15044 IS THE UPSIDE LEVEL TO EYE; 14660 IS IMMEDIATE SUPPORT

 

15044 IS THE UPSIDE LEVEL TO EYE; 14660 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices gained 0.7%-0.8% on Friday despite disappointing April jobs report as the weak number made markets believe easy monetary policies will stay in place for longer. S & P 500 and Dow both hit fresh record highs.

 

Nonfarm payrolls increased by only 266,000 jobs last month after rising by 770,000 in March. Expected figure was 978,000. The unemployment rate rose to 6.1%.

 

US 10-year treasury yield, after initially falling to 1.484%, rebounded to end flat at 1.579%. The dollar index fell 0.34% to 90.561, its lowest since Feb. 26. Spot gold jumped 1.2% to $1,837.54 per ounce.

 

Brent as well as WTI crude settled 0.3% higher at $68.28 and $64.90 per barrel.

 

European markets rose 0.4%-1.3%. German exports grew 1.2% in March to notch an 11th consecutive month of expansion, while industrial output grew 2.5% month-on-month. French industrial output grew 0.8% in March.

 

China’s exports unexpectedly accelerated in April and import growth hit a decade high. A private survey pointed to strong expansion in service sector activity.

 

For the week, the Dow rallied 2.7% to break a two-week losing streak. The S&P 500 gained 1.2%, while the Nasdaq Composite shed 1.5%.

 

AT HOME

 

Sensex and Nifty rose 0.7% and 0.5% respectively, extending the winning streak to third straight day and closing at the highest level since 29th April. Sensex settled at 49206, up 256 points while Nifty added 98 points to finish at 14823. Nifty small-cap index rose 0.7% but mid-cap index fell 0.4%. BSE Metal index soared 5.3%, becoming top gainer among the sectoral indices, followed by 2% higher Basic Materials index. Consumer Durables and Capital Goods indices were the top losers, down 0.4% and 0.1% respectively.

 

FIIs net sold stocks and stock futures worth Rs 1143 cr and 285 cr respectively but net bought index futures worth Rs 402 cr. DIIs were net buyers to the tune of Rs 1468 cr.

 

Rupee appreciated 25 paise to end at 73.51/$.

 

For the week, Sensex and Nifty gained 0.9% and 1.3% respectively, extending the winning streak to second consecutive week.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.9% and 0.3% respectively while Shanghai is marginally in the red. SGX Nifty is suggesting around 140 points higher start for our market.

 

In Friday's report we had said that 14850-14875 would be next target zone while 14610, the low made Thursday, would work as immediate support.

 

Nifty, after touching a high of 14863 in the initial trade, eased to end at 14823 and is set to open near 14950 today.

 

15044 the top made on 29^th April would be next upside target to eye after today’s gap up opening.

 

14660 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.