17440 ABOVE 17323; 16950 IS IMMEDIATE SUPPORT

 

17440 ABOVE 17323; 16950 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices climbed 1.8%-3.1% with Nasdaq on the top, as a slew of corporate earnings reports drove market sentiment.

 

Shares of Meta surged 17.5% following a beat on earnings. Qualcomm gained 9.7% on the back of strong earnings and PayPal surged 11.5% despite issuing weak guidance for the second quarter. Merck shares rose 4.9% and led gainers on the Dow after an earnings beat. McDonald’s, Eli Lilly and Southwest all closed higher after their quarterly reports. Apple and Amazon both rose more than 4% ahead of reporting earnings after the bell.

 

U.S. GDP unexpectedly declined in the first quarter by 1.4% from the previous year, compared to the 1% growth expected.

 

US 10-year treasury yield eased 1 bps to 2.826%. Dollar index rose two-third of a percent to 103.67, hitting its highest level since 2002. Gold rose half a percent to $1894 per ounce. Yen tumbled 2.2% to 131.2 a dollar after the Bank of Japan (BOJ) doubled-down on its super-low yield policy by offering to buy endless amounts of bonds every session as needed.

 

Oil prices rallied on reports that Germany is no longer opposed to an embargo on Russian oil. Brent crude futures rose 2.2% to $107.59 and WTI crude settled 3.3% higher at $105.36 per barrel.

 

European markets gained 1%-1.4%

 

Meanwhile, Russia’s President Putin warned the West of a “lightning fast” response to any country intervening in the Ukraine war.

 

Back in the US, Amazon shares tumbles by about 10% in extended trading after reporting a surprise loss thanks to its investment in Rivian and issued weak revenue guidance for the second quarter. Apple shares were down more than 3% after hours after CFO said supply chain constraints could hinder fiscal third-quarter revenue. Intel fell more than 3% in extended trading after the company issued weak guidance for its fiscal second quarter.

 

AT HOME

 

Benchmark indices climbed 1.2% each on the last day of the April derivative series. Sensex settled at 57521, up 701 points while Nifty added 206 points to finish at 17245. Nifty mid-cap and small-cap indices rose 0.6% and 0.4% respectively. Except 0.8% lower Telecom index, all the BSE sectoral indices ended in green, with FMCG and Power indices on the top, up 2.1% and 1.9% respectively.

 

 

FIIs net bought stocks, index futures and stock futures worth Rs 743 cr, 704 cr and 2183 cr respectively. DIIs were net buyers to the tune of Rs 781 cr.

 

Rupee appreciated 5 paise to end at 76.48/$.

 

For the April derivative series, Nifty fell 1.2%, consolidating hefty, 7.5%, gains garnered in March series.

 

Axis reported mixed set of earnings with NII missing estimates. Ambuja Cement and Vendanta beat estimates on revenue, operating profit and margin front.

 

OUTLOOK

 

Today morning, Nikkei is up 1.8% while Hang Seng and Shanghai are down 0.6% and 0.1% respectively. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had reiterated the view that 16824, the low made last week, continued to be immediate support while 20-DMA, placed around 17450 continued to be immediate hurdle.

 

Nifty soared to touch a high of 17323 before closing at 17245 and is set to open near 17300 today.

 

A crossover of yesterday's high, 17323, would confirm a "Buy" on the hourly chart and would pave the way for further upside till 20-DMA placed around 17440; 16950, around which a trendline adjoining recent bottoms on the hourly chart is place, is the immediate support, upon breach of which, 16824, the low made last week, would be the next downside level to eye.

 

36900 is the immediate hurdle for Banknifty; 35760, 35511 are supports.

 

Maruti Suzui, Ultratech Cement, Wipro and Indusind Bank will report their quarterly earnings today.