week, Dow fell 1.2%, S & P 500 eased 0.8% while Nasdaq inched up 0.1%. In Europe, FTSE and CAC fell 1.2% and 0.8% respectively while DAX rose quarter of a percent. In Asia, Nikkei, Hang Seng and Shanghai rose 1%, 0.8% and 0.3% respectively while Nifty was flat.

 

Brent finished the week with a decline of about 5.3%, while WTI plunged 7.1%, extending the losing streak to third week in a row.

 

AT HOME

 

Sensex and Nifty nosedived 1.1% and 1% respectively, suffering worst cut since 13th March. Sensex settled at 61054, down 695 points while Nifty lost 186 points to finish at 18069. Nifty mid-cap and small-cap indices fell 0.7% and 0.8% respectively. Nifty Bank and Financial Services indices were the top losers among the sectoral indices, down 2.3% each while Consumer Durables and Auto indices were the top gainers, up 1.1% and 0.4% respectively.

 

FIIs net bought stocks worth Rs 778 cr but net sold index futures and stock futures worth Rs 804 cr and 2126 cr respectively. DIIs were net sellers to the tune of Rs 2199 cr.

 

For the week, Sensex and Nifty ended flat.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.2% and 0.6% respectively while Nikkei is down 0.6%. SGX Nifty is suggesting around 25 points higher start for our market.

 

In Friday's report we had said that 18447, the 78.6% retracement level of the entire 18887-16828 fall, was the next big target to eye while immediate support on the hourly chart had moved up to 18040, with the stop-loss of which, trading longs could be held on to.

 

Nifty plunged to 18055 before closing at 18069.

 

18267, the top made last week, which roughly coincided with the top made in January, is the immediate hurdle, upon crossover of which, 18447, the 78.6% retracement level of the entire 18887-16828 fall, would be next upside level to eye; On the way down, 18000 is the immediate support, upon breach of which, 17850, around which 20-DMA as well as top made in mid-April is placed, would be next downside level to eye.

 

For Banknifty, 20-DMA, placed around 42350, is the next downside target, below which, 42000-41800 would be next support area; 43300 is the immediate hurdle on intraday chart, above which, 43740, the top made last week, would be bigger hurdle to eye.

 

UPL will report its quarterly earnings today.