14416 IS THE IMMEDIATE SUPPORT; 14750 IMMEDIATE HURDLE

 

14416 IS THE IMMEDIATE SUPPORT; 14750 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 gained 0.7% and 0.3% respectively while Nasdaq fell half a percent as shares of companies that would benefit the most from an economic reopening rose.

 

Retail stocks led the market advance with Gap and Macy’s rallying more than 7%.

 

New York Gov. Andrew Cuomo announced that most capacity restrictions will be lifted across New York, New Jersey and Connecticut, while 24-hour subway service will resume in New York City later this month. Florida Gov. Ron DeSantis signed an executive order on Monday that immediately suspends the state’s remaining health restrictions.

 

US ISM Manufacturing PMI for April came in at 60.7, lower than the expected 65.0 and March’s level of 64.7. IHS Markit Manufacturing Business Activity PMI Index came in at 60.5, above the 59.1 print in March.

 

The yield on the benchmark 10-year Treasury note fell about 3 basis points to 1.608%. Dollar index fell 0.4% to 90.88. Spot gold rose 1.3% to $1,791 per ounce.

 

Brent crude rose 80 cents, or 1.2%, to $67.56 per barrel while WTI settled 91 cents, or 1.4%, higher at $64.49 per barrel.

 

European markets gained 0.6%-1.1%. Euro zone factory activity growth surged to a record high in April. German retail sales posted their biggest year-on-year increase in March since the start of the Covid pandemic.

 

AT HOME

After starting with a cut of a percent and half, benchmark indices recouped all the losses through the session to end little changed. Sensex settled at 48718, down 63 points while Nifty added 3 points to finish at 14634. Nifty mid-cap and small-cap indices gained 0.3% and 1.1% respectively. BSE Telecom index surged 3.5%, becoming top gainer among the sectoral indices, followed by 1.5% higher Metal index. Consumer Durables and Energy indices were the top losers, down 2% and 1.1% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2289 cr, 1916 cr and 193 cr respectively. DIIs were net buyers to the tune of Rs 553 cr.

 

Rupee appreciated 14 paise to end at 73.91/$.

 

OUTLOOK

 

Markets in Japan and China continue to be closed for holidays. Hang Seng is little changed and SGX Nifty is suggesting around 15 points lower start for our market.

 

In yesterday's report we had said that 14446, the 67% retracement level of the recent 14151-15044 upmove, would be the next downside level to eye after gap-down opening.

 

Nifty, after touching a low of 14416 in the initial trade, rebounded to end at 14634.

 

14750 is the immediate hurdle on the hourly chart, upon crossover of which, 14855, the top made on Friday, would be the next upside level to eye.

 

14416, the low made yesterday, is the immediate support.