18060 BELOW 18202; 18458 CONTINUES TO BE HURDLE

 

WORLD MARKETS

 

Dow fell 0.1% but S & P 500 and Nasdaq gained 0.9% and 1.7% respectively as tech shares, led by Nvidia, surged.

 

Nvidia shares surged 24% after the company posted stronger-than-expected revenue guidance, and reported beats on the top and bottom lines in the recent quarter.

 

Talks between congressional leaders and President Joe Biden advanced yesterday, according to a report from Reuters, which said both parties merely need to agree on $70 billion in spending.

 

Weekly jobless claims rose by 4,000 last week to 229,000, below the estimate of 225,000 while data from the prior week was revised sharply lower, indicating the labor market remains strong. In addition, the second estimate of first-quarter GDP growth confirmed the economy slowed but the 1.3% increase was revised up from the initial 1.1% reading.

 

U.S. 10-year treasury yield rose 8 bps to 3.823%. Dollar index rose 0.3% to 104.21. Gold fell 0.9% to $1940 per ounce.

 

Brent crude futures fell 3.6% to $75.55 a barrel and WTI fell 4% to $71.41 after Russian Deputy Prime Minister Alexander Novak played down the prospect of further OPEC+ production cuts at its meeting next week.

 

European markets fell 0.3%-0.7%. German economy was in recession in the first quarter as GDP fell 0.3%.

 

AT HOME

 

After falling nearly half a percent, benchmark indices surged in late noon trade to end higher by 0.2% each. Sensex settled at 61872, up 98 points while Nifty added 35 points to finish at 18321. Nifty mid-cap and small-cap indices gained 0.4% and 0.1% respectively. Nifty Realty and FMCG indices were the top gainers among the sectoral indices, up 1.1% and 0.6% respectively while PSU Bank and Healthcare indices were the top losers, down 0.4% and 0.2% respectively.

 

FIIs net bought stocks worth Rs 589 cr but net sold index futures and stock futures worth Rs 988 cr and 582 cr respectively. DIIs were net buyers to the tune of Rs 338 cr.

 

Rupee depreciated 8 paise to end at 82.74/$.

 

For the May derivative series, Nifty gained 2.3%.

 

OUTLOOK

 

Hang Kong market is shut today. Nikkei is up 0.8% but Shanghai is off 0.4% and SGX Nifty is suggesting a marginally lower start for our market.

 

In yesterday's report we had said that 18458, the top made last week, continued to be immediate hurdle while 18250-18200 continued to be immediate support zone and trading longs could be held on to with the stop-loss of 18200.

 

Nifty, after touching a low of 18202, rebounded to end at 18321.

 

18202, the low made yesterday, is the immediate support, upon breach of which, 18060, the low made last week, would be next downside level to eye; 18458, the top made last week, continues to be immediate hurdle, a crossover of which is required for a fresh upmove.

 

For Banknifty, 43400 is the immediate support, upon breach of which, 43000-42800 would be next support area; 44151, the top made last week, continues to be immediate hurdle, upon crossover of which, 44800-44900 would be next target area.

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