18135 NEXT; TRAIL STOP-LOSS TO 17750

 

18135 NEXT; TRAIL STOP-LOSS TO 17750

 

WORLD MARKETS

 

US indices surged 1.6%-2.4% as strong results from Meta Platforms boosted tech-related names. It was the best day since January for the Dow and S&P 500 and since March for the Nasdaq.

 

Meta shares surged 14% after the company reported quarterly revenue that topped expectations and issued an upbeat forecast.

 

The advance estimate showed US economy grew at 1.1% in first quarter, missing the estimate of expansion of 2% and down from 2.6% growth in fourth quarter. The report also showed personal consumption expenditures price index, an inflation measure that the Federal Reserve follows closely, jumped 4.2%, ahead of the 3.7% estimate. Core personal consumption expenditure prices rose 4.9%, higher than the consensus figure of 4.7% and up from the fourth quarter figure. Meanwhile, initial claims for state unemployment benefits decreased 16,000 to 230,000 for the week ending April 22, lower than the expected 248,000 figure.

 

US 10-year treasury yield rose 7 bps to 3.524%. Dollar index was flat at 101.48. Gold eased 0.1% to $1987 per ounce.

 

Brent crude futures settled up 60 cents at $78.29 a barrel while WTI crude settled up 51 cents at $74.81 a barrel.

 

In Europe, FTSE fell 0.3% but DAX and CAC gained 0.03% and 0.2% respectively.

 

AT HOME

 

Sensex and Nifty climbed six tenth of a percent each to close at the highest level after 21st and 17th February respectively. Sensex settled at 60649, up 348 points while Nifty added 101 points to finish at 17915. Nifty mid-cap and small-cap indices rose 0.6% and 0.8% respectively. Except 0.1% lower FMCG index, all the NSE sectoral indices ended higher, with Realty and IT indices being the top gainers, up 1.5% and 1.1% respectively.

 

FIIs net bought stocks and stock futures worth Rs 1653 cr and 2154 cr respectively but net sold index futures worth Rs 305 cr. DIIs were net buyers to the tune of Rs 97 cr.

 

Rupee depreciated 7 paise to end at 81.84/$.

 

For the April derivative series, Nifty gained 4.9%.

 

Wipro and Tech Mahindra reported disappointing Q4 earnings. Wipro warned of negative growth in first quarter of new fiscal. The company approved Rs. 12000 cr buyback. Tech Mahindra's deal wins were the lowest in two years and margin hit 23-quarter low. Hindustan Unilever misses mark on all parameters. Axis Bank delivered better-than-expected numbers despite higher provisions for Citi acquisition.

 

OUTLOOK

 

Today morning, Hang Seng is up 1.2% while Nikkei and Shanghai are up 0.7% each. SGX Nifty is suggesting around 80 points higher start for our market.

 

In yesterday's report we had said that 17863, the top made last week, continued to be next upside target, upon crossover of which, 18135, the top made in February, would be next level to eye. We had also said that 17700-17650 was the immediate support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to touch a high of 17931 before closing at 17915. The benchmark is set to open near 18000 today.

 

18135, the top made in February, is the next upside target to eye; Immediate support on the hourly chart has moved up to 17750, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43578, the top made in January, is the next upside level to eye; 42600 is the immediate support area on the hourly chart, with the stop-loss of which, trading longs can be held on to.

 

Ultratech Cement will report its quarterly earnings today.