STAY LONG WITH THE STOP-LOSS OF 15985

 

STAY LONG WITH THE STOP-LOSS OF 15985

 

WORLD MARKETS

 

US indices surged 1.3%-2.8%, with the Dow rising for the third consecutive session. Sentiment was boosted by Upbeat earnings views from Home Depot and United Airlines along with optimism around the easing of China’s crackdown on tech and Covid-18.

 

Fed Chair Powell said at a Wall Street Journal conference that “no one should doubt our resolve” in getting inflation under control.

 

U.S. retail sales rose 0.9% in April, beating expectation. Excluding autos, retail sales rose 0.6%. Industrial production rose 1.1% in April, better than estimates of 0.5%. Capacity utilization jumped 79% in April, about in line with estimates of 78.5% . Business inventories jumped 2% in March.

 

US 10-year treasury yield jumped 11 bps to 2.995%. Dollar index slipped 0.8% to 103.30, extending the losing streak to third consecutive day. Gold fell half a percent to $1814 per ounce.

 

Brent crude fell 2% to $111.99, and WTI crude settled $1.80, or 1.6%, lower at $112.40 per barrel.

 

European markets rose 0.7%-1.6%. U.K. unemployment fell to its lowest since 1974 in the first quarter, but soaring inflation pushed wages downward. Euro zone GDP grew 0.3% in the first quarter.

 

AT HOME

 

Sensex and Nifty soared 2.5% and 2.6% respectively, registering their biggest one day percentage gain in 3-monnths. Sensex settled at 54318, up 1344 points while Nifty added 417 points to finish at 16259. Nifty mid-cap and small-cap indices climbed 2.7% and 3.4% respectively. All the BSE sectoral indices ended higher, with Metal and Basic Materials indices leading the tally, up 7.6% and 4.3% respectively.

 

FIIs net sold stocks worth Rs 2192 cr but net bought index futures and stock futures worth Rs 1064 cr and 1991 cr respectively. DIIs were net buyers to the tune of Rs 2294 cr.

 

Rupee depreciated 11 paise to end at 77.56/$.

 

India's April WPI inflation came in at a 9-year high of 15.04%, up from 14.55% month-on-month. Core WPI inched up to 11% from 10.9%.

 

OUTLOOK

 

Today morning, Nikkei is up half a percent while Hang Seng and Shanghai are down 0.6% and 0.3% respectively. SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 15671, the low made in March, continued to be the important support while 16250 continued to be immediate hurdle on the hourly chart.

 

Nifty soared to touch a high of 16284 before closing at 16259.

 

16484, the lower end of the gap created by gap-down opening on 6th May, is the next upside target, above which, 16682, the upper end of this gap, would be the next level to eye; 15985 is the immediate support on the hourly chart, upon crossover of which, trading longs can be held on to.

 

34800, 35100 are the upside levels to eye for Banknifty; 33800 is immediate support.