STAY LONG WITH THE STOP-LOSS OF 22305

 

STAY LONG WITH THE STOP-LOSS OF 22305

 

WORLD MARKETS

 

U.S. indices gained 0.4%-2% on Friday as Big Tech names rallied on strong earnings and traders pored through fresh U.S. inflation data.

 

Alphabet jumped more than 10% on better-than-expected first-quarter earnings and recorded its best day since July 2015. Microsoft rose nearly 2% after it posted strong fiscal third-quarter results and showed an acceleration in cloud growth.

 

March’s core personal consumption expenditures price index excluding food and energy came in at 2.8% on an annualized basis, slightly above the 2.7% rate anticipated. Including food and energy, the gauge increased 2.7% from a year ago, also higher than the forecast of 2.6%. Both measures rose 0.3% month over month, in line with expectations.

 

U.S. 10-year treasury yield fell 4 bps to 4.667%. Dollar index rose half a percent to 106.09. Gold rose 0.3% to $2338 per ounce.

 

WTI crude futures rose 0.34% to settle at $83.85 a barrel while Brent futures rose 0.6% to $89.50 a barrel.

 

European markets gained 0.8%-1.6%.

 

The Bank of Japan kept its benchmark policy rate at 0%-0.1%, as expected.

 

For the week, Dow inched up 0.7% while S&P 500 and Nasdaq Composite surged 2.7% and 4.2% respectively, both notching their best week since November and snapping a 3-week and 4-week losing streak respectively. European markets gained 0.8%-3.1%. In Asia, Hang Seng soared 8.8% while other markets gained 0.8%-2.3%.

 

U.S. 10-year treasury yield rose 4 bps to 4.669%. Dollar index was little changed at 106.09. Gold fell 2.3% to $2338 per ounce.

 

U.S. crude oil rose 1.9% for the week while the global benchmark gained 1.7%.

 

AT HOME

 

Sensex and Nifty slipped 0.8% and 0.7% respectively, snapping a 5-day winning streak. Sensex settled at 73730, down 609 points while Nifty lost 150 points to finish at 22419. Nifty mid-cap and small-cap indices however gained 0.8% and 0.6% respectively, both extending the winning streak to fifth straight day and hitting fresh highs as well. Nifty Financial Services and Bank indices were the top losers among the sectoral indices, down 0.9% and 0.6% respectively whereas Consumer Durables and Media indices were the top gainers, up 1.7% and 1.2% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 3409 cr, 1972 cr and 6377 cr respectively. DIIs were net buyers to the tune of Rs 4357 cr.

 

Rupee depreciated 2 paise to end at 83.34/$.

 

For the week, Sensex and Nifty gained 0.9% and 1.2% respectively.

 

ICICI Bank's numbers beat street expectations but core operating profit lags loan growth for the second straight quarter.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.8% and 0.5% respectively while Shanghai is off 0.2%. GIFT Nifty is suggesting around 100 points higher start for our market.

 

In Friday's report we had said that 22775, the top made on 10th April, is the next upside level to eye; 22350-22300 is the immediate support zone, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a high of 22620, slipped to end at 22420 and is set to open near 22500 today.

 

22775, the record high made on 10th April, continues to be next upside target; On the way down, 22305, the low made on Thursday, around which 34-DMA is also placed, is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 49057, the top made on 10th April, is the immediate upside target, upon crossover of which, 50500 would be next major level to eye. 47737, the low made on Thursday, is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

Ultratech Cement, Trent and Tata Chemicals will report their quarterly earnings today.

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