STAY SHORT WITH THE STOP-LOSS OF 18350

 

STAY SHORT WITH THE STOP-LOSS OF 18350

 

WORLD MARKETS

 

U.S. indices gained 0.3%-1.5%, with the S & P 500 and Nasdaq Composite notching their highest closing levels since August 2022, as optimism grew about timely debt ceiling deal.

 

House Speaker Kevin McCarthy said he’s optimistic congressional negotiators could reach a deal in time for a House vote next week.

 

Weekly initial jobless claims came in at 242,000, lower than the forecasts of 254,000. Philadelphia Federal Reserve’s manufacturing index improved to -10.4 in May from -31.3 in April. Markets were forecasting a contraction of -19.8.

 

Walmart rose 1.3% on the back of its strong quarterly result.

 

Dallas Fed President Lorie Logan said the latest economic data doesn’t support a pause in rate hikes yet.

 

U.S. 10-year treasury yield rose 8 bps to 3.65%. Dollar index rose 0.6% to 103.52. Gold fell 1.2% to $1958 per ounce.

 

Brent futures fell 1.2% to $75.98 a barrel while WTI crude fell 1.1% to $72.04.

 

In Europe, DAX surged 1.3% and hit 17-month high. CAC and FTSE gained 0.6% and 0.25% respectively.

 

AT HOME

 

After rising more than half a percent in the initial trade, Sensex and Nifty saw a sustained downward move through the session to end lower by 0.2% and 0.3% respectively. Sensex settled at 61431, down 128 points while Nifty lost 51 points to finish at 18130. This was the third consecutive red day for both the indices. Nifty mid-cap and small-cap indices fell 0.6% and 0.5% respectively. Nifty Realty and PSU Bank indices were the top losers among the sectoral indices, down 2.4% and 1.9% respectively. Financial Services and Private Bank indices were the top gainers, up 0.3% each.

 

FIIs net bought stocks and index futures worth Rs 970 cr and 656 cr respectively, but net sold stock futures worth Rs 1140 cr. DIIs were net sellers to the tune of Rs 850 cr.

 

Rupee depreciated 22 paise to end at 82.60/$.

 

OUTLOOK

 

Today morning, Nikkei is up 0.8% but Hang Seng and Shanghai are down 1.6% and 0.8% respectively. SGX Nifty is suggesting around 20 points higher start for our market.

 

In yesterday's report we had said that 18100-18050 continued to be next support area while 18300-18350 was the immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

Nifty, after touching a high of 18297, reversed and plunged all the way to 18104 before closing at 18130.

 

18100-18050 continues to be immediate support area, upon breach of which, 17863, the top made in mid-April, would be the next support to eye; 17300-17350 continues to be immediate resistance zone, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 43446, the low made Wednesday, is the immediate support, upon breach of which, 42800-42600 would be next support area; 44150, the top made on Monday, is the immediate hurdle.

 

JSW Steel, NTPC and Powergrid will report their quarterly earnings today.

 Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.

 

18100-18050 IS THE SUPPORT AREA; 18300-18350 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

U.S. indices climbed 0.2%-1.3% on optimism over debt ceiling deal.

 

At the conclusion of a meeting between Biden and congressional leaders, House Speaker  McCarthy said that a “better process” is now in place for further talks, saying it’s “possible to get a deal by the end of the week.” Later, Biden said that he and the other lawmakers had a “productive” meeting and that he was confident about getting the agreement on the budget.

 

Housing Starts rose 1.6% to a seasonally adjusted annual rate of 846,000 units last month. Data for March was revised down to 833,000 units from 861,000 earlier.

 

U.S. 10-year treasury yield rose 3 bps to 3.57%, rising for the fourth consecutive day. Dollar index rose quarter of a percent to 102.86, it's highest level in seven weeks. Gold fell 0.4% to $1981 per ounce.

 

Brent crude futures settled up 2.7% to $76.96 a barrel and WTI crude rose 2.8% to $72.83.

 

In Europe, FTSE and CAC fell 0.4% and 0.1% respectively but DAX rose 0.3%.

 

AT HOME

 

Benchmark indices fell six tenth of a percent each, matching yesterday's dip and extending the losing streak to second straight session. Sensex settled at 61560, down 371 points while Nifty lost 105 points to finish at 18181. Nifty mid-cap index eased 0.1% while small-cap index gained half a percent. Except 0.1% higher Auto and FMCG indices, all the NSE sectoral indices ended lower, with Media and Realty indices being the top losers, down 2.1% and 1.3% respectively.

 

FIIs net bought stocks worth Rs 149 cr but net sold index futures and stock futures worth Rs 530 cr and 1756 cr respectively. DIIs were net sellers to the tune of Rs 204 cr.

 

Rupee depreciated 17 paise to end at 82.38/$.

 

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.4%-1.3% and SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 18250-18200 was the immediate support zone on the houlry chart, upon breach of which, fall can extend to 18100-18050 area.

 

Nifty broke 18200 and plunged all the way to 18115 before closing at 18181.

 

18100-18050 continues to be next support area; 18300-18350 is the immediate resistance zone, above which, 18458, the top made on Monday, would be next hurdle. Meanwhile, trading shorts can be held on to with the stop-loss of 18350.

 

For Banknifty, 43446, the low made yesterday, is the immediate support, upon breach of which, 42800-42600 would be next support area; 43900-44000 is the immediate resistance zone.

 

SBI and ITC will report their quarterly earnings today.

 

 Investment in securities market is subject to market risk.

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18250-18200 IS THE SUPPORT ZONE; 18458 IMMEDIATE HURDLE

 

18250-18200 IS THE SUPPORT ZONE; 18458 IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.2%-1% on the back of a lackluster forecast from Home Depot and debt ceiling concerns.

 

April retail sales rose 0.4% last month, lower than the 0.8% increase anticipated buy up from a revised negative 0.7% reading of March. Industrial production jumped 1% in April, topping expectations for a flat reading and up slightly from the revised 0.8% increase in March.

 

Home Depot shares fell 2.2% after reporting disappointing quarterly revenue and cutting its full-year guidance.

 

Richmond Fed President Barkin said he was “comfortable” with raising interest rates further if needed to lower inflation. Cleveland Fed chief Mester said the U.S. central bank was not at a point yet where it can hold rates steady for a period of time.

 

U.S. 10-year treasury yield rose 3 bps to 3.54%. Dollar index rose 0.2% to 102.60. Gold plunged 1.4% to $1988 per ounce.

 

Brent crude futures dropped 26 cents to $74.97 a barrel and WTI crude eased 17 cents to $70.94.

 

European markets fell 0.1%-0.3%. U.K. jobless data showed a surprise tick higher. EU employment figures also showed a 0.6% quarterly rise.

 

Earlier, data from China showed that industrial output and retail sales growth undershot forecasts in April.

 

AT HOME

 

Sensex and Nifty fell 0.7% and 0.6% respectively for their second worst fall of the month after 5th May. Sensex settled at 61932, down 413 points while Nifty lost 112 points to finish at 18286. Nifty mid-cap index however gained 0.3% while small-cap index was little changed. Nifty Media and Auto indices were the top losers among the sectoral indices, down 1.4% and 0.9% respectively while PSU Bank and IT indices were the top gainers, up 0.7% and 0.2% respectively. 

 

FIIs net bought stocks and stock futures worth Rs 1407 cr and 83 cr respectively but net sold index futures worth Rs 347 cr. DIIs were net sellers to the tune of Rs 886 cr.

 

Rupee appreciated 9 paise to end at 82.21/$.

 

Bharti Airtel numbers missed topline estimate but margin came better-than-estimate.

 

OUTLOOK

 

Today morning, Nikkei is up 0.6% but Hang Seng and Shanghai are down half a percent each. SGX Nifty is suggesting around 35 points lower start for our market.

 

In yesterday's report we had said that 18550-18600 was the next upside zone to eye for Nifty while immediate support on the hourly chart had moved up to 18200, with the stop-loss of which, trading longs could be held on to.

 

Nifty plunged all the way to 18264 before closing at 18286.

 

18250-18200 is the immediate support zone on the houlry chart, upon breach of which, fall can extend to 18100-18050 area; 18458, the top made Monday, is the immediate hurdle.

 

For Banknifty, 44151 is the immediate hurdle, upon crossover of which, 44900 would be next upside level to eye; 43500 is the immediate support on the hourly chart, upon breach of which 42800-42600 would be next support zone.

 Investment in securities market is subject to market risk.

Please check https://www.prudentbroking.com/Disclaimert.aspx for detailed disclaimer.

18550-18600 IS THE NEXT UPSIDE TARGET AREA; TRAIL STOP-LOSS TO 18200

 

18550-18600 IS THE NEXT UPSIDE TARGET AREA; TRAIL STOP-LOSS TO 18200

 

WORLD MARKETS

 

U.S. indices gained 0.1%-0.7%, with the Dow snapping a 5-day losing streak, ahead of the resumption of debt ceiling talks.

 

President Joe Biden is scheduled to meet with congressional leaders today for face-to-face talks.

 

May Empire State Manufacturing survey plunged about 43 points from April to a reading of -31.8, below the estimate of -5.

 

U.S. 10-year treasury yield rose 4 bps to 3.508%. Dollar index fell 0.3% to 102.42. Gold rose 0.2% to $2016 per ounce.

 

Brent crude futures rose .4% to $75.23 a barrel and WTI crude settled at $71.11 a barrel, up 1.5%.

 

In Europe, FTSE rose 0.3% while DAX and CAC were little changed.  The EU’s executive arm raised its forecasts for inflation for the euro area to 5.8% this year and 2.8% in 2024, and said it expects the ECB to continue with rate hikes. But it also revised its GDP estimates higher, forecasting 1% growth this year from a previous 0.8% estimate.

 

AT HOME

 

Benchmark indices rose half a percent each and closed at the highest level after Mid-December 2022. Sensex settled at 62345, up 317 points while Nifty added 84 points to finish at 18398. Nifty mid-cap and small-cap indices gained 0.7% and 0.8% respectively. Except a flat Oil & Gas index, all the NSE sectoral indices ended higher, with Realty and Media indices being the top gainers, up 4.3% and 2.1% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1685 cr, 1290 cr and 646 cr respectively. DIIs were net buyers to the tune of Rs 191 cr.

 

Rupee depreciated 14 paise to end at 82.30/$.

 

India's wholesale inflation hit a 34-month low as it contracted 0.9% in April as against a rise of 1.34% in March.

 

India's April trade deficit came in at 21-month low of $15.24 bn Vs $18.36 bn Y-o-Y. Imports fell 14% y-o-y to $49.90 bn while exports dipped 12.7% to $34.66 bn.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.7% and 0.5% respectively while Shanghai is off quarter of a percent. SGX Nifty is suggesting around 35 points higher start for our market.

 

In yesterday's report we had said that 18447, the 78.6% retracement level of the entire 18887-16828 fall, was the next upside target while 18100 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to touch a high of 18458 before closing at 18398.

 

18550-18600 is the next upside zone to eye for Nifty; Immediate support on the hourly chart has moved up to 18200, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44900 is the next upside level to eye; 43500 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 Investment in securities market is subject to market risk.

Please click on the link below for Disclaimer https://www.prudentbroking.com/Disclaimert.aspx

18447 CONTINUES TO BE UPSIDE LEVEL TO EYE; 18100 IS IMMEDIATE SUPPORT

 

18447 CONTINUES TO BE UPSIDE LEVEL TO EYE; 18100 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow ended just below the flat line while S & P 500 and Nasdaq fell 0.2% and 0.4% respectively on Friday on concerns over the U.S. debt ceiling and disappointing economic data.

 

A preliminary reading on the University of Michigan’s consumer sentiment index fell to a six-month low of 57.7, much lower than the estimated reading of 63.0. The survey also showed the outlook for inflation over the next 5 years climbed to 3.2%, the highest clip since June 2008. Import prices rose 0.4% month over month in April, marking the first rise so far in 2023. Expected rise was 0.3% after a decline of 0.8% the prior month.

 

A debt ceiling meeting between President Joe Biden and congressional leaders that was set for Friday was postponed to next week.

 

US 10-year treasury yield rose 8 bps to 3.470%. Dollar index rose 0.6% to 102.70. Gold fell 0.2% to $2011 per ounce.

 

Brent crude futures settled down 1.1% to $74.17 while WTI crude futures fell 1.2% to $70.04.

 

European markets gained 0.3%-0.9%. U.K. GDP showed 0.1% growth in the first quarter of the year, in line with forecasts, but an unexpected 0.3% fall in March as the services sector contracted.

 

The S&P 500 and Dow fell for a second consecutive week, down 0.3% and 1.1%, respectively while the Nasdaq gained 0.4%. Dollar index rose 1.4% for its biggest weekly gain since February and hit one-month peak.

 

AT HOME

 

After falling nearly half a percent in the initial trade, benchmark indices saw a strong rebound through the session to end modestly higher. Sensex settled at 62028, up 123 points while Nifty added 18 points to finish at 18315. Nifty mid-cap and small-cap indices fell 0.4% and 0.8% respectively. Nifty Auto and Bank indices were the top gainers among the sectoral indices, up 0.8% and 0.7% respectively while Metal and Media indices were the top losers, down 1.8% and 1.1% respectively.

 

FIIs net bought stocks and stock futures worth Rs 1014 cr and 5 cr respectively but net sold index futures worth Rs 245 cr. DIIs were net sellers to the tune of Rs 922 cr.

 

Rupee depreciated 7 paise to end at 82.16/$.

 

For the week, Sensex and Nifty gained 1.6% and 1.4% respectively and registered highest weekly close after the week ended 9^th December 2022.

 

India's retail inflation, at 4.7%, hit a 18-month low in April. Industrial Production growth fell to 5-month low of 1.1% in March on poor manufacturing performance.

 

Tata Motors reported strong numbers across business with commercial vehicle margin hitting 17-quarter high. DLF too delivered strong numbers with record booking and collections.

 

Congress swept Karnataka, winning 135 seats in the 224-member Assembly. BJP has won 66 seats and the JD(S) 19.

 

OUTLOOK

 

Today morning, Nikkei is up 0.4% but Hang Seng and Shanghai are down 0.1% and 0.3% respectively. SGX Nifty is suggesting around 40 points lower start for our market.

 

In Friday's report we had said that 18447, the 78.6% retracement level of the entire 18887-16828 fall, continued to be next upside level to eye while 18100-18050 continued to be immediate support area, with the stop-loss of which, trading longs can be held on to.

 

Nifty, after touching a low of 18194, rebounded to end at 18314.

 

18447, the 78.6% retracement level of the entire 18887-16828 fall, is the next upside level target, upon crossover of which, 18887, the all-time high made in December 2022, would be next major level to eye; On the way down, immediate support on the hourly chart is placed around 18100, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44151, the all-time high made in December 2022, is the next target, above which, 44900 would be next upside level to eye; 43300 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 Investment in securities market is subject to market risk.

Please click on the link below for Disclaimer https://www.prudentbroking.com/Disclaimert.aspx

18447 CONTINUES TO BE UPSIDE LEVEL TO EYE; 18100-18050 IS THE SUPPORT AREA

 

18447 CONTINUES TO BE UPSIDE LEVEL TO EYE; 18100-18050 IS THE SUPPORT AREA

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.7% and 0.2% respectively as Disney shares were under pressure and concerns around regional banks persisted. Nasdaq meanwhile rose 0.2% as Alphabet shares gained near their highest level since August.

 

Disney shares fell more than 8% the day after the media giant released its quarterly results.  PacWest Bancorp plunged 22% after it said in a regulatory filing that deposits fell 9.5% during the week of May 5.

 

The producer price index for April rose 0.2% y-o-y, against estimate for 0.3% and after declining 0.4% in March. Excluding food and energy, core PPI also rose 0.2%. Y-o-y increase stood at 2.3%, which was the smallest rise since January 2021 and followed a 2.7% advance in March. Initial jobless claims grew by 22,000 for the week ending May 6 to 264,000, marking the highest reading since October, 2021.

 

US 10-year treasury yield fell 6 bps to 3.388%. Dollar index rose 0.6% to 102.06. Gold fell 0.7% to $2015 per ounce.

 

Brent crude fell 1.9% to $74.98 a barrel and WTI crude fell 2.3%, to $70.88.

 

FTSE and DAX fell 0.1% and 0.4% respectively but CAC rose 0.3%. The Bank of England delivered a 25 bps rate hike to 4.5% as expected, increasing rates for the 12th consecutive meeting.

 

Consumer prices in China rose 0.1% y-o-y in April, the slowest pace in two years. New Chinese bank loans tumbled far more sharply than expected in April.

 

AT HOME

 

Consolidation continued as benchmark indices ended lower by 0.1% each, marking the third consecutive day of minor changes after rangebound session. Sensex settled at 61904, down 35 points while Nifty lost 18 points to finish at 18297. Nifty mid-cap and small-cap indices however gained 0.3% and 0.5% respectively, with the former extending the winning streak to fourth straight day. Nifty Consumer Durables index was the top gainer among the sectoral indices, up 0.9%, followed by half a percent higher Realty and FMCG indices. Pharma and Healthcare indices were the top losers, down 1.3% and 1.1% respectively.

 

FIIs net bought stocks and stock futures worth Rs 837 cr and 749 cr respectively but net sold index futures worth Rs 669 cr. DIIs were net sellers to the tune of Rs 200 cr.

 

Rupee depreciated 10 paise to end at 82.09/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.8% and 0.3% respectively while Shanghai is flat. SGX Nifty is sugggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 18447, the 78.6% retracement level of the entire 18887-16828 fall, was the next upside level to eye while 18100-18050 was the support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 18390, slipped to end at 18297 and is set to open below 18250 today.

 

18447, the 78.6% retracement level of the entire 18887-16828 fall, continues to be next upside level to eye; while 18100-18050 continues to be immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43700-43800 is the immediate resistance zone, upon crossover of which, 44151, the top made in December 2022, would be next upside target; 42800-42600 is the immediate support zone. 

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18447 IS THE NEXT UPSIDE TARGET; 18100-18050 IS THE SUPPORT AREA

 

18447 IS THE NEXT UPSIDE TARGET; 18100-18050 IS THE SUPPORT AREA

 

WORLD MARKETS

 

Dow fell 0.1% but S & P 500 and Nasdaq rose 0.4% and 1% respectively following a tamer-than-expected inflation report.

 

April consumer prices rose 4.9% y-o-y, which was less than the 5% gain anticipated. Month-over-month inflation matched expectations with a 0.4% increase. However, core inflation remained sticky at 5.5%.

 

US 10-year treasury yield fell 8 bps to 3.443%. Dollar index fell quarter of a percent to 101.41. Gold too fell quarter of a percent to $2029 per ounce.

 

Brent crude dropped 1.3% to $76.41 a barrel while WTI fell 1.6% to $72.56 a barrel.

 

European markets fell 0.3%-0.5%.

 

AT HOME

 

After falling three tenth of a percent in first hour, benchmark indices reversed these losses through the session to end higher by three tenth of a percent. Sensex settled at 61940, up 179 points while Nifty added 49 points to finish at 18315. Nifty mid-cap index was little changed while small-cap index inched up 0.1%. Nifty Media and Realty indices were the top gainers among the sectoral indices, up 1.4% and 0.9% respectively whereas PSU Bank index tumbled 1.1%, becoming top loser, followed by 0.25% lower Metal index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1833 cr, 321 cr and 123 cr respectively. DIIs were net sellers to the tune of Rs 790 cr.

 

Rupee appreciated 5 paise to end at 81.99/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.2% and 0.3% respectively while Nikkei is off 0.2%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday's report we had said that 18447, the 78.6% retracement level of the entire 18887-16828 fall, continued to be next upside level to eye while 18050 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 low of 18211, rebounded to end at 18315.

 

18447, the 78.6% retracement level of the entire 18887-16828 fall, continues to be next upside level to eye; 18100-18050 is the immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43740, the top made last week, is the resistance to eye; 42582, the low made last week, is the immediate support. 

 

Asian Paints and Eicher Motors will report their quarterly earnings today.

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