NIFTY RETREATS FROM 14137 HURDLE

 

NIFTY RETREATS FROM 14137 HURDLE

 

WORLD MARKETS

 

After falling more than a percent and half amid a drop in cryptocurrency prices, Dow and S & P 500 rebounded from lower levels to end lower by 0.5% and 0.3% respectively while Nasdaq ended little changed.

 

Cryptocurrency-linked shares, including Tesla, Coinbase and MicroStrategy, led the weakness as bitcoin tanked as much as 30% before cutting the losses to 14%..

 

Minutes from April Fed meeting hinted at considering tapering its asset purchase programs in upcoming meetings. A number of FOMC members  said that should the economic recovery continue to gain momentum, it would be appropriate “at some point” to discuss tightening its accommodative policy.

 

The yield on the benchmark 10-year Treasury note rose 4 basis points to 1.678%. Dollar index rose 0.52% to 90.254, snapping a four-day losing streak. Spot gold eased 0.1% to $1,866.64.

 

Brent crude fell $2.22, or 3.2%, to $66.49 per barrel while WTI dropped $2.30, or 3.5%, to $63.19 per barrel on renewed demand concerns as coronavirus cases in Asia rise and on fears rising inflation might lead the U.S. Federal Reserve to raise interest rates.

 

European markets tumbled 1.2%-1.8%. U.K. consumer prices rose by 1.5% in April after a 0.7% climb in March.

 

AT HOME

 

Sensex and Nifty fell 0.6% and 0.5% respectively, snapping 2-day rising streak. Sensex settled at 49902, down 290 points while Nifty lost 78 points to finish at 15030. Nifty mid-cap index fell 0.1% while small-cap index gained 0.6%. BSE Realty index climbed 2.2%, becoming top gainer among the sectoral indices, followed by 1.2% higher Power and Healthcare indices. Telecom index was the loser, down 1.2%, followed by 0.8% lower Metal, Finance and Auto indices.

 

FIIs net sold stocks and stock futures worth Rs 698 cr and 1426 cr respectively but net bought index futures worth Rs 142 cr. DIIs were net sellers to the tune of Rs 853 cr.

 

Rupee depreciated 12 paise to end at 73.16/$.

 

OUTLOOK

 

Today morning, Nikkei is little changed while Hang Seng and Shanghai are down 0.8% and 0.4% respectively. SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 15137, the top made Tuesday, which roughly coincided with the trendline adjoining tops made in February and March, was the immediate hurdle to eye while immediate support on the hourly chart had moved up to 14825, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 15133, eased to end at 15030.

 

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

 

14825, continues to be immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.