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.