NIFTY NEARLY ACHIEVES 9530 TARGET; TRAIL STOP-LOSS TO 9175

NIFTY NEARLY ACHIEVES 9530 TARGET; TRAIL STOP-LOSS TO 9175

WORLD MARKETS

US indices, after rising nearly a percent, slipped sharply in late trade to end with cuts of 0.2%-0.6%. The dip happened after President Trump said he would be giving a news conference Friday regarding China.

Initial upmove happend after latest unemployment data indicated that the worst of the economic damage from the coronavirus pandemic may be over. While 2.1 million Americans filed for unemployment benefits last week which was slightly higher than estimates, continuing claims, which represent a better unemployment picture, plunged by nearly 4 million in their first decline since the coronavirus outbreak.

Trump’s announcement came after China approved a national security bill for Hong Kong. The bill will bypass Hong Kong’s legislature, which allows additional freedoms mainland China does not have.

Brent futures rose 55 cents, or 1.6%, to settle at $35.29 a barrel while WTI crude rose 90 cents, or 2.7%, to $33.17 per barrel.

Main European markets gained 1.1%-1.8%.

Data today morning showed Japan’s retail sales fell 13.7% year-on-year in April.

AT HOME

Benchmark indices climbed 1.9% each, extending yesterday's mammoth upmove and closing at the highest level since 30th April, marking a 1-month high. Sensex settled at 32200, up 595 points while Nifty added 175 points to finish at 9490. BSE mid-cap and small-cap indices gained 1.3% and 1.4% respectively. All the BSE sectoral indices ended in green with Capital Goods index leading the tally, up 5.1%, followed by 3.5% higher Auto and Industrials indices.

FIIs net bought stocks and stock futures worth Rs 2354 cr and 2123 cr respectively but net sold index futures worth Rs 354 cr. DIIs were net buyers to the tune of Rs 145 cr.

Rupee depreciated 3 paise to end at 75.7450/$.

For the May derivative series, Nifty fell 3.8%.

OUTLOOK

Today morning, Asian markets are trading with cuts of upto 0.6% and SGX Nifty is suggesting around 25 points lower start for our market.

In yesterday's report we had said that Nifty had broken out of a trendline resistance adjoining recent tops on daily chart and had also crossed 20 as well as 34-DMAs. We had also said that 9475, followed by 9530, which are 61.8% and 67% retracement levels of entire 9889-8806 fall, would be the upside targets to eye.

Nifty soared to touch a high of 9511 before closing at 9490, achieving 9475 target and moving close to second target of 9530. The benchmark is set to open near 9450 today.

9530, the 67% retracement levels of entire 9889-8806 fall continues to be upside hurdle, upon crossover of which, 9584, the top made on 13^th May, would be the next target/resistance. Immediate support on the hourly chart has moved up to 9175, with the stop-loss of which, trading longs can be held on to.

Q4 FY20 GDP data will be released today evening and is expected to show a growth of 2.2% vs 4.7% QoQ and 5.7% YoY.  For FY20, GDP growth is likely to have slowed down to 4.4% from 6.1% last year, marking the slowest growth in 20 years.

9475, 9530 ARE UPSIDE TARGETS; 9090 IMMEDIATE SUPPORT

9475, 9530 ARE UPSIDE TARGETS; 9090 IMMEDIATE SUPPORT

WORLD MARKETS

US indices climbed 0.8%-2.2% as optimism over the reopening of economies buoyed market sentiment. S&P 500 closed above 3000 while Dow finished north of 25,000, both scaling their highest close since March.

Meanwhile, US-China tensions continued to be in focus. U.S. Secretary of State Mike Pompeo told Congress that Hong Kong was no longer autonomous from China, raising questions over the special administrative region’s favorable trade relationship with the U.S. as well as opening up the possibility of sanctions on Chinese officials. Also, the House of Representatives passed legislation condemning China for the detention and torture of Uighur Muslims in the country’s western region of Xinjiang.

Brent crude fell $1.43, or 4%, to settle at $34.74 a barrel, while WTI crude settled $1.54, or 4.5%, lower at $32.81 per barrel as tensions between US-China escalated and as dobts were raised about Russia’s commitment to deep production cuts.

Main European markets rose 1.3%-1.8%. The European Commission unveiled plan for a 750 billion euro ($826.5 billion) recovery fund, as the region faces its worst economic crisis since the 1930s.

AT HOME

Sensex and Nifty soared 3.2% each, registering biggest gain since 17 April and 30th April respectively and closing at the highest level since 13th May. Sensex settled at 31605, up 996 points while Nifty added 285 points to finish at 9314. BSE mid-cap and small-cap indices however underperformed, rising just 0.5% and 0.3% respectively. Except 0.8% lower Healthcare index, all the BSE sectoral indices ended in green with Bankex leading the tally, up 7.3%, followed by 5.6% higher Finance index.

FIIs net sold stocks worth Rs 335 cr but net bought index futures and stock futures worth Rs 1664 cr and 912 cr respectively. DIIs were net buyers to the tune of Rs 2409 cr.

Rupee depreciated 5 paise to end at 75.71/$.

OUTLOOK

Today morning, Nikkei and Shanghai are up 2% and 0.8% respectively while Hang Seng is little changed. SGX Nifty is suggesting about 60 points higher start for our market.

In yesterday's report we had reiterated the view that 9178, the top made last week, continued to be immediate resistance, a crossover of which was required for a fresh upmove. We had also mentioned in our earlier reports that once 9178 is taken out, 9281-9351, the gap created by gap-down opening on 14th May, would be the next target/resistance zone to eye.

Nifty yesterday crossed 9178 hurdle and surged all the way to 9334 before closing at 9314, vindicating our view.

With yesteray's surge, Nifty has broken out of a trendline resistance adjoining recent tops on daily chart and has also crossed 20 as well as 34-DMAs. 9475, followed by 9530, which are 61.8% and 67% retracement levels of entire 9889-8806 fall, are the upside targets to eye.

9090 is the immediate support on the hourly chart, with the stop-loss of which, trading longs should be held on to.

9178-8968 CONTINUES TO BE IMMEDIATE RANGE

9178-8968 CONTINUES TO BE IMMEDIATE RANGE

WORLD MARKETS

Dow and S & P 500 rose 2.2% and 1.2% respectively while Nasdaq inched up 0.2%. All three indices however ended off the day high, weighing the potential impact of rising tensions between Washington and Beijing against economies reopening, as coronavirus containment measures are eased.

Last hour dip happened on media reports that the Trump Administration is weighing sanctions on Chinese firms and officials over the situation in Hong Kong. Trump said he would make an announcement about the administration’s response to China’s actions by the end of this week.

Sales of new U.S. single-family homes increased by 623,000 last month, beating estimates of 490,000. Data from the Conference Board showed Consumer confidence jumped to 86.6 this month from 85.7 in April.

Brent crude gained 64 cents, or 1.8%, to settle at $36.17 per barrel while WTI rose $1.10, or 3.3%, to $34.35 per barrel.

European markets gained 1%-1.5%.

Rating agency Fitch forecasted world GDP to contract by 4.6% in 2020 compared to a decline of 3.9% predicted in late April.

AT HOME

After rising more than a percent at the open, benchmark indices gave away all the gains through the session to end marginally lower. Sensex settled at 30609, down 63 points while Nifty lost 10 points to finish at 9029. BSE mid-cap and small-cap indices however gained 1.2% and 0.6% respectively. BSE Telecom index tumbled 4.6%, becoming top loser among the sectoral indices, followed by 2.6% lower Teck index. Metal and Consumer Durables indices were the top gainers, up 2.8% and 2.6% respectively.

FIIs net bought stocks and index futures worth Rs 4716 cr and 189 cr respectively but net sold stock futures worth Rs 1413 cr. DIIs were net buyers to the tune of Rs 2841 cr.

Rupee appreciated 29 paise to end at 75.66/$.

Rating agency Fitch forecasted India GDP to contract by 5% in FY21 compared to earlier prediction of 0.8% growth.

OUTLOOK

Today morning, Nikkei is up half a percent while Hang Seng and Shanghai are modestly lower. SGX Nifty is suggesting around 30 points higher start for our market.

In yesterday's report we had said that 9178, the top made last week, continues to be immediate resistance, a crossover of which is required for a fresh upmove. We had also said that 8968, the bottom made on Friday, was the immediate support.

Nifty, after touching a high of 9161 in the initial trade, slipped to 8996 before closing at 9029 and is set to open near 9050 today.

8968, the bottom made on Friday, continues to be immediate support, upon breach of which, 8860 and 8806, the bottoms made on 19th and 18th May respectively, would be subsequent downside targets.

9178, the top made last week, continues to be immediate resistance, a crossover of which is required for a fresh upmove.

Sun Pharma and Dabur will report their quarterly earnings today.

9178-8968 IS THE IMMEDIATE RANGE

9178-8968 IS THE IMMEDIATE RANGE

WORLD MARKETS

U.S. markets were closed yesterday in observance of Memorial Day. On Friday, Dow ended flat while S & P 500 and Nasdaq rose 0.2% and 0.4%.

American biotech firm Novavax yesterday said it started the first human study of its experimental coronavirus vaccine.

Japan’s Prime Minister Shinzo Abe announced that the state of emergency will be lifted in the last five of the country’s 47 prefactures.

Brent crude eased 19 cents, or 0.5%, to $34.94 a barrel while U.S. oil fell 6 cents to $33.19.

In Europe, FTSE was closed while DAX and CAC climbed 2.9% and 2.2% respectively as countries gradually continue to reopen their economies and lift coronavirus lockdown restrictions.

On Sunday, White House National Security Advisor Robert O’Brien said that the U.S. will likely impose sanctions on China if Beijing implements national security law that would give it greater control over autonomous Hong Kong.

For the week, Dow gained 3.3% to post its best weekly performance since April 9. The S&P 500 and Nasdaq also rose more than 3%.

AT HOME

After rising about half a percent in first hour, Sensex and Nifty slipped sharply post RBI announcement to end with cuts of 0.8% and 0.6% respectively, breaking 3-day winning streak. Sensex settled at 30672, down 260 points while Nifty lost 56 points to finish at 9050. BSE mid-cap and small-cap indices fell 0.8% and 0.2% respectively. BSE Finance index and Bankex tumbled 3% and 2.4% respectively, becoming top losers among the sectoral indices while IT and Teck indices were the top gainers, up 1.7% and 1.4% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 1354 cr, 671 cr and 345 cr respectively. DIIs were net sellers to the tune of Rs 344 cr.

Rupee depreciated 34 paise to end at 75.95/$.

RBI cut repo and reverse repo rate by 40 bps each to 4% and 3.35% respectively. It now expects FY21 GDP growth to slip in negative territory. The apex bank also announced extension of moratorium on loan EMIs by 3 months and said that deferment of working capital during 6 months will be converted into term loan, which can be repaid by March 2021.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.7%-2% and SGX Nifty is trading around 9157, suggesting around 130 points higher start when compared to Friday's close of Nifty futures.

In Friday's report we had said that 9178, the top made Thursday, was the immediate hurdle, a crossover of which would confirm a "Buy" on the hourly chart and would pave the way for further upmove. We had also said tht 8950, where a trendline adjoining recent bottoms on hourly chart was placed, was an immediate support.

Nifty, after touching a high of 9150, plunged to 8968 before closing at 9039 and is set to open near 9150 today. 9178, the top made last week, continues to be immediate resistance, a crossover of which is required for a fresh upmove. If that happens, 9281-9351, the gap created by gap-down opening on 14th May, would be the next target/resistance zone to eye.

8968, the bottom made on Friday, is the immediate support.

ALL EYES ON RBI

ALL EYES ON RBI

WORLD MARKETS

US indices fell 0.4%-1% following a decline in some major tech stocks, along with dismal employment data and rising tensions with China.

US Secretary of State Mike Pompeo on Wednesday again criticized Beijing's handling of the outbreak and a Chinese official said the country will not flinch from any escalation in tensions.

Weekly jobless claims rose by another 2.4 million last week, bringing the total number of filings during the pandemic to more than 38 million.

Brent crude rose 31 cents, or 0.9%, to settle at $36.06 per barrel, while WTI gained 43 cents, or 1.3%, to $33.92 per barrel, both hitting their highest level since March.

European markets fell 0.7%-1.4%. Eurozone composite PMI came in considerably better-than-expected at 30.5 compared to April’s all-time low of 13.6. U.K. composite PMI came in at 28.9 versus April’s 13.8.

AT HOME

After rising more than a percent, benchmark indices saw a steep fall in late noon trade to end higher by just four tenth of a percent. Nevertheless, this was the third straight day of gains for both the main indices. Sensex settled at 30932, up 114 points while Nifty added 40 points to finish at 9106. BSE mid-cap and small-cap indices gained 0.8% and 0.7% respectively. BSE Auto and Consumer Discretionary Goods & Services indices climbed 2.4% and 2.1% respectively, becoming top gainers among the sectoral indices while Power and Capital Goods indices were the top losers, down 1.2% and 1% respectively.

FIIs net sold stocks and index futures worth Rs 259 cr and 471 cr respectively but net bought stock futures worth Rs 490 cr. DIIs were net buyers to the tune of Rs 402 cr.

Rupee appreciated 19 paise to end at at 75.60/$.

Bajaj Finserve reported 77% y-o-y fall in net profit at Rs 194.4 cr on account of Rs 900 cr Covid provision. Revenue rose 2.3% to Rs 13295 cr

Colgate's net profit came in slightly higher-than-expected but topline and operational performances missed estimates. Revenue fell 7.2% y-o-y to Rs 1070 cr, EBITDA was down 15.5% at Rs 262 cr, margin fell 240 bps to 24.5% while profit rose 3.3% to Rs 204 cr.

OUTLOOK

Today morning, Hang Seng is down 3% after China's parliament said it will introduce a proposal for a national security law in Hong Kong. Nikkei and Shanghai are down 0.2% and 0.6% respectively. SGX Nifty is suggesting about 30 points lower start for our market.

In yesterday's report we had reiterated the view that 9158, the top made on Monday, continued to be immediate hurdle, a crossover of which was required for a fresh upmove.

Nifty, after touching a high of 9178, slipped to end at 9100 and is set to open modestly lower today.

9178, the top made yesterday, is now the immediate hurdle, a crossover of which would confirm a "Buy" on the hourly chart and would pave the way for further upmove. 9281-9351, the gap created by gap-down opening on 14th May, would be the next target/resistance zone to eye if that happens.

8950 is where a trendline adjoining recent bottoms on hourly chart is placed, making it an immediate support. If 8950 gives way, 8806, the bottom made on Monday, would be the next support.

UPL will announce its quarterly results today.

RBI governor will hold a briefing at 10 am today and market is expecting announcements related to TLTRO (reduction in Repo and Reverse Repo rates) and Banking sector rules (NPA reclassification/extension of moratorium by 3-months).

9158 CONTINUES TO BE IMMEDIATE HURDLE; 8806 IMMEDIATE SUPPORT

9158 CONTINUES TO BE IMMEDIATE HURDLE; 8806 IMMEDIATE SUPPORT

WORLD MARKETS

US indices gained 1.5%-2.1%, boosted by strong retail earnings, record highs in Amazon and Facebook and gradual reopening of states. S&P 500 closed at its highest level since March 6.

Lowe’s and Target reported strong earnings and jump in same-store sales in the first quarter thanks to heightened demand amid the pandemic. Facebook and Amazon both hit new all-time highs, rising 6.4% and 2%, respectively.

Stocks however fell from their session highs after the Senate passed legislation that could prevent some Chinese companies from listing their shares on US exchanges unless they follow starndard for US audits and regulations.

WTI crude gained $1.5, or 4.8%, to settle at $33.49 per barrel while Brent rose $1.1, or 3.2%, to $35.75 per barrel. Data from the U.S. Energy Information Administration showed that for the week ending May 15, inventory dropped by 5 million barrels.

European markets rose 0.9%-1.3%. Euro zone April inflation was revised down to 0.3% from an initial estimate of 0.4%, bringing annual inflation to its lowest level since August 2016.

AT HOME

After trading in a narrow range for better part of the day, benchmark indices spiked up in late noon trade to end with gains of 2.1%, extending the rising streak to second straight day. Sensex surged 622 points to settle at 90818 while Nifty finished at 9066, up 187 points. BSE mid-cap and small-cap indices gained 1.5% and 1.1% respectively. Except 1.6% lower Telecom index, all the BSE sectoral indices ended in green with Healthcare and Capital Goods indices leading the tally, up 3.2% and 3.1% respectively.

FIIs net sold stocks worth Rs 1467 cr but net bought index futures and stock futures worth Rs 216 cr and 156 cr respectively. DIIs were net buyers to the tune of Rs 2373 cr.

Rupee depreciated 16 paise to end at 75.79/$.

Bajaj Auto results beat expectations on all the counts. Revenue fell 8.2% y-o-y to Rs 6816 cr, EBITDA was up 2% at Rs 1253 cr, margin improved 190 bps to 18.4% and net profit inched up 0.4% to Rs 1310 cr.

Ultratech earnings too beat estimates. Net profit rose to Rs 3239 cr (which included tax credit of Rs 2024 cr) from Rs 850 cr. Revenue fell 13% to Rs 10746 cr, EBITDA was down 3.9% at Rs 2443 cr and margin improved 220 bps to 22.7%. Consolidated sales volume fell 16% to 21.44 mt.

OUTLOOK

Today morning, Asian markets are trading with modest gains while SGX Nifty is suggesting around 20 poitns lower start for our market.

In yesterday's report we had reiterated the view that 9158, the top made Monday, continued to be immediate hurdle, a crossover of which is required for a fresh upmove.

Nifty soared to touch a high of 9094 before closing at 9066 and is set to open near 9050 today.

9158, the top made Monday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 9281-9351, the gap created by gap-down opening on 14th May, would be the next target/resistance zone to eye.

8806, the low made on Monday, continues to he immediate support.

Bajaj Finserve and Colgate will report their quarterly earnings today.

9158 CONTINUES TO BE IMMEDIATE HURDLE; 8700 BELOW 8806

9158 CONTINUES TO BE IMMEDIATE HURDLE; 8700 BELOW 8806

WORLD MARKETS

US indices slipped 0.5%-1.6%, snapping a three-day winning streak, after a report raised concerns about previously publicized trial results for Moderna’s potential coronavirus vaccine.

Treasury Secretary Steven Mnuchin, in his testimony to the Senate Banking Committee, said the Treasury and the Federal Reserve are “fully prepared to take losses” on the remaining capital from the coronavirus bailouts. Mnuchin said he is prepared to distribute the entire $500 billion appropriated to help struggling businesses impacted by the coronavirus pandemic. Fed chair Powell also reiterated the central bank’s commitment to programs aimed at keeping markets functioning and getting money to those who need it during the coronavirus crisis.

WTI crude gained 68 cents, or 2.1%, to settle at $32.50 per barrel while Brent shed 16 cents, or 0.5%, to settle at $34.65.

In Europe, FTSE and CAC fell 0.8% and 0.9% respectively while DAX rose 0.2%. EU car registrations fell 76.3% y-o-y in April. Germany’s closely-watched ZEW survey of economic sentiment for May showed a much greater-than-expected improvement.

AT HOME

After rising more than 2% in the initial trade, benchmark indices gave away nearly three fourth of the gains through the session to end higher by 0.6%.Neverthless, this was the first positive day after three consecutive red days. Sensex settled at 30196, up 167 points while Nifty added 55 points to finish at 8879. BSE mid-cap index rose 0.5% while small-cap index fell 0.2%. BSE Telecom index soared 10.4%, becoming top gainer among the sectoral indices, followed by 2.5% higher Teck index. Capital Good and Energy indices were the top losers, down 1.4% and 1.3% respectively.

FIIs net sold stocks worth Rs 1328 cr but net bought index futures and stock futures worth Rs 2331 cr and 1792 cr respectively. DIIs were net buyers to the tune of Rs 1660 cr.

Rupee appreciated 27 paise to end at 75.63/$.

UPL tumbled after government issued a draft order to prohibit use of certain insecticides, citing risk to humans and animals. Bharti Airtel surged after reporting strong ARPU growth and subscriber addition in 4G network.

Bajaj Finance reported mixed set of numbers and issued a weak outlook. NII rose 38.4% and asset quality remained stable. On the flip side, slippages were elevated at Rs 1037 cr as against Rs 936 q-o-q and cheque bouncing rate was high at 37%. The company expects ex-covid provisions to rise by 80-90% for FY21 and the focus going forward will be on preservation of cash rather than growth.

OUTLOOK

Today morning, Nikkei and Hang Seng are up 0.9% and 0.2% respectively while Shanghai is down 0.2%. SGX Nifty is suggesting about 30 points higher start for our market.

In yesterday's report we had said that 9158, the top made Monday, would now act as immediate hurdle with the stop-loss of which trading shorts can be held on to.

Nifty, after touching a high of 9030, slipped to end at 8879 and is set to open near 8900 today.

9158, the top made Monday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. 8806, the bottom made Monday, is the immediate support, upon breach of which, 8700, the 50% retracement level of the entire 7511-9889 upmove, would be the next support to eye.

Bajaj Auto, Dr Reddy and Ultratech will report their quarterly earnings today.

NIFTY ACHIEVES 8822 TARGET; 9158 IS IMMEDIATE HURDLE

NIFTY ACHIEVES 8822 TARGET; 9158 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices soared 2.4%-3.8%, scoring their best day in six weeks on news that an experimental coronavirus vaccine from Moderna showed promising early signs.

Moderna said that after two doses all 45 trial participants had developed coronavirus antibodies.

WTI crude rose $2.4, or 8.1%, to settle at $31.82 per barrel while Brent settled 7.1% higher at $34.81 as production cuts and the easing of stay-at-home restrictions supported prices.

European markets climbed 3.3%-5.7%.

AT HOME

After a flattish start, benchmark indices saw a steep fall through the session to end with deep cuts of 3.4% each. Sensex lost 1068 points to settle at 30028 while Nifty plunged 313 points to end at 8823. Both the indices closed at their lowest level since 8th April. BSE mid-cap and small-cap indices slipped 3.9% and 2.9% respectively. Except 1.1% and 0.3% higher IT and Teck indices respectively, all the BSE sectoral indices ended in red with Finance index and Bankex leading the losses, down 6.4% and 6.3% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 2513 cr, 803 cr and 522 cr respectively. DIIs were net buyers to the tune of Rs 152 cr.

Rupee depreciated 35 paise to end at 75.91/$.

Bharti Airtel reported strong operational performance. ARPU for Indian operations rose 14% q-o-q at Rs 154. Revenue rose 8.1% to Rs 23723 cr, EBITDA was up 10.4% at Rs 10326 cr while margin improved 90 bps to 43.5%. The company reported net loss (before exceptional items) of Rs 471 cr. Net loss after exceptional items stood at Rs 5237 cr.

OUTLOOK

Today morning, Asian markets are trading with gains of 0.7%-2.45 and SGX Nifty is suggesting around 150 points higher start for our market.

In yesterday's report we had said that 9044, the bottom made last week, continued to be important immediate support, upon breach of which 9044, 8909 and 8822, the bottoms made on 21st and 16th April respectively, would be the subsequent supports to eye.

Nifty broke 9044 support and plunged all the way to 8806, achieving both the downside target above and vindicating our view. The benchmark is set to open near 8950 today.

9158, the top made yesterday, would now act as immediate hurdle, upon crossover of which,  9281-9351, the gap created by gap down opening on 14th May, would be the next hurdle.

8811, the bottom made yesterday, is the immediate support, upon breach of which, 8700, the 50% retracement level of the entire 7511-9889 upmove, would be the next support to eye.

Meanwhile, trading shorts can be held on to with the stop-loss of 9158.

Bajaj Finance will report its quarterly earnings today.

Today, Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will testify before the Senate Committee on Banking, Housing, and Urban Affairs and will update the Congress on the economic response to the coronavirus pandemic.

9044 IS IMMEDIATE SUPPORT; 9281-9351 IMMEDIATE RESISTANCE ZONE

9044 IS IMMEDIATE SUPPORT; 9281-9351 IMMEDIATE RESISTANCE ZONE

WORLD MARKETS

On Friday, after falling more than a percent in the initial trade on the back of weak retail data and rising trade tensions between China and the U.S., US indices saw a sustained northward move to end with gains of 0.2%-0.8%. The turnaround followed better-than-expected data on U.S. consumer sentiment.

The University of Michigan’s consumer sentiment index unexpectedly rose in early May as U.S. fiscal stimulus measures “improved consumers’ finances and widespread price discounting boosted their buying attitudes.” On the flip side, U.S. monthly retail sales fell by a record 16.4% in April, more than the expected fall of 12.3%.

The Trump administration moved to block semiconductor shipments to Chinese company Huawei. On the other end, Hu Xijin, editor-in-chief of Chinese state-run publication Global Times, tweeted that China would “restrict or investigate” U.S. companies including Qualcomm, Cisco Systems and Apple if the U.S. takes further action to block Huawei’s supply chain.

Brent crude rose $1.14, or 3.7%, to $32.27 per barrel, while WTI settled up 5.9% at $29.52 as data showed demand for crude picking up in China.

Data earlier showed China’s industrial output rose 3.9% y-o-y in April, marking the first expansion this year and beating the expected rise of 1.5%. Retail sales, however, fell 7.5% in April.

In Europe, DAX and FTSE rose 1.2% and 1% respectively while CAC inched up 0.1%. Euro zone GDP plunged 3.8% q-o-q in the first three months of the year. German GDP shrank by 2.2% in the first quarter compared to the final three months of 2019, the sharpest quarterly decline for Europe’s largest economy since the financial crisis.

US indices fell 1.2%-2.6% with the S & P 500 notching its worst week since March. European markets tumbled 2.3%-6% while Asian markets saw cuts of 0.7%-1.8%. WTI crude however soared 20%, posting third week of gains.

AT HOME

After falling a percent in the morning, benchmark indices recouped all the losses later to end little changed. Sensex settled at 31097, down 25 points while Nifty lost 6 points to finish at 9136. BSE mid-cap and small-cap indices fell 0.3% and 0.2% respectively. BSE Telecom and Metal indices rose 1.8% and 1.6% respectively, becoming top gainers among the sectoral indices while Realty index and Bankex were the top losers, down 1.4% and 1.1% respectively.

FIIs net sold stocks, index futures and stock futures worth Rs 2388 cr, 620 cr and 319 cr respectively. DIIs were net buyers to the tune of Rs 1225 cr.

Rupee ended unchanged at 75.56/$.

For the week, Sensex and Nifty fell 1.7% and 1.2% respectively, extending the losing streak to second straight week.

India's exports fell by a record 60% to an all-time low of $10.3 bn in April. Imports shrank over 58%, leaving trade deficit at $6.8 bn.

In the fourth tranche of Aatmanirbhar Bharat package, Finance Minster, on Saturday, announced reform measures for civil aviation, coal, minerals, defence output, electricity distribution, and atomic energy sectors.

Measures announced in 5th and final tranche on Sunday included, increased funding under MNREGS, exclusion of debt default due to coronavirus pandemic under the Insolvency and Bankruptcy Code (IBC) and reform linked jump in states’ borrowing limits. In addition, a new public sector enterprise policy that will create a recharged disinvestment playbook and creation of new health infrastructure was also announced.

Government extended nationwide lockdown till 31st May but with considerable relaxation this time. States and Union Territories have been given the final power to delineate Red, Orange and Green zones.

OUTLOOK

Japan’s economy shrank at an annualized rate of 3.4% in January-March, marking the country’s second straight quarter of contraction, meeting the technical definition of a recession.

Today morning, Asian markets are trading with gains of upto half a percent and SGX Nifty is suggesting around 60 points lower start for our market.

In Friday's report we had said that, 9044, the low made on Tuesday, continued to be the next support while 9281-9351, the gap created by Thursday's gap-down opening, would act as immediate resistance zone.

Nifty, after touching a low of 9050, rebounded to end at 9136 but is set to open below 9100 today.

9044, the bottom made last week, which will also roughly coincide with the rising 34-DMA today, continues to be important immediate support to eye. Upon sustained trading below 9044, 8909 and 8822, the bottoms made on 21st and 16th April respectively, would be the subsequent supports to eye.

On the way up, 9281-9351, the gap created by Thursday's gap-down opening, continues to be immediate resistance zone, upon crossover of which, 9584, the top made last week, would be the bigger hurdle to eye.  

Bharti Airtel will report its quarterly earnings today.

8950 BELOW 9044; 9281-9351 IS THE RESISTANCE ZONE

8950 BELOW 9044; 9281-9351 IS THE RESISTANCE ZONE

WORLD MARKETS

After plunging nerly 2% at the open, US indices saw a sustained northward move through the session to end with gains of 0.9%-1.6% as a rally in bank shares offset the dismal round of U.S. unemployment data. A surge in oil prices also boosted the sentiment.

Weekly jobless claims for the week ending May 9 totaled 2.98 million, bringing the total number to more than 36 million since the coronavirus crisis began.

WTI crude surged 9%, or $2.3, to settle at $27.56 per barrel, while Brent crude rose $1.9, or 6.6%, to $31.13 per barrel after U.S. crude inventory fell 745,000 barrels to 531.5 million barrels in the week to May 8 and International Energy Agency forecasted crude stockpiles to shrink by about 5.5 million barrels per day in the second half of 2020.

European markets fell 1.3%-2.8%.

AT HOME

After a gap-down opening, benchmark indices slipped further through the session to end with deep cuts of more than 2.5% to close at 3-week low. Both the indices closed at the lowest level since 21st April, marking a 3-week low. Sensex settled at 31122, down 886 points while Nifty lost 240 points to finish at 9142. BSE mid-cap and small-cap indices however outperformed, falling just 0.4% and 0.6% respectively. BSE IT and Energy indices tumbled 3.6% and 3.4% respectively, becoming top losers among the sectoral indices while Healthcare and FMCG indices were the top gainers, up 0.5% each.

FIIs net sold stocks, index futures and stock futures worth Rs 2153 cr, 1328 cr and 692 cr respectively. DIIs were net buyers to the tune of Rs 802 cr.

Rupee depreciated 9 paise to end at 75.56/$.

Finance Minister Nirmala Sitharaman yesterday released the second tranche of the ₹20 lakh crore economic package with a focus on migrant workers, street vendors and small farmers.

OUTLOOK

Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a flattish start for our market.

In yesterday's report we had said that 9240, the lower end of the gap created by Wednesday's gap-up opening, would serve as immediate support and that below 9240, 9043, the low made on Tuesday, would be the next support to eye.

Nifty broke 9240 support and plunged all the way to 9120 before closing at 9142 and is set to open flat today.

9044, the low made on Tuesday, continues to be the next support to eye. Below 9044, 34-DMA, placed around 8950, would be the next important support.

9281-9351, the gap created by yesterday's gap-down opening, would now act as immediate resistance zone. Above 9351, 9584, the top made on Wednesday, would be major hurdle to eye.

9043 BELOW 9240; 9584 IS IMMEDIATE HURDLE

9043 BELOW 9240; 9584 IS IMMEDIATE HURDLE

WORLD MARKETS

US indices fell 1.6%-2.2% after Federal Reserve chairman warned that economic recovery from the coronavirus pandemic would take many months and more may need to be done to support the economy.

“While the economic response has been both timely and appropriately large, it may not be the final chapter, given that the path ahead is both highly uncertain and subject to significant downside risks,” Powell said in prepared remarks for a webcast event with the Peterson Institute for International Economics.

Brent crude fell 79 cents, or 2.6%, to settle at $29.19 per barrel, while WTI crude shed 49 cents, or 1.9%, to settle at $25.29 per barrel.

European markets slipped 1.5%-2.8%.  U.K. GDP contracted by 5.8% month-on-month in March, the sharpest monthly decline on record.

AT HOME

After opening with a big-gap up opening of nearly 4% on the back of yesterday's announcement made by the Prime Minister, benchmark indices gave away nearly half of the gains to end higher by 2%. Sensex settled at 32008, up 637 points while Nifty added 187 points to finish at 9383. Both the indices closed at the higest level since 30th April, 2020. BSE mid-cap and small-cap indices rose 1.5% and 2% respectively. BSE Capital Goods and Industrials indices climbed 5.1% and 4% respectively, becoming top gainers among the sectoral indices. Healthcare and FMCG indices were the top losers, down 0.8% and 0.6% respectively.

FIIs net sold stocks and index futures worth Rs 283 cr and 49 cr respectively but net bought stock futures worth Rs 469 cr. DIIs were net buyers to the tune of Rs 233 cr.

Rupee appreciated 3 paise to end at 75.47/$.

Finance Minister Nirmala Sitharaman yesterday announced 5.94 lakh cr stimulus via 16 measures. Out of these measures 6 were related to MSMEs, 2 for EPF, 2 for NBFCs/HFCs/MFIs, 1 for DISCONS, 1 for Contractors, 1 for real estate and 3 for Taxation.

These include Rs 3 lakh crore via the collateral free automatic loans for MSMEs, another Rs 20,000 crore subordinate debt for stressed MSMEs and Rs 50,000 crore of equity infusion for MSMEs through a Fund of Funds.

Liquidity relief of Rs 2,500 crore to over three lakh firms through Employee Provident Fund support and another Rs 6,750 crore to employers and employees via reduced EPF contribution.

For NBFCs, a Rs 30,000 crore liquidity scheme was announced through which investments can be made in primary and secondary market transactions in investment-grade debt paper issued by NBFCs, MFIs or HFCs, fully guaranteed by the government of India. Rs 45,000 crore support to NBFCs via a partial credit guarantee scheme was also announced.

Rs 90,000 crore has been earmarked for power distribution companies (DISCOMs), and Rs 50,000 crore liquidity is proposed to be released through rate reductions in Tax Deducted at Source (TDS)/Tax Collection at Source (TCS).

OUTLOOK

Today morning, Asian markets are trading with cuts of 0.6%-1.2% and SGX Nifty is suggesting around 100 points lower start for our market.

In yesterday's report we had said that 9440, the top made on Monday, is the immediate hurdle to eye, upon sustained crossover of which, 9533-9731, the gap created by the big gap down opening on 4th May, would be the next resistance zone to eye.

Nifty, after touching a high of 9584 at the open, slipped to end at 9383 and is set to open near 9300 today.

9240, the lower end of the gap created by yesterday's gap-up opening, would now serve as immediate support. Below 9240, 9043, the low made on Tuesday, would be the next support to eye.

9584, the top made yesterday, which fell into the middle of the 9533-9731 resistance zone mentioned above, is the immediate hurdle to eye. Above 9584, 9731, the upper end of the 9533-9731 gap, would be the next target/resistance.