11856 ABOVE 11796; 11624 CONTINUES TO BE IMMEDIATE SUPPORT

11856 ABOVE 11796; 11624 CONTINUES TO BE IMMEDIATE SUPPORT

WORLD MARKETS

US indices fell 0.6%-0.7% after the Fed Chair Powell hinted that lower rates may not be in the cards.

While Fed voted unanimously to maintain the benchmark rate in a range of 2.25% and 2.5% as expected, Fed Chairman Jerome Powell said in a news conference that recent low inflationary pressures may only be “transitory. ” That dashed speculation the central bank was entertaining the idea of a rate cut because of tame inflation.

Treasury yields rebounded on this with the 2-year yield rising from a session low of around 2.2% to trade back at 2.27%.

Apple shares rose 5% after its earnings, revenue for the previous quarter beat expectations and guidance for the next quarter came in better than expected.

Data from ADP and Moody's Analytics showed private payrolls increased by 275,000 in April, easily beating estimate of 177,000.

US crude fell 31 cents to $63.60 a barrel after U.S. crude inventories rose by 9.9 million barrels in the last week to 470.6 million, the highest since Sept. 2017. Brent fell 2 cents to $72.04.

In Europe, FTSE fell 0.4% while other major European markets were closed for the May Day public holiday.

AT HOME

After plunging more than eight tenth of a percent in the morning trade, benchmark indices recouped most of the losses in last hour surge to end just marginally lower. Sensex settled at 39031, down 35 points while Nifty lost 6 points to finish at 11748. BSE mid-cap and small-cap indices nosedived 1.2% each. BSE Telecom and Realty indices tumbled 2.2% each, becoming top losers among the sectoral indices while Metal and IT indices gained 1.4% each, becoming top gainers.

FIIs net bought stocks and stock futures worth Rs 115 cr and 165 cr respectively but net sold index futures worth Rs 1479 cr. DIIs were net buyers to the tune of Rs 730 cr.

Rupee appreciated 45 paise to end at 69.56/$.

GST collections hit an all-time-high of Rs 1,13,865 in April.

Eicher Motor reported 17% fall in motorcycle sales at 62879 units. Maruti sales fell 17% to 1.43 lakh units, marking the lowest figure since December 2018.

OUTLOOK

Markets in China and Japan are closed today for holidays. Hang Seng is trading lower by 0.2% and SGX Nifty is suggesting a marginally higher start, when compared to Tuesday's close of Nifty future.

In Tuesday's report, we had said that 11796-11624 range made on last Thursday are the immediate resistance-support levels to eye and had advised holding on to long positions with the stop-loss of 11624.

Nifty, on Tuesday, after touching a low of 11656 in the morning trade, surged to end at 11748.

11796 continues to be immediate hurdle to eye, upon crossover of which, 11856, the top made on 18th April, would be the next target to eye.

11624 continues to be immediate support, with the stop-loss of which, existing longs should be held on to.