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.