17160 IS THE NEXT SUPPORT; 17664 IMMEDIATE HURDLE

 

17160 IS THE NEXT SUPPORT; 17664 IMMEDIATE HURDLE

 

WORLD MARKETS

 

Dow and S & P 500 rose 1% each on Wednesday while Nasdaq jumped 2%, snapping 3-day losing streak for S&P 500 and Nasdaq, on mostly positive earnings.

 

On Thursday, Nasdaq nosedived 2.1% while S & P 500 and Dow fell 1.2% and 0.3% respectively as inflation fears and higher bond yields drove tech shares lower.

 

Retail sales figures for March slightly missed expectations with a 0.5% gain. Jobless claims jumped 185,000 for the week ending April 9.

 

Goldman Sachs’ stock price fell 0.1% after reporting a first-quarter earnings beat. Morgan Stanley rose 0.7% after posting better-than-expected earnings. Wells Fargo plunged 4.5% after first-quarter revenue fell short of estimates and the bank said credit losses were likely to increase.

 

US 10-year treasury yield jumped 13 bps to 2.827%, reaching its highest point since late 2018. Dollar index rose half a percent to 100.34, hitting a 2-year high. Spot gold fell 0.3% to $1,971.95 per ounce.

 

Brent futures settled up $2.92, or 2.7%, at $111.70 a barrel and WTI futures closed $2.70 or 2.6% higher at $106.95 a barrel.

 

European markets gained 0.5%-0.7%. The ECB kept its monetary policy unchanged but confirmed it will end its bond buying in the third quarter.

 

For the week, US indices fell 0.8%-2.6%. Brent and WTI climbed 8.6% and 6.1% respectively, snapping a 2-week losing streak. Dollar index rose 0.6%. Gold gained 1.4%.

 

AT HOME

 

Sensex and Nifty fell 0.4% and 0.3% respectively on the last day of the truncated trading week, extending the losing streak to third straight day. Sensex settled at 58338, down 237 points while Nifty lost 55 points to finish at 17475. Nifty mid-cap index was little changed while small-cap index inched up 0.2%. BSE Auto and Finance indices were the top losers among the sectoral indices, down 0.8% and 0.7% respectively while Oil & Gas and Capital Goods indices were the top gainers, up 0.9% and 0.8% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2061 cr, 2005 cr and 147 cr respectively. DIIs  were net buyers to the tune of Rs 1411 cr.

 

Rupee depreciated 4 paise to end at 76.17/$.

 

For the week, Sensex and Nifty slipped 1.9% and 1.7% respectively, snapping a 2-week winning streak.

 

Infosys missed revenue and margin expectation. HDFC Bank was a mixed bag as net profit and net interest margin missing expectation while loan growth was strong.

 

OUTLOOK

 

Markets in Australia and Hong Kong are closed today for a holiday. Nikkei and Shanghai are down 1.8% and 0.9% respectively. SGX Nifty is trading around 17300, suggesting nearly 200 points lower start for our market.

 

In Wednesday's report we had said that 17422, the low made on 1st April, continued to be immediate support to eye while 17750-17800 was the immediate resistance zone.

 

Nifty, after making a bottom of 17457, closed at 17475. The benchmark is set to open near 17300 today.

 

200 and 34-DMA, placed around 17160 and 17080 respectively, are the next downside levels to eye; 17664, the top made Wednesday, would now act as immediate hurdle, with the stop-loss of which, trading shorts can be held on to.

 

200-DMA, placed around 36900, is the downside levels to eye for Banknifty; 37990, the top made Wednesday, would act as immediate hurdle.