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.