17574-17863 CONTINUES TO BE IMMEDIATE RANGE

 

WORLD MARKETS

 

US indices fell 0.3%-0.8%, reacting to weak economic data and a mixed bag of corporate earnings, including disappointing results from Tesla.

 

Initial jobless claims rose modestly to 245,000 in the latest week, while the week before was revised to show 1,000 more claims than previously reported. Philadelphia Fed's measure of factory activity in the mid-Atlantic region plunged to the lowest level in nearly three years in April. Existing home sales slid 2.4% to a seasonally-adjusted annual rate of 4.44 million units last month.

 

Tesla shares plunged 10% after the company posted first-quarter net income that declined sharply from the year-ago quarter.

 

US 10-year treasury yield fell 6 bps to 3.534%. Dollar index fell 0.1% to 101.80. Gold rose half a percent to $2004.

 

Brent as well as WTI crude futures fell 2.4% each to settle at $81.10 and $77.29 a barrel respectively.

 

In Europe, FTSE was little changed while DAX and CAC fell 0.6% and 0.1% respectively.

 

AT HOME

 

Benchmark indices ended marginally higher after a choppy session, snapping a 3-day losing streak. Sensex settled at 59632, up 64 points while Nifty added 7 points to finish at 17625. Nifty mid-cap and small-cap indices inched up 0.03% and 0.2% respectively. Nifty Consumer Durables and Bank indices were the top gainers among the sectoral indices, up 0.4% and 0.3% respectively while Pharma and Healthcare indices were the top losers, down 1.1% and 0.9% respectively.

 

FIIs net sold stocks worth Rs 1169 cr but net bought index futures and stock futures worth Rs 476 cr and 913 cr respectively. DIIs were net buyers to the tune of Rs 833 cr.

 

Rupee appreciated 8 paise to end at 82.15/$.

 

OUTLOOK

 

Today morning, Asian markets are little changed and SGX Nifty too is suggesting a flattish start for our market.

 

In yesterday's report we had said that 17574, the low made Monday, continued to be immediate support while 17863, the top made Monday, continues to be immediate hurdle.

 

Nifty, after touching a low of 17584, rebounded to end at 17625.

 

17574, the low made Monday, continues to be immediate support, upon breach of which, 20-DMA, placed around 17400, would be next downside level to eye; 17863, the top made Monday, continues to be immediate hurdle.

 

For Banknifty, 42600, 43000 are the upside targets to eye; 41700 is the immediate support, with the stop-loss of which, trading longs can be held on to.

Reliance Industries will report its quarterly earnings today.