15336 ABOVE 15137; 14825 IS IMMEDIATE SUPPORT

 

15336 ABOVE 15137; 14825 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices fell 0.6%-0.8% after data showed housing starts dropped sharply last month. Dow was also dragged down by a 3% drop in Chevron while Nasdaq was hit as Facebook, Amazon, Apple, Netflix and Google-parent Alphabet all closed lower.

 

Housing starts fell 9.5% to a seasonally adjusted annual rate of 1.569 million units in April, as against expected fall to 1.7 million units.

 

Retailers Home Depot, Macy’s and Walmart all reported better-than-expected earnings on Tuesday.

 

Brent crude settled 1.1% lower at $68.71 per barrel while WTI crude fell 75 cents to settle at $68.71 per barrel after media reports said the United States and Iran have made progress on reviving a deal restricting Iran’s nuclear weapons development.

 

The yield on the benchmark 10-year Treasury note rose to 1.651%. The dollar index slipped 0.5% to 89.747, extending the losing streak to fourth straight day and hitting 2-1/2 month low. Spot gold inched up 0.1% to $1,868.57 per ounce.

 

In Europe FTSE ended little changed while DAX and CAC fell 0.1% and 0.2% respectively. Euro zone GDP declined by 0.6% in the first quarter, in line with initial estimates and confirming that the 19-member bloc entered a technical recession to start the year. Flash first-quarter employment figures showed a 0.3% quarterly decline across the euro zone, while U.K. unemployment fell to 4.8% between January and March.

 

AT HOME

 

Benchmark indices climbed 1.24% each, extending the winning streak to second straight day and closing at the highest level since 16 March and 10 March respectively. Sensex settled at 50193, up 612 points while Nifty added 185 points to finish at 15108. Nifty mid-cap and small-cap indices surged 1.8% and 1.6% respectively. Except 1.7% and 0.4% lower Telecom and FMCG indices respectively, all the BSE sectoral indices ended in green, with Auto index leading the tally, up 3.2%, followed by 2.5% each higher Consumer Discretionary Goods & Services, Industrials and Consumer Durables indices.

 

FIIs net bought stocks and index futures worth Rs 618 cr and 3076 cr respectively but net sold stock futures worth Rs 957 cr. DIIs were net buyers to the tune of Rs 450 cr.

 

Rupee appreciated 17 paise to end at 73.04/$.

 

OUTLOOK

 

Markets in Hong Kong and South Korea are closed today for holidays. Nikkei and Shanghai are down 1.3% and 0.5% respectively. SGX Nifty is suggesting around 80 points lower start for our market.

 

In yesterday's report we had said that 15100, where a trendline adjoining tops made in February and March was placed, was the next upside target/resistance to eye and had advised holding on to long positions with the stop-loss of 14800.

 

Nifty surged to touch a high of 15137 before closing at 15108. The benchmark is set to open below 15050 today.

 

15137, the top made yesterday, which roughly coincided with the trendline adjoining tops made in February and March, is the immediate hurdle to eye, upon crossover of which, 15336, the top made in March, would be the next upside level to eye.

 

Immediate support on the hourly chart has moved up to 14825, with the stop-loss of which, trading longs can be held on to.