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.