NIFTY EXTENDS CONSOLIDATION BETWEEN 9367-9250 RANGE

NIFTY EXTENDS CONSOLIDATION BETWEEN 9367-9250 RANGE

WORLD MARKETS                             

US indices gained 0.3%-0.4% on Friday with S & P 500 and Nasdaq closing at record levels after solid jobs report. Apple too closed at record high.

The U.S. economy added 211,000 jobs in April and the unemployment rate fell to 4.4% as against expectation of 185,000 and 4.5% respectively. Average hourly wages rose 0.3%.

The benchmark 10-year note yield fell to 2.353% after a brief rise following the data release. The two-year note yield, meanwhile, rose to 1.32%.

Oil rebounded with WTI and Brent closing 1.5% higher at $46.22 and $49.10 per barrel respectively.

European markets added 0.6%-1.5%. Basic resources stocks were the best performers after copper prices recovered from a five-month low.

For the week, US indices gained 0.3%-0.9%. European markets climbed 1.3%-3.1% with CAC on the top. Asia however was more down that up with 1.3% higher Nikkei but 1.6% down Shanghai and 0.6% lower Hang Seng.

AT HOME

Benchmark indices nosedived just under a percent, registering the largest single day fall since 22nd March. Sensex tumbled 267 points to settle at 29859 while Nifty finished at 9285, down 75 points. BSE mid-cap and small-cap indices lost 1.1% and 0.8% respectively. Except a flat Consumer Durable index, all the BSE sectoral indices ended in red with Metal and Energy indices leading the losers, down 2.5% and 1.7% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 364 cr, 1088 cr and 470 cr respectively. DIIs were net buyers to the tune of Rs 298 cr.

Rupee depreciated 17 paise to end at 64.54/$.

For the week, Sensex and Nifty lost 0.2% each.

Government notified the ordinance to amend the Banking Regulation Act, empowering the Reserve Bank of India (RBI) and banks to initiate bankruptcy proceedings against chronic defaulters.

OUTLOOK

In the second and last round of the French presidential election, Macron defeated far-right candidate Marine Le Pen by securing 65.1% vote.

Nikkei is up a percent and half, other Asian markets are trading with gains of upto half a percent but Shanghai is down 0.4%. SGX Nifty is suggesting about 15 points higher start for our market.

Nifty has been in a consolidation mode over past six sessions and as we have been saying, 9367, the top made towards end of April, is the immediate hurdle, a decisive crossover of which is required for a fresh upmove. Also 9250-9225, where a gap on the daily chart as well as 20 DMA is placed, continue to be immediate support to eye.