NIFTY BREAKS 7770 SUPPORT; STAY SHORT WITH STOP LOSS OF 7835

NIFTY BREAKS 7770 SUPPORT; STAY SHORT WITH STOP LOSS OF 7835

WORLD MARKETS                             

US indices gained 0.4%-1.2% with tech stocks leading.

Existing home sales increased 1.7% in April to an annual rate of 5.45 million units.

Nymex oil fell 41 cents or 0.85% to $47.75 a barrel. Dollar index ended marginally higher at 95.33. Gold fell $2 to $1253 an ounce, its lowest since April 27.

European markets climbed 1.1%-1.7%

For the week, Dow fell 0.2% for its first four-week losing streak since the one ended October 2014. S & P 500 and Nasdaq however gained 0.3% and 1.1% respectively. In Europe, FTSE and CAC gained 0.3% and 0.8% respectively while DAX lost 0.4%. In Asia, Shanghai Composite lost 0.1% for its first five-week losing streak since 2012. Hang Seng rose 0.7%, snapping a three-week losing streak. Nikkei climbed 2%. US oil gained more than 3%. Dollar index gained about 0.8% for its first three-week win streak since March 2015. Gold fell little less than 2%, posting second-straight week of decline.

AT HOME

Benchmark indices fell four tenth of a percent, extending the losing streak to third straight day and closing at the lowest level since 6th May. Sensex lost 98 points to settle at 25302 while Nifty finished at 7750, down 34 points. BSE mid-cap and small-cap indices lost 0.5% and 0.8% respectively. Except a 0.2% higher FMCG index, all the BSE sectoral indices ended in red with Realty and Healthcare indices leading the tally, down 1.4% each.

FIIs net sold stocks and index futures worth Rs 744 cr and 45 cr respectively but net bought stock futures worth Rs 140 cr. DIIs were net buyers to the tune of Rs 597 cr.

Rupee depreciated 8 paise to end at 67.44/$.

For the week, Sensex and Nifty lost 0.7% and 0.8% respectively.

Lupin nosedived despite a strong quarterly earnings report on concerns about future prospects of the company following recent FDA observations on Goa and Mandideep plants.

ITC reported 5.7% rise in Jan-March quarter net profit at Rs 2495 cr while revenue jumped 9.4% to Rs 10169 cr. EBIDTA grew 13.7% to Rs 3687 cr while margin was at 36.3% vs 34.9% y-o-y. The company also announced 1:2 bonus.

OUTLOOK

Data released today morning showed Japanese exports were down 10.1% on-year in April, reflecting sluggish demand from China, the emerging markets and the U.S.  Imports for April were down 23.3%t on-year. The trade balance was 823.47 billion yen.

Today morning, Nikkei is down more than a percent but other Asian markets are trading with modest gains and SGX Nifty is suggesting about 10 points higher start for our market.

Nifty on Friday fell 34 points to close at 7750, closing below 34-DMA support for second consecutive day and breaking the 7780-7770 support area on closing basis. Next support on the way down comes around 7680, where the bottom made in early May is placed.

Immediate resistance on the hourly chart is placed at 7835, with the stop loss of which trading shorts can be held on to.

Tata Power will report its quarterly results today.