15600 CONTINUES TO BE IMMEDIATE SUPPORT

 

15600 CONTINUES TO BE IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow eased 0.1%, S & P 500 ended flat while Nasdaq gained 0.3%

 

Labor Department reported that job openings hit 9.3 million in April, a record high and more than 1 million above expectations. US trade deficit was $68.9 billion in April, down from $75 billion in March. U.S. small-business confidence edged lower last month, the first decline in four months.

 

US 10-year treasury yield dropped roughly 4 bps to 1.531%. The dollar index inched up 0.12%. Spot gold was up 0.1% at $1,893.78 per ounce.

 

World Bank upgraded its growth forecast, with the global economy now expected to grow 5.6% in 2021, up from an earlier forecast of 4% expansion.

 

Brent crude settled 73 cents, or 1%, higher at $72.22 per barrel while WTI oil advanced 1.18%, or 82 cents, to $70.05 per barrel after a top U.S. diplomat said that even if the United States were to reach a nuclear deal with Iran, hundreds of U.S. sanctions on Tehran would remain in place.

 

In Europe, FTSE and CAC rose 0.25% and 0.1% respectively while DAX fell 0.2%. Eurozone GDP contracted 0.3% q-o-q in the first quarter, compared with the last estimate predicting a 0.6% contraction. However, Germany’s industrial output in April saw an unexpected fall.

 

AT HOME

 

After falling nearly half a percent in the firt hour, benchmark indices recouped most of the losses through the session to end lower by 0.1%. Sensex settled at 52275, down 52 points while Nifty lost 11 points to finish at 15740. Nifty mid-cap and small-cap indices extended the outperformance, rising 0.6% and 0.5% respectively. BSE Telecom and IT indices climbed 1.7% and 1.4% respectively, becoming top gainers among the sectoral indices while Metal index and Bankex were the top losers, down 1.4% and 1% respectively.

 

FIIs net bought stocks worth Rs 1423 cr but net sold index futures and stock futures worth Rs 67 cr and 524 cr respectively. DIIs were net sellers to the tune of Rs 1627 cr.

 

Rupee depreciated 7 paise to end at 72.87/$.

 

World Bank revised India's FY22 GDP growh forecast to 8.3% from 10.1% predicted earlier.

 

OUTLOOK

 

Today morning, Asian markets are trading flat to marginally lower and SGX Nifty is suggesting a flattish start for our market.

 

In yesterday's report we had reiterated the view that 15850 continued to be next upside target and had advised trailing stop-loss in long positions to 15600.

 

Nifty, after touching a low of 15680 rebounded to end at 15740.

 

15850 continues to be next upside target to eye.

 

15600 continues to be immediate support, with the stop-loss of which, trading longs can be held on to.