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.