NIFTY REBOUNDS FROM 10200 SUPPORT; 10553 CONTINUES TO BE IMMEDIATE HURDLE
WORLD MARKETS
After opening in red, US
indices ended with gains of 1.1%-1.2% thanks to last hour surge as bank stocks
jumped after Fed and four regulatory agencies announced they were going to
change a rule that has limited banks’ ability to make investments.
US weekly jobless claims
totaled 1.5 million last week, slightly higher than the estimate of 1.3
million.
Meanwhile, more than
45,000 new coronavirus cases were confirmed in the US on Wednesday, a record
that surpassed the previous April 26 peak by over 9,000 cases.
Brent crude rose 74
cents, or 1.8%, to $41.05, while WTI settled 71 cents, or 1.87%, higher at
$38.72 per barrel.
European markets rose
0.4%-1%.
In an after market
development, US Federal Reserve's annual stress test found that several banks
could get close to minimum capital levels in scenarios related to the
coronavirus pandemic. As a result, banks have to suspend share buyback programs
and leave dividend payments at current levels for the third quarter. The report
sent some bank shares lower in after-hours trading.
Nike shares slid nearly
4% after the bell on the back of a surprising quarterly loss for the apparel
giant.
AT HOME
It was a day of
consolidation as benchmark indices ended marginally lower after a range bound
but choppy session. Sensex settled at 34842, down 26 points while Nifty lost 16
points to finish at 10288. BSE mid-cap and small-cap indices gained 0.6% and
0.8% respectively. BSE IT and Teck
indices slipped 1.6% and 1.2% respectively, becoming top losers among the
sectoral indices while FMCG index climbed 2.2%, becoming top gainer, followed
by 1% higher Healthcare index.
FIIs net sold stocks and
index futures worth Rs 1051 cr and 1002 cr respectively but net bought stocks
futures worth Rs 734 cr. DIIs were net sellers to the tune of Rs 256 cr.
Rupee appreciated 5 paise
to end at 75.66/$.
For the June derivative
series, Nifty gained 8.4%.
OUTLOOK
Today morning, Shanghai
is shut while Nikkei is up 1% and Hang Seng is down 0.2%. SGX Nifty is
suggesting around 60 points higher start for our market.
In yesterday's report we
had said that immediate support on the hourly chart had moved up to 10200 while
10553, the top made Wednesday, was the important resistance.
Nifty, after touching a
low of 10194, rebounded to close at 10288 and is set to open near 10350 today.
10200 continues to be
immediate support, upon sustained trading below which, 10050 and 9880, the 50%
and 67% retracement levels of the recent 9544-10553 upmove, would be next
supports to eye.
10553, the top made
Wednesday, which also coincided with the 61.8% retracement level of the entire
12430-7511 fall, continues to be important resistance, a corssover of which is
required for a fresh upmove.
ITC will report its quarterly earnings today.
No comments:
Post a Comment