NIFTY NEARS CRUCIAL SUPPORT; TRAIL STOP-LOSS TO 16250

 

NIFTY NEARS CRUCIAL SUPPORT; TRAIL STOP-LOSS TO 16250

 

WORLD MARKETS

 

 

Dow and S & P 500 ended modestly lower while Nasdaq inched up 0.1% after a volatile session.

 

Federal Reserve chairman Jerome Powell said that getting inflation under control won’t be easy and warned he could not promise a so-called soft landing for the economy.

 

US 10-year treasury yield fell 7 bps to 2.852%. Dollar index jumped 0.7% to 104.75, hitting highest level after 2002. Spot gold fell 1.6% to $1822 per ounce.

 

Brent crude fell 6 cents to $107.45 while WTI ended 0.4% higher at $106.13.

 

European markets fell 0.6%-1.6%.

 

AT HOME

 

Benchmark indices nosedived 2.2% each, extending the losing streak to fifth straight session and closing at the lowest level after 30th July 2021. Sensex settled at 52930, down 1158 points while Nifty lost 359 points to finish at 15808. Nifty mid-cap index slipped 2.3% to close at the lowest level after 24th June 2021 while the small-cap index fell 1.9% to close at the lowest after 6th May 2021. All the BSE sectoral indices ended in red, with Power and Utilities indices leading the losses, down 4.1% and 3.9% respectively.

 

FIIs net sold stocks, index futures and stock futures worth Rs 2256 cr, 1361 cr and 1274 cr respectively. DIIs were net buyers to the tune of Rs 4816 cr.

 

Rupee depreciated 18 paise to end at 77.42/$.

 

India's retail inflation hit an 8-year high of 7.79% in April, up from 6.95% in March. Core inflation inched up to 7% from 6.4%. Industrial growth, as indicated by IIP, remained lackluster at 1.9% in March, up marginally from 1.5% in February.

 

L&T reported mixed set of numbers with revenue meeting expectation while margin and net profit was a miss. The company guided for 12-15% growth in order inflow and revenue for FY23. Tata Motors' operational performance was weak but better than expected. The guidance was strong.

 

OUTLOOK

 

Today morning, Asian markets are trading with gains of 1%-2.4% and SGX Nifty is suggesting around 150 points higher start for our market.

 

In yesterday's report we had reiterated that 15900 followed by 15671 were downside levels to eye and had advised trailing stop-loss in short positions to 16410.

 

Nifty, after achieving 15900 in the initial trade, plunged further to 15735 before closing at 15808. The benchmark is set to open near 15950 today.

 

15671, the low made in March, is the crucial support to eye; Immediate hurdle on the hourly chart has come down to 16250, with the stop-loss of which, trading shorts can be held on to.

 

For Banknifty, 33297, the low made yesterday, is the immediate support, upon breach of which, 32155, the low made in March, would be the crucial level to eye; 34300-34600 is the resistance zone.

 

SBI, Tech Mahindra and Eicher Motors will report their quarterly earnings today.