STAY LONG WITH THE STOP-LOSS OF 14555

 

STAY LONG WITH THE STOP-LOSS OF 14555

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.7% each while Nasdaq rose 0.2% following strong economic data and a blowout earnings results from Apple and Facebook.

 

US GDP increased at a 6.4% annualized rate in the first quarter, the second-fastest growth since the third quarter of 2003. Initial claims for state unemployment benefits fell 13,000 to 553,000 during the week ended April 24,

 

US 10-year Treasury yields rose 2 basis points to 1.639%. Spot gold fell 0.9% to $1,764.50 per ounce.

 

Amazon's profits more than tripled to $8.1 billion and January-to-March sales soared 44% to $108 billion. Twitter's user growth figure and second-quarter revenue guidance fell short of forecasts.

 

Brent crude rose 89 cents, or 1.3%, to $68.16 a barrel while WTI crude was up 83 cents, or 1.3%, at $64.69 a barrel.

 

In Europe, FTSE and CAC ended marginally lower while DAX fell 0.9%. Eurozone economic sentiment climbed to 110.3 points in April compared to 100.9 in March, vastly outstripping estimates. German consumer price inflation grew to 2.1% in April.

 

AT HOME

 

After rising more than a percent in the initial trade, benchmark indices gave away most of the gains to end just marginally higher. Sensex settled at 49765, up 32 points while Nifty added 30 points to finish at 14894. Nifty mid-cap index fell 0.1% while small-cap index gained 0.6%. BSE Metal index soared 5.2%, becoming top gainer among the sectoral indices, followed by 2.4% higher Basic Materials index. Auto and Telecom indices were the top losers, down 1.1% and 1% respectively.

 

FIIs net bought stocks and stock futures worth Rs 809 cr and 481 cr respectively but net sold index futures worth Rs 648 cr. DIIs were net sellers to the tune of Rs 942 cr.

 

Rupee appreciated 31 paise to end at 74.04/$.

 

For the April derivative series, Nifty climbed 4%.

 

OUTLOOK

 

Today morning, Hang Seng is down more than a percent while Shanghai is off half a percent. SGX Nifty is suggesting around 130 points lower start for our market.

 

In yesterday's report we had said that 14984, the top made on 9th April, was the next upside level, above which, 15150, around which a trendline adjoining recent tops made on daily chart was placed, would be the next upside level to eye.

 

Nifty opened near 14984 and touched a high of 15044, but retreated from there to end at 14895 and is set to open below 14800 today.

 

15044, the top made yesterday, would work as immediate hurdle, upon crossover of which, 15150, around which a trendline adjoining recent tops made on daily chart was placed, would be the next upside level to eye.

 

14555 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Reliance Industries will report its quarterly earnings today.

 

15150 ABOVE 14984; TRAIL STOP-LOSS TO 14520

 

15150 ABOVE 14984; TRAIL STOP-LOSS TO 14520

 

WORLD MARKETS

 

US indices fell 0.1%-0.5% after Federal Reserve Chairman Jerome Powell said during a press conference following the Federal Open Market Committee’s decision that there are some signs of froth in the market.

 

Fed kept interest rates unchanged and re-affirmed its accommodative policy to support the economic recovery. Fed Chair Powell said the recovery is “uneven and far from complete.” He added that it’s still not time to discuss reducing policy accommodation, including asset purchases.

 

The yield on the benchmark 10-year Treasury note was little changed at 1.615%. Dollar index slipped 0.3% to 90.60. Spot gold rose 0.2% to $1,780.56 per ounce.

 

Brent crude rose 1.3%, or 85 cents, to settle at $67.27 per barrel while WTI crude futures settled 1.5%, or 92 cents, higher at $63.86 per barrel after U.S. distillate inventories posted a large drawdown and refining activity picked up.

 

Apple reported 54% revenue jump during the quarter and said it would increase its dividend by 7%, and authorized $90 billion in share buybacks. Facebook’s revenue jumped 48%, driven by higher-priced ads.

 

In Europe, FTSE and DAX rose 0.3% each while CAC climbed 0.5%.

 

AT HOME

 

Benchmark indices soared nearly a percent and half each, extending the winning streak to third straight day and closing at the highest level since 8th April. Sensex settled at 49733, up 790 points while Nifty added 211 points to finish at 14864. Nifty mid-cap and small-cap indices rose 1.1% and 0.6% respectively. BSE Bankex and Finance indices soared 3% and 2.8% respectively, becoming top gainers among the sectoral indices while Realty and Metal indices were the top losers, down 0.5% and 0.3% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 766 cr, 167 cr and 1368 cr respectively. DIIs were net buyers to the tune of Rs 436 cr.

 

Rupee appreciated 30 paise to end at 74.35/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.3%-1% and SGX Nifty is suggesting around 120 points higher start for our market.

 

In yesterday's report we had said that 14698, the top made on 15th April, continued to be upside target/resistance, above which, 14785, the upper end of the gap created by big gap-down opening on 12th April, would be the next upside level to eye. We had also advised holding on to long positions with the stop-loss of 14430.

 

Nifty crossed 14698 hurdle and surged all the way to 14890 before closing at 14864. The benchmark is set to open above 14950 today.

 

14984, the top made on 9th April, is the next upside level to eye. Above that, 15150, around which a trendline adjoining recent tops made on daily chart is placed, would be the next upside level to eye.

 

Immediate support on the hourly chart has moved up to 14520, with the stop-loss of which, trading longs can be held on to.

 

HUL, Bajaj Auto and Titan will report their quarterly earnings today.

 

STAY LONG WITH THE STOP-LOSS OF 14430

 

STAY LONG WITH THE STOP-LOSS OF 14430

 

WORLD MARKETS

 

Dow and S & P 500 ended little changed while Nasdaq fell 0.3% ahead of a big batch of tech earnings and outcome of Fed policy meeting.

 

Tesla fell 4.5% even after posting record net income of $438 million and also beating Wall Street’s earnings and revenue expectations.

 

S&P CoreLogic Case-Shiller home price index in February registered the biggest gain in 15 years, rising 12% year over year and up from 11.2% in January. The Conference Board’s consumer sentiment index jumped to 121.7, the highest since February 2020.

 

The Federal Reserve kicked off its two-day policy meeting. The central bank is not expected to take any action, but is expected to defend its policy to let inflation run hot. Markets will pay close attention to comments from Chairman Jerome Powell, particularly regarding inflation.

 

The yield on the benchmark 10-year Treasury note advanced 4 basis points to 1.61%. Dollar index was flat at 90.912.

 

Brent crude settled 1.2% higher at $66.42 per barrel while U.S. oil advanced 1.6% to $62.94 per barrel.

 

In Europe, FTSE and DAX fell 0.3% each while CAC was little changed.

 

AT HOME

 

Benchmark indices climbed 1.2% each, extending the winning streak to second consecutive day and closing at the highest level since 9th April. Sensex settled at 48944, up 557 points while Nifty added 168 points to finish at 14653. Nifty mid-cap and small-cap indices surged 1.6% and 1.7% respectively. All the BSE sectoral indices ended in green, with Metal and Basic Materials indices leading the tally, up 2.8% and 2.5% respectively.

 

FIIs net sold stocks and index futures worth Rs 1455 cr and 64 cr respectively but net bought stock futures worth Rs 953 cr. DIIs were net buyers to the tune of Rs 1463 cr.

 

Rupee appreciated 6 paise to close at 74.65/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are trading with modest gains while Shanghi is flat. SGX Nifty is suggesting around 30 points higher start for our market.

 

In yesterday's report we had said that 14559 was the immediate hurdle, above which, 14698, the top made on 15th April, would be the next target to eye.

 

Nifty crossed 14559 hurdle and surged all the way to 14667 before closing at 14653.

 

14698, the top made on 15th April, which also roughly coincides with the 34-DMA, continues to be upside target/resistance to eye. Above 14698, 14785, the upper end of the gap created by big gap-down opening on 12th April, would be the next upside level to eye.

 

14430 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

14698 ABOVE 14559; 14273 IS IMMEDIATE SUPPORT

 

14698 ABOVE 14559; 14273 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow fell 0.2% while S & P 500 and Nasdaq rose 0.2% and 0.9% respectively to close at record highs,

 

Brent crude settled 0.7% lower at $65.65 per barrel while WTI crude futures slid 0.4% to settle at $61.91 per barrel.

 

The yield on the benchmark 10-year Treasury note was flat at 1.57%. Spot gold was up 0.1% to $1,778.50 per ounce.

 

European markets rose 0.1%-1%. German business morale improved by less than expected in April as a third wave of COVID-19 infections and problems with supply of components in the industrial sector seemed to slow the recovery.

 

AT HOME

 

Benchmark indices climbed a percent each to close at the highest level since 16th April. Sensex settled at 48386, up 508 points while Nifty added 143 points to finish at 14485. Nifty mid-cap and small-cap indices rose 0.8% and 1.1% respectively. Except 0.6% lower Healthcare index, all the BSE sectoral indices ended in green, with Realty and Metal indices leading the tally, up 3.7% and 2.2% respectively.

 

FIIs net sold stocks worth Rs 1112 cr but net bought index futures and stock futures worth Rs 1218 cr and 1210 cr respectively. DIIs were net buyers to the tune of Rs 1023 cr.

 

Rupee closed at 74.71/$, appreciating 29 paise compared to previous close.

 

OUTLOOK

 

Today morning, Nikkei and Shanghai are down 0.1% and 0.3% respectively while Hang Seng is marginally higher. SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had said that 14527, the top made last week, continued to be the immediate hurdle while 14151, the bottom made last week, continued to be immediate support.

 

Nifty, after touching a high of 14557, ended at 14485.

 

14557, the top made yesterday, also coincided with the upper end of the gap created by last Monday's gap-down opening placed at 14559. This makes 14559 immediate hurdle to eye, above which, 14698, the top made on 15th April, which also roughly coincides with the 34-DMA, would be the bigger hurdle to eye.

 

14273, the low made Friday, is the immediate support, below which, 14151, the bottom made last week, would be the next downside level to eye.

 

Maruti, Axis Bank, Bajaj Finance and Britannia will report their quarterly earnings today.

 

14527 CONTINUES TO BE IMMEDIATE HURDLE; 14151 IMMEDIATE SUPPORT

 

14527 CONTINUES TO BE IMMEDIATE HURDLE; 14151 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices gained 0.7%-1.4% as markets discounted odds of a drastic increase in capital gains tax for the rich.

 

Reports on Thursday suggested that Biden is planning to hike the capital gains rate to 39.6% for those earning $1 million or more, up from 20% currently. However, with Democrats’ narrow majority control in Congress, a tax bill like this could face challenges and many expect a less dramatic increase is more likely.

 

Markit’s preliminary manufacturing PMI for April came in at 60.6, slightly ahead of estimates. The composite index came in at 62.2. New home sales jumped in March after February’s cold weather across the country, with more than a million houses sold.

 

Intel dropped more than 5% after it issued second-quarter earnings guidance below expectation. American Express fell over 4% after reporting quarterly revenue that was slightly short of forecasts. Snap jumped 7.5% after the company said it saw accelerating revenue growth and strong user numbers during the first quarter.

 

Brent crude rose 1.1%, or 71 cents, to $66.11 per barrel while WTI crude futures settled 1.2%, or 71 cents, higher at $62.14 per barrel.

 

In Europe, except a flat FTSE, other markets fell upto 0.4%. IHS Markit’s euro zone flash PMI came in at 53.7 in April versus 53.2 in March. The U.K.’s composite PMI surged to 60.0 in April from 56.4 in March as the country embarks on a phased exit from lockdown. U.K. retail sales soared 5.4% in March, vastly outstripping expectation.

 

For the week, US indices fell 0.1%-0.5% with Dow and S & P 500 snapping 4-week winning streak while Nasdaq fell after three consecutive up weeks. Oil fell nearly 2% on concerns about sliding fuel demand in India.

 

AT HOME

 

After rising four tenth of a percent in the morning, benchmark indices slipped eight tenth of a percent in the noon session to end lower by four tenth of a percent. Sensex lost 202 points to settle at 47878 while Nifty finished at 14341, down 65 points. Nifty mid-cap and small-cap indices however rose 0.3% and 0.4% respectively. BSE Power and Utilities indices climbed 2.4% and 1.8% respectively, becoming top gainers among the sectoral indices while Telecom and Realty indices were the top losers, down 1.3% and 1.1% respectively.

 

FIIs net sold stocks and index futures worth Rs 1361 cr and 233 cr respectively but net bougth stock futures worth Rs 1297 cr. DIIs were net buyers to the tune of Rs 1696 cr.

 

Rupee depreciated 6 paise to end at 75.01/$.

 

For the week, Sensex and Nifty slipped 1.9% each, extending the losing streak to third consecutive week.

 

HCL Tech was a miss on revenue as well as margin front. Constant currency and dollar revenue growth stood at 2.5% and 3% respectively as against expected figures of 5% and 3.6% respectively.

 

ICIC Bank reported best asset quality in 21 quarters. GNPA improved to 4.96% from 5.42% q-o-q while Net NPA ratio improved to 1.14% from 1.26%.

 

The Biden administration has said it will immediately make raw materials needed for India’s coronavirus vaccine production available. This comes after Britain, France and Germany also pledged aid to India over the weekend.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.2%-0.5% and SGX Nifty is suggesting around 60 points higher start for our market.

 

In Friday's report we had said that 14151, the bottom made Thursday, which also coincided with a downward sloping trendline adjoining recent bottoms on the hourly chart, was the immediate support to eye while 14527, the top made Monday, continued to be immediate hurdle.

 

Nifty, after touching a high of 14461, eased to end at 14341 and is set to open near 14400 today.

 

14527, the top made last week, continues to be the immediate hurdle.

 

14151, the bottom made last week, which also coincided with a downward sloping trendline adjoining recent bottoms on the hourly chart, continues to be immediate support.

 

14527 CONTINUES TO BE IMMEDIATE HURDLE

 

14527 CONTINUES TO BE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.9% each on reports that President Joe Biden is seeking an increase in the tax on capital gains to 39.6% from 20% for Americans earnings more than $1 million.

 

First-time claims for unemployment insurance totaled 547,000, which was below the estimate of 603,000.

 

Republicans rolled out a counteroffer to Biden’s $2 trillion infrastructure plan. The $568 billion framework includes funding for bridges, airports, roads and water storage. It does not include tax increases.

 

Sales of previously-owned homes fell 3.7% to a seven-month low in March.

 

Intel shares fall 3.1% in extended trading after second-quarter earnings guidance missed expectation. Snap shares rose 4.7% in after-hours trading after it said it saw accelerating revenue growth and strong user numbers during the first quarter.

 

Brent as well WTI crude inched up 0.1% each to $65.40 and $61.43 per barrel respectively.

 

The yield on the benchmark 10-year Treasury note was little changed at 1.58%. Dollar index rose 0.2% to 91.28. Spot gold fell 0.4% to $1,786 per ounce.

 

European markets rose 0.6%-1%. The European Central Bank left policy unchanged as expected, keeping large stimulus flowing even as it predicted a rebound in the euro zone economy in the coming months as pandemic restrictions are lifted.

 

AT HOME

 

After falling a percent at the open, benchmark indices surged 1.8% from the bottom of the day to end higher by 0.8% each, snapping 2-day losing streak. Sensex added 374 points to settle at 48080 while Nifty finished at 14406, up 110 points. Nifty mid-cap and small-cap indices rose 0.5% and 0.8% respectively. BSE Bankex and Finance indices climbed 2.1% and 1.9% respectively, becoming top gainers among the sectoral indices while Consumer Durables index slipped 1.5%, becoming top loser, followed by 0.6% lower FMCG index.

 

FIIs net sold stocks worth Rs 910 cr but net bought index futures and stock futures worth Rs 438 cr and 1075 cr respectively. DIIs were net buyers to the tune of Rs 850 cr.

 

Rupee depreciated 8 paise to end at 74.95/$.

 

OUTLOOK

 

Today morning, Nikkei is off half a percent while Hang Seng and Shanghai are up 0.8% and 0.3% respectively.  SGX Nifty is suggesting around 50 points lower start for our market.

 

In yesterday's report we had said that upon sustained trading below Monday's bottom, i.e. 14191, 13900-13850 would be the next support zone to eye. We had also said that 14527, the top made Monday, would act as immediate hurdle.

 

Nifty, after touching a low of 14151 in the initial trade, rebounded to end at 14406 and is set to open near 14350 today.

 

14527, the top made Monday, continues to be immediate hurdle, a crossover of which is required for a fresh upmove. If that happens, 14698, the top made last week, which also coincides with 34-DMA, would be the bigger hurdle to eye.

 

14151, the bottom made yesterday, which also coincides with a downward sloping trendline adjoining recent bottoms on the hourly chart, is the immediate support to eye. Below 14151, 13900-13850 would be the next support zone.

 

13850 BELOW 14191; 14526 IS THE IMMEDIATE HURDLE

 

13850 BELOW 14191; 14526 IS THE IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices fell 0.7%-0.9% on Tuesday, extending the losing streak to second consecutive day, as reopening plays led the market lower amid renewed concerns about rising new Covid cases globally

 

Yesterday, Dow and S & P 500 rose 0.9% each while Nasdaq climbed 1.2%, snapping a two-day losing streak, as companies tied to the economy reopening led the way higher.

 

Brent crude fell $1.30, or 2%, to $65.27 a barrel, while WTI crude settled 2.1%, or $1.32, lower at $61.35 per barrel, falling for a second day to their lowest in a week on a surprise build in U.S. crude inventories and concerns surging COVID-19 cases in India.

 

The yield on the benchmark 10-year Treasury note was flat at 1.57%. Spot gold rose 0.8% to $1,791.51 per ounce.

 

European markets gained 0.3%-0.7%.

 

AT HOME

 

After rising nearly a percent at the open, benchmark indices nosedived around a percent and half from the top of the day to end lower by about half a percent, extending the losing streak to second straight day and closing at the lowest level after January 2021. Sensex lost 243 points to settle at 47705 while Nifty finished at 14296, down 63 points. Nifty mid-cap and small-cap indices however gained 0.3% and 1% respectively. BSE IT and Teck indices were the top losers among the sectoral indices, down 1% and 0.8% respectively while Healthcare was the top gainer, up 1.2%, followed by 0.9% higher Auto and Capital Goods indices.

 

FIIs net sold stocks and stock futures worth Rs 1082 cr and 442 cr respectively but net bought index futures worth Rs 307 cr. DIIs were net buyers to the tune of Rs 1323 cr.

 

Rupee ended unchanged at 74.87/$.

 

India reported a record daily covid cases of nearly 3 lac while daily death number surged to 2023.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.8% and 0.3% respectively while Shanghai are marginally in the red. SGX Nifty is trading around 14170, suggesting around 125 points lower start when compared to Tuesday's close of Nifty future.

 

In Tuesday's report we had said that 14559, the upper end of the gap created by Monday's gap-down opening, would now act as immediate hurdle while 14191, the bottom made Monday, would be the immediate support to eye.

 

Nifty, after touching a high of 14527, reversed to end at 14296 and is set to open below 14200 today.

 

14191, the bottom made Monday, continues to be immediate support, upon sustained trading below which, 13900-13850 would be the next support zone to eye.

 

14527, the top made Monday, would act as immediate hurdle.

 

14559 IS THE IMMEDIATE HURDLE; 14191 IMMEDIATE SUPPORT

 

14559 IS THE IMMEDIATE HURDLE; 14191 IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.4%-1%, as weakness in the technology sector weighed on the broader market.

 

Tesla, a holder of bitcoin, fell more than 3% after Bitcoin was slammed over the weekend.

 

White House chief medical advisor Dr. Anthony Fauci said he expects the U.S. will resume administration of the Johnson & Johnson vaccine.

 

10-year Treasury yiel rose 4 bps to 1.61%. Spot gold eased 0.3% to $1,770.97 per ounce. Dollar index fell to 91.079, it's lowest in 6-weeks.

 

Brent as well as WTI crude rose 0.4% each to $67.05 and $63.38 a barrel respectively.

 

In Europe, FTSE and DAX fell 0.3% and 0.6% respectively while CAC rose 0.2%. The euro zone current account surplus narrowed in February to 25.9 billion euros ($31.2 billion) from 34.7 billion in January as net exports declined.

 

AT HOME

 

After plunging nearly 3% in the first hour, benchmark indices recouped some of the losses through rest of the session to end with cuts of 1.8% each, snapping 3-day winning streak. Sensex settled at 47949, down 882 points while Nifty lost 258 points to finish at 14359. Nifty mid-cap and small-cap indices tumbled 2.1% and 2.4% respectively. Except 0.4% lower Healthcare index, all the BSE sectoral indices ended in red, with Realty and Capital Goods indices leading the losses, down 4% and 3.1% respectively.

 

FIIs net sold stocks and index futures worth Rs 1634 cr and 310 cr respectively but net bought stock futures worth Rs 346 cr. DIIs were net buyers to the tune of Rs 2356 cr.

 

Rupee depreciated 52 paise to end at 74.87/$.

 

The capital region of Delhi ordered a six-day lockdown, joining around 13 other states across India that have decided to impose restrictions, curfews or lockdowns in their cities.

 

Government announced that from May 1, everyone above the age of 18 will be eligible to get Covid-19 vaccine.

 

Overall Covid cases stand at just over 15 million, making India the second-worst affected after the United States, which has reported more than 31 million infections. Active cases stand at more than 2 million, also the second-highest after the US. Deaths from COVID-19 also rose by a record 1,619 to nearly 180,000.

 

OUTLOOK

 

Today morning, Nikki is down nearly 2% while Hang Seng and Shanghai are marginally higher. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 14353, the low made last Thursday, would be the immediate support, below which, 14248, the bottom made last week, would be the next downside level to eye.

 

Nifty opened below 14353 and plunged all the way to 14191, from where it rebounded to end at 14359.

 

14559, the upper end of the gap created by yesterday's gap-down opening, would now act as immediate hurdle.

 

14191, the bottom made yesterday, would be the immediate support to eye.