14720 CONTINUES TO BE IMMEDIATE SUPPORT; 14967 IMMEDIATE HURDLE

 

14720 CONTINUES TO BE IMMEDIATE SUPPORT; 14967 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 slipped 1.4% and 0.9% respectively as inflation concerns mount ahead of the monthly consumer price index report.  Nasdaq, after dropping more than 2% at its low of the session, rebounded to end lower by 0.1%. This was Dow’s worst day since February.

 

Data from the labour department showed job openings at U.S. companies jumped to a record high in March.

 

Brent crude futures rose 35 cents, or 0.5%, to $68.67 a barrel while WTI crude futures rose 49 cents, or 0.8%, to $65.41.

 

The yield on the benchmark 10-year treasury note rose 2 bps to 1.62% while that on the 30-year treasury bond added 3 bps to 2.35%. Spot gold, after falling as much as 1%, pared losses to end 0.2% lower at $1831 per ounce. Dollar index fell 0.16% to 90.093, it's lowest in 2-1/2 months.

 

European markets tumbled 1.7%-2.5%.

 

Earlier, data from China showed April consumer prices index jumped 0.9% from a year ago, slightly missing the 1% forecast. However, the producer price index rose 6.8%, beating the 6.5% projection.

 

AT HOME

 

After falling nearly a percent in the initial trade, Sensex and Nifty cut some of the losses through the session to end lower by 0.7% and 0.6% respectively, snapping 4-day winning streak. Sensex lost 340 points to settle at 49161 while Nifty finished at 14850, down 91 points. Nifty mid-cap and small-cap indices however gained 0.8% each. BSE Utilities and Oil & Gas indices climbed 2.7% each, becoming top gainers among the sectoral indices while Metal index was the top loser, down 1.1%, followed by 1% lower Finance index and Bankex.

 

FIIs net sold stocks, index futures and stock futures worth Rs 336 cr, 2220 cr and 1090 cr respectively. DIIs were net sellers to the tune of Rs 677 cr.

 

Rupee appreciated 1 paise to end at 73.34/$.

 

OUTLOOK

 

Today morning, Nikkei is down 0.7% while Hang Send and Shanghai are off 0.1% each. SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 14967, the top made Monday, would now work as immediate hurdle, while 14720 was the immediate support on the hourly chart.

 

Nifty, after touching a low of 14771, rebounded to end at 14845.

 

14720 continues to be immediate support on the hourly chart, upon breach of which, 14600, where 20-DMA is placed, would be the next downside level to eye.

 

14967, the top made Monday, continues to be immediate hurdle, above which, 15044, the top made on 29th April, would be next upside level to eye.

 

Meanwhile, trading longs can be held on to with the stop-loss of 14720.