NIFTY ACHIEVES 16644; TRAIL STOP-LOSS TO 16200

 

NIFTY ACHIEVES 16644; TRAIL STOP-LOSS TO 16200

 

WORLD MARKETS

 

US markets were shut yesterday due to the Memorial Day holiday. US futures are up 0.3%-1.1% this morning.

 

European markets gained 0.2%-0.8%. Overall market sentiment was boosted by announcement of relaxation of Covid controls in the major Chinese cities of Beijing and Shanghai from Wednesday.

 

Dollar index fell 0.3% 101.37. Gold inched up 0.2% to $1856 per ounce.

 

Oil rose to two-month high ahead of EU meeting on Russia sanctions. Brent crude rose 2.1% to $121.67 per barrel and WTI jumped 2.2% to $117.64.

 

European markets gained 0.2%-0.8%. Overall market sentiment was boosted by announcement of relaxation of Covid controls in the major Chinese cities of Beijing and Shanghai from Wednesday.

 

German May CPI came in at an annual 8.7%, up from 7.8% in April and ahead of the 8.0% expectation. Euro zone economic sentiment for May inched to 105.0 from 104.9 in April.

 

AT HOME

 

Benchmark indices soared 1.9% each, extending the winning streak to third consecutive day. Sensex settled at 55925, up 1041 points while Nifty added 308 points to finish at 16661. Nifty mid-cap and small-cap indices climbed 2.4% and 3.1% respectively. All the BSE sectoral indices ended in green, with Consumer Durables and Realty indices leading the tally, up 4.4% and 4% respectively.

 

FIIs net bought stocks, index futures and stock futures worth Rs 502 cr, 1806 cr and 1460 cr respectively. DIIs were net buyers to the tune of Rs 1524 cr.

 

Rupee appreciated 3 paise to end at 77.54/$.

 

OUTLOOK

 

Today morning, Asian markets are trading flat to modestly lower and SGX Nifty is suggesting around 30 points lower start for our market.

 

In yesterday's report we had said that 16644, the 38.2% retracement level of the entire 18115-15735 fall, is the next upside level to eye; 16170 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Nifty surged all the way to 16695 before closing at 16661.

 

16925, the 50% retracement level of the entire 18115-15735 fall, is the the next upside target; 16200 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 36084, the top made yesterday, which roughly coincided with the upper band of daily bollinger band, is the immediate hurdle, upon crossover of which 36566, the 61.8% retracement level of the entire 38765-33002 fall, is be the next level to eye; 34800 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

STAY LONG WITH THE STOP-LOSS OF 16170

 

STAY LONG WITH THE STOP-LOSS OF 16170

 

WORLD MARKETS

 

US indices surged 1.8%-3.3% on Friday after data showed the Federal Reserve’s preferred inflation gauge easing slightly in April.

 

The personal consumption expenditures rose 0.2%, the smallest gain since November 2020, after shooting up 0.9% in March. For the 12 months through April, the PCE advanced 6.3% after jumping 6.6% in March. The core personal consumption expenditures price index rose 4.9% in April, down from 5.2% in the previous month.

 

US 10-year treasury yield was flat at 2.743%. Dollar index inched lower by 0.1% to 101.63. Gold inched up 0.1% to $1853 per ounce.

 

Brent crude rose $2.03, or 1.7%, to settle at $119.43 and WTI crude rose 98 cents, or 0.9%, to $115.07 a barrel.

 

European markets gained 0.3%-1.6%.

 

For the week, Dow surged 6.2%, snapping its longest losing streak, eight weeks, since 1923. The S&P 500 and Nasdaq climbed 6.5% and 6.8% respectively, ending seven-week losing streaks. Dow and S & P 500 had their best weeks since November 2020. Dollar index tumbled 1.4% for its second straight fall. Gold rose 0.4% for its second consecutive weekly gain. For the week, Brent rose 6% while WTI gained 1.5%.

 

AT HOME

 

Sensex and Nifty surged 1.2% and 1.1% respectively, extending the winning streak to second straight day. Sensex settled at 54884, up 632 points while Nifty added 182 points to finish at 16352. Nifty mid-cap and small-cap indices climbed 1.4% each. BSE IT and Teck indices were the top gainers among the sectoral indices, up 2.4% and 1.8% respectively whereas Oil & Gas index was the top loser, down 0.9%, followed by 0.5% lower Energy and Metal indices.

 

FIIs net sold stocks worth Rs 1943 cr but net bought index futures and stock futures worth Rs 873 cr and 726 cr respectively. DIIs were net buyers to the tune of Rs 2727 cr.

 

Rupee appreciated 1 paise to end at 77.57/$.

 

For the week, Sensex and Nifty gained 1% and 0.5% respectively, extending the winning streak to second straight week.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 1.8% and 1.2% respectively while Shanghai is little changed. SGX Nifty is suggesting around 140 points higher start for our market.

 

In Friday's report we had said that 16400, around which Nifty had made multiple tops in past fortnight, continued to be important immediate hurdle while 15735, the low made on 12th May, continued to be important immediate support.

 

Nifty surged to touch a high of 16370 before closing at 16352. The benchmark is set to open above 16450 today.

 

On Friday, Nifty closed above its 20-DMA for the first time after 18th April, confirmed a "Buy" on the hourly chart and is set to open above 16400 resistance today.

 

16644, the 38.2% retracement level of the entire 18115-15735 fall, is the next upside level to eye; 16170 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

16400-15735 CONTINUES TO BE BROAD RANGE

 

16400-15735 CONTINUES TO BE BROAD RANGE

 

WORLD MARKETS

 

US indices surged 1.6%-2.7%, with the Dow extending the winning streak to fifth straight day.

 

US first-quarter GDP declined at a 1.5% annual pace, worse than the 1.3% estimate and a writedown from the initially reported 1.4%. Weekly jobless claims totaled 218,000, an increase from the previous period and slightly higher than the 215,000 estimate.

 

US 10-year yield were flat at 2.751%. Dollar index fell 0.3% to 101.76. Gold fell 0.1% to $1850 per ounce.

 

Oil prices surged to a two-month high on signs of tight supply ahead of U.S. summer driving season. Brent futures rose 2.6% to $117.29 a barrel and WTI crude settled 3.1% higher at $114.13 per barrel.

 

European markets gained 0.7%-1.8%. British Finance Minister Rishi Sunak announced a range of measures aimed at tackling the country’s cost-of-living crisis, including a “windfall tax” on the profits of oil and gas giants and cost-of-living payments to low-income households and pensioners.

 

AT HOME

 

After falling three fourth of a percent in the morning, benchmark indices took a U-turn in the afternoon and closed with gains of 0.9% each, snapping a 3-day losing streak. Sensex settled at 54252, up 503 points while Nifty added 144 points to finish at 16170. Nifty mid-cap and small-cap indices rose 1.4% and 0.8% respectively. Except 0.1% lower FMCG index, all the BSE sectoral indices ended in green, with Metal index and Bankex on the top, up 3.4% and 2.2% respectively.

 

FIIs net sold stocks and index futures worth Rs 1598 cr and 626 cr respectively but net bought stock futures worth Rs 2020 cr. DIIs were net buyers to the tune of Rs 2906 cr.

 

Rupee depreciated 5 paise to end at 77.58/4.

 

For the May derivative series, Nifty plunged 6.2%.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 0.6%-2.8% with Hang Seng on the top. SGX Nifty is suggesting nearly 100 points higher start for our market.

 

In yesterday's report we had said that 16003, the low made Friday, continued to be immediate support, upon breach of which, 15735, the low made on 12th May, would be the next downside level to eye.

 

Nifty broke 16003 and plunged all the way to 15903 but rebounded sharply from there to end at 16170. The benchmark is set to open near 16250 today.

 

16400, around which Nifty has made multiple tops in past fortnight, continues to be important immediate hurdle to eye; 15735, the low made on 12th May, continues to be important immediate support.

 

34-DMA, placed around 35500, is the next upside level for Banknifty, above which, 36500-36800 would be the next target zone; 34500 is the immediate support.

 

NIFTY TESTS IMMEDIATE SUPPORT

 

NIFTY TESTS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

US indices ended higher by 0.6%-1.5% after digesting minutes from the latest Fed meeting.

 

Minutes from May Fed meeting showed that officials are prepared to move ahead with several 50 bps interest rate hikes. FOMC also said policy may have to move away from “neutral” and into “restrictive” territory. Data showed new orders for U.S.-made capital goods rose less than expected in April.

 

Nvidia dropped more than 6% in extended trading after the company delivered weaker-than-expected guidance for the second quarter.

 

US 10-year treasury yield was little changed at 2.749%. Dollar index rose 0.3% to 102.07. Gold slipped 0.8% to $1852 per ounce, snapping a five-session winning streak.

 

Brent crude rose 0.6% to $114.37 per barrel and WTI crude inched up 0.4% to $110.67. Natural gas surged above $9 per MMBtu, hitting the highest level in more than a decade.

 

European markets rose 0.5%-1.6%. German GDP grew 0.2% in the first quarter of 2022, narrowly avoiding a recession on the back of strong construction and machinery investments.

 

AT HOME

 

After gaining six tenth of a percent at the open, benchmark indices saw an exact reversal through the session to end lower by six tenth of a percent, extending the losing streak to third straight day. Sensex settled at 53749, down 303 points while Nifty finished at 16025, down 99 points. Nifty mid-cap and small-cap indices tumbled 2.4% and 3.5% respectively, with the latter suffering worst cut in 3-months and closing at the lowest level after 5^th May 2021. Except 0.3% and 0.2% higher Finance and Bankex indices, all the BSE sectoral indices ended in red, with IT and Realty indices leading the losses, down 3.2% and 3% respectively.

 

FIIs net sold stocks worth Rs 1158 cr but net bought index futures and stock futures worth Rs 1158 cr and 164 cr respectively. DIIs were net buyers to the tune of Rs 125 cr.

 

Rupee appreciated 6 paise to end at 77.52/$.

 

Asian Paints tumbled on fears of competition after Grasim Industries doubled the capital expenditure for its foray into the paints business to Rs 10,000 crore.

 

OUTLOOK

 

Today morning, Nikkei is up 0.1% but Hang Seng and Shanghai are down 0.8% and 0.6% respectively. SGX Nifty is suggesting around 90 points higher start for our market.

 

In yesterday's report we had said that 16003, the low made Friday, continued to be immediate support, while 16414, the top made Monday, continued to be immediate hurdle.

 

Nifty, after touching a low of 16006, closed at 16025 and is set to open near 16100 today.

 

16003, the low made Friday, continues to be immediate support, upon breach of which, 15735, the low made on 12th May, would be the next downside level to eye; 16414, the top made Monday, continues to be immediate hurdle.

 

For Banknifty, 34820, the top made Monday, continues to be immediate hurdle, upon crossover of which, 35133, the upper end of the gap created by gap-down opening on 6th May, would be the next upside level to eye; 33658, the low made Friday, is the immediate support, below which, 33000 would be the next downside level to eye.

 

Hindalco and Coal India will report their quarterly earnings today.

16003 CONTINUES TO BE IMMEDIATE SUPPORT; 16415 IMMEDIATE HURDLE

 

16003 CONTINUES TO BE IMMEDIATE SUPPORT; 16415 IMMEDIATE HURDLE

 

WORLD MARKETS

 

After falling a percent and half in the initial trade, Dow reversed and closed higher by 0.2%. S & P 500 and Nasdaq too cut their initial losses but still ended lower by 0.8% and 2.4% respectively as a warning of slowing growth from social media company Snap hurt the tech-heavy index.

 

Snap’s stock price tumbled 43% after the company said it will miss its own earnings and revenue targets.

 

The May reading of the S&P Global U.S. Flash Manufacturing PMI came in at 57.5, just above estimate of 57.4. Flash Services PMI, meanwhile, registered at 53.5, below a consensus forecast of 55.

 

US 10-year treasury yield slipped 10 bps to 2.754%. Dollar index fell 0.3% to 101.77, falling for the sixth session in last eight and hitting one-month low. Gold rose three fourth of a percent to $1866, extending the winning streak to fifth straight day.

 

ECB President Christine Lagarde said she saw the ECB’s deposit rate at zero or “slightly above” by the end of September, implying an increase of at least 50 bps from its current level.

 

Brent crude rose 14 cents to $113.56 a barrel while WTI crude fell 52 cents to settle at $109.77 a barrel.

 

European markets fell 0.4%-1.8%. A flash PMI for the euro zone in May came in at 55.8, slightly ahead of estimates.

 

AT HOME

 

Sensex and Nifty fell 0.4% and 0.6% respectively, extending yesterday's weakness. Sensex settled at 54052, down 236 points while Nifty lost 89 points to finish at 16125. Nifty mid-cap and small-cap indices fell 0.6% and 1.3% respectively. BSE IT and Utilities indices were the top losers among the sectoral indices, down 1.8% and 1.7% respectively. Bankex and Finance indices were the top gainers, up 0.1% each.

 

FIIs net sold stocks and index futures worth Rs 2393 cr and 644 cr respectively while net bought stock futures worth Rs 1778 cr. DIIs were net buyers to the tune of Rs 1948 cr.

 

Rupee depreciated 6 paise to end at 77.58/$.

 

OUTLOOK

 

Today morning, Nikkei is down 0.2% while Hang Seng and Shanghai are up 0.2% and 0.6% respectively. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 16003, the low made Friday, was the immediate support while 16414, the top made Monday, was the immediate hurdle.

 

Nifty touched a low of 16078 before closing at 16125.

 

16003, the low made Friday, continues to be immediate support, upon breach of which, 15735, the low made on 12th May, would be the crucial support; 16414, the top made Monday, continues to be immediate hurdle.

 

For Banknifty, 34820, the top made Monday, is the immediate hurdle, upon crossover of which, 35133, the upper end of the gap created by gap-down opening on 6th May, would be the next upside level to eye; 33658, the low made Friday, is the immediate support, below which, 33000 would be the next downside level to eye.

 

Apollo Hospitals, Coal India and BPCL will report their quarterly earnings today.

 

16003 IS IMMEDIATE SUPPORT; 16414 IMMEDIATE HURDLE

 

16003 IS IMMEDIATE SUPPORT; 16414 IMMEDIATE HURDLE

 

WORLD MARKETS

 

US indices climbed 1.6%-2%, staging a rebound from last week’s steep sell-off, which saw the Dow hit its first eight-week losing streak since 1923, and the S&P 500 briefly fall into bear market territory on an intraday basis.

 

US 10-year treasury yield rose 7 bps to 2.855%. Dollar index tumbled 0.9% to 102. Gold rose 0.4% to $1853 per ounce.

 

WTI crude was little changed at $110.29 a barrel while Brent crude futures settled up 87 cents, or 0.7%, at $113.42.

 

European markets gained 1.2%-1.7%.

 

U.S. President Joe Biden, at a press confidence during his trip in Japan as part of his first Asia tour, said he was considering cutting U.S. tariffs on Chinese goods.

 

AT HOME

 

After gaining just under a percent, Sensex and Nifty nosedived in late noon trade to end lower by 0.1% and 0.3% respectively. Sensex settled at 54288, down 37 points while Nifty lost 51 points to finish at 16214. Nifty mid-cap and small-cap indices slipped 0.4% and 0.8% respectively. BSE Metal index collapsed 8.3%, becoming top loser among the sectoral indices, followed by 4.1% lower Basic Materials index. Auto and Capital Goods indices were the top gainers, up 1.9% and 0.9% respectively.

 

FIIs net sold stocks and index futures worth Rs 1951 cr and 42 cr respectively but net bought stock futures worth Rs 400 cr. DIIs were net buyers to the tune of Rs 1445 cr.

 

Rupee appreciated 3 paise to end at 77.52/$.

 

Steel stocks tumbled while Auto stocks gained following government decision on Saturday to impose 15% export duty on hot-rolled and cold-rolled steel products.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are little changed while Nikkei is down 0.3%. SGX Nifty is suggesting around 50 points higher start for our market.

 

In yesterday's report we had said that 16400, the top made last week, was the next upside level to eye while 16003, the low made Friday, was the immediate support.

 

Nifty, after touching a high of 16414, reversed and plunged all the way to 16185 before closing at 16214.

 

16003, the low made Friday, is the immediate support, upon breach of which, 15735, the low made on 12th May, would be the crucial support; 16414, the top made yesterday, which is now very close to 20-DMA, is the immediate hurdle,  upon crossover of which, 16651, the upper end of the gap created by gap-down opening on 6th May, would be the next upside level to eye.

 

For Banknifty, 34820, the top made yesterday, which coincided with 20-DMA, is the immediate hurdle, upon crossover of which, 35133, the upper end of the gap created by gap-down opening on 6th May, would be the next upside level to eye.

Please click on the link below for Disclaimer

 

https://www.prudentbroking.com/Disclaimert.aspx

NIFTY NEARLY TESTS 17735 SUPPORT; 15985-16211 IS THE RESISTANCE ZONE

 

NIFTY NEARLY TESTS 17735 SUPPORT; 15985-16211 IS THE RESISTANCE ZONE

 

WORLD MARKETS

 

After rising sharply from the initial lower levels, US indices slipped in last hour to end with cuts of 0.3%-0.8%.

 

U.S. weekly jobless claims came in at 218,000 in the week ending May 14, an increase of 21,000 from the previous week.

 

US 10-year treasury yield fell 5 bps to 2.839%. Dollar index tumbled 1% to 102.87. Spot gold rose 1.4% to $1,840.97 per ounce.

 

Brent crude futures for July rose 2.7% to $112.04 per barrel and WTI crude futures for June settled 2.4% higher at $112.21 per barrel.

 

Main European markets saw cuts of 0.9%-1.8%.

 

AT HOME

 

Sensex and Nifty nosedived 2.6% each, suffering worst cut after 7th March and 24th February respectively. Sensex settled at 52792, down 1416 points while Nifty lost 430 points to finish at 15809. Nifty mid-cap and small-cap indices fell 3% and 2.7% respectively. All the BSE sectoral indices ended in red, with IT and Teck indices leading the losses, down 5.2% and 5.1% respectively.

 

FIIs net sold stocks and index futures worth Rs 4900 cr and 921 cr respectively but net bought stock futures worth Rs 44 cr. DIIs were net buyers to the tune of Rs 3226 cr.

 

Rupee depreciated 15 paise to end at 77.73/$.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 1%-2.2% and SGX Nifty is suggesting more than 200 points higher start for our market.

 

In yesterday's report we had said that 15985 continued to be immediate support on the hourly chart, a sustained trading below which would open up the possibility of retest of recent 15735 bottom.

 

Nifty broke 15985 and plunged all the way to 15775 before closing at 15809.

 

15735, the low made last week, followed by 15671, the low made in March, are important supports to eye; 15985-16211, the gap created by yesterday's gap-down opening, would act as the resistance zone.

 

33000, the low made Monday, is the immediate support for Banknifty, upon breach of which, 32155, the low made in March, would be the next downside level to eye; 33633-34134, the gap created by yesterday's gap-down opening, would act as the resistance zone.

 

WATCH OUT FOR FIRST-HOUR LOW

 

WATCH OUT FOR FIRST-HOUR LOW

 

WORLD MARKETS

 

US indices nosedived 3.6%-4.7%, with the Dow falling the most since June 2020  and closing at its lowest since March 2021, after quarterly reports from big retailers stoked concern of rising inflation biting into corporate profits.

 

Quarterly earnings from Target and Walmart showed higher fuel costs and restrained consumer demand hurting performance amid the hottest inflation in decades.

 

US 10-year trasury yield fell 10 bps to 2.89%. Dollar index rose 0.6% to 103.90. Gold was flat at $1816 per ounce.

 

Brent crude fell $2.41 cents, or 2.4%, to $109.52 a barrel, while WTI crude fell $2.5 cents, or 2.2%, to $109.85 a barrel.

 

European markets fell 1.1%-1.3%. U.K. inflation soared to a 40-year high of 9% in April as food and energy prices spiraled.

 

AT HOME

 

After rising just under a percent in the initial trade, benchmark indices gave away all the gains through the session to end marginally in the red. Sensex settled at 54208, down 110 points while Nifty lost 19 points to finish at 16240. Nifty mid-cap and small-cap indices fell 0.2% and 0.4% respectively. BSE Realty and Telecom indices slipped 1.8% and 1% respectively, becoming top losers among the sectoral indices while FMCG and Healthcare indices were the top gainers, up 1.2% and 0.5% respectively.

 

FIIs net sold stocks worth Rs 1255 cr but net bought index futures and stock futures worth Rs 62 cr and 926 cr respectively. DIIs were net buyers to the tune of Rs 376 cr.

 

Rupee depreciated 1 paise to end at 77.58/$.

 

ITC reported mild beat across parameters. Lupin disappointed.

 

OUTLOOK

 

Today morning, Asian markets are trading with cuts of 0.8%-3% with Hang Seng leading the losses and SGX Nifty is suggesting around 300 points lower start for our market.

 

In yesterday's report we had said that 16484, the lower end of the gap created by gap-down opening on 6th May, is the next upside target and had advised holding on to long positions with the stop-loss of 15985.

 

Nifty, after touching a high of 16400, slipped to end at 16240 and is set to open near 16000 today.

 

15985 continues to be immediate support on the hourly chart, upon sustained trading below which (we will watch out for first-hour low for that), would open up the possibility of retest of recent 15735 bottom;

16484, the lower end of the gap created by gap-down opening on 6th May, continues to be upside level to eye.

 

33800 is immediate support for Banknifty, upon sustained trading below which, 33000, the low made Monday, would be the next downside level to eye; 34800 is immediate hurdle.