19500 BELOW 19650; 19991 IS IMMEDIATE HURDLE

 

19500 BELOW 19650; 19991 IS IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 inched up a bit while Nasdaq fell 0.2% on Friday.

 

U.S. 10-year treasury yield fell 1 bps to 3.841%. Dollar index rose 0.3% to 101.01. Gold fell 0.4% to $1961 per ounce.

 

Brent crude futures rose 1.8% to $81.07 a barrel and WTI crude futures rose 1.9% to $77.07 a barrel, the highest since April 25.

 

In Europe, CAC and FTSE rose 0.6% and 0.2% respectively while DAX fell 0.2%.

 

Japan’s core inflation rose to 3.3%, matching a median market forecast but remaining ahead of the BoJ’s 2% target.

 

For the week, Dow and S & P 500 gained 2.1% and 0.7% respectively while Nasdaq fell 0.6%.

 

AT HOME

 

Sensex and Nifty tumbled 1.3% and 1.2% respectively, snapping a 6-day winning streak and suffering the worst cut after 13th March 2023. Sensex settled at 66684, down 887 points while Nifty lost 234 points to finish at 19745. Nifty mid-cap index fell 0.4% but small-cap index rose 0.7%. Nifty IT index nosedived 4.1%, becoming top loser among the sectoral indices, followed by 1.3% lower Consumer Durables index. Media and PSU Bank indices were the top gainers, up 0.5% and 0.25% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 1999 cr, 1415 cr and 356 cr respectively. DIIs were net buyers to the tune of Rs 1291 cr.

 

Rupee appreciated 4 paise to end at 81.95/$.

 

For the week, Sensex and Nifty gained 0.9% each, extending the winning streak to fourth consecutive week.

 

Reliance industries posted good set of earnings driven by retail segment which reported highest ever revenue and margin and offset weak performance from O-to-C segment. Jio reported steady quarter. ICICI Bank reported business strong. Return on Assets was at all time high while asset quality was best in 33 quarters. kotak Bank's net profit beat estimate. Deposit growth was best in 16 quarters while Return on Assets was robust. Retail loan growth however, was soft.

 

OUTLOOK

 

Today morning, Nikkei is up 1.2% but Hang Seng and Shanghai are off 1.3% and 0.2% respectively. GIFT Nifty is suggesting a marginally lower start for our market.

 

In Friday's report we had said that 20071 was the next upside target to eye while 19700-19650 was the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

Nifty fell to 19700 before closing at 19745.

 

19991, the top made last week, is the immediate hurdle, upon crossover of which, 20070 would be next upside level to eye. 19650 is the immediate support on the hourly chart, upon breach of which, 19500, around which a trendline adjoining recent bottoms on hourly chart is placed, would be next downside level to eye. Meanwhile, trading longs can be held on to with the stop-loss of 19650.

 

For Banknifty, 46500, followed by 46800 are the upside targets to eye. 45400 is the immediate support on the hourly chart, below which, 45000, around which 20-DMA is placed, would be next support to eye. Meanwhile, trading longs can be held on to with the stop-loss of 45400.

 

Tata Steel will report its quarterly earnings today.

 

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