21710, 21530 ARE NEXT SUPPORTS; 22300-22350 IS THE RESISTANCE ZONE

 

21710, 21530 ARE NEXT SUPPORTS; 22300-22350 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

Dow inched up 0.1% while S & P 500 and Nasdaq fell 0.2% and 0.5% respectively

 

The Philadelphia Fed’s monthly business conditions index rose to 15.5 from 3.2 in March, exceeding the estimate. U.S. initial jobless claims were unchanged at a seasonally adjusted 212,000 for the week ended April 13, still higher than the forecast of 215,000. Home sales dropped 4.3% last month to a seasonally-adjusted annual rate of 4.19 million units.

 

U.S. 10-year treasury yield rose 5 bps to 4.635%. Dollar index rose 0.3% to 106.21. Gold rose 0.8% to $2378 per ounce.

 

Brent futures fell 0.2% to settle at $87.11 a barrel, while WTI crude rose 0.1% to $82.73.

 

In Europe, FTSE and DAX gained 0.4% each while CAC climbed half a percent.

 

AT HOME

 

After rising eight tenth of a percent in the morning, benchmark indices nosedived in noon to end lower by 0.6% each, extending the losing streak to fourth consecutive day. Sensex settled at 72488, down 454 points while Nifty lost 152 points to finish at 21995. Sensex and Nifty closed at their lowest level after 26th March and 20th March respectively. Nifty mid-cap and small-cap indices fell 0.5% and 0.3% respectively. Except 0.8% higher Media index, all the NSE sectoral indices ended lower, with Healthcare indices at the bottom, down 1.8%, followed by 1.1% lower Oil & Gas and FMCG indices.

 

FIIs net sold stocks, index futures and stock futures worth Rs 4260 cr, 7020 cr and 4597 cr respectively. DIIs were net buyers to the tune of Rs 2286 cr.

 

Rupee ended flat at 83.54/$.

 

Infosys quarterly earnings disappointed as revenue and margins missed estimates and the company also lowered guidance for the ongoing fiscal sharply. Bajaj Auto, helped by strong domestic sales, beat estimates on all counts and also announced Rs. 80 per share dividend.

 

OUTLOOK

 

Unconfirmed reports are suggesting that Israel has conducted missile strikes over Iran. Owing to this oil has surged nearly 3% and US futures are down 1.3%-1.8%. In Asia, Nikkei and Hang Seng are down 3% and 1% respectively while Shanghai is up 0.1%. GIFT Nifty is suggesting nearly 300 points gap-down start for our market.

 

In yesterday's report we had said that 22000-21950 continued to be immediate support area while 22500 was immediate hurdle.

 

Nifty plunged to 21961 before closing at 21995. The benchmark is set to open below 21800 today.

 

21710, the low made in March, would be the next downside level to eye after today's gap-down start. If 21710 does not hold, 21530 and 21137, the bottoms made in February and January respectively, would be next levels in line;22300-22350 is the immediate resistance zone.

 

For Banknifty, 46520, the 78.6% retracement levels of the recent upmove, is the next support, below which, 45828, the bottom made in March, would be next downside levels to eye; 48000 is the immediate hurdle.

 

Polling season officially kicks off today as voting for 102 Lok Sabha seats across 21 states and Union Territories will take place.

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