18250-18200 IS THE SUPPORT ZONE; 18458 IMMEDIATE HURDLE

 

18250-18200 IS THE SUPPORT ZONE; 18458 IMMEDIATE HURDLE

 

WORLD MARKETS

 

U.S. indices fell 0.2%-1% on the back of a lackluster forecast from Home Depot and debt ceiling concerns.

 

April retail sales rose 0.4% last month, lower than the 0.8% increase anticipated buy up from a revised negative 0.7% reading of March. Industrial production jumped 1% in April, topping expectations for a flat reading and up slightly from the revised 0.8% increase in March.

 

Home Depot shares fell 2.2% after reporting disappointing quarterly revenue and cutting its full-year guidance.

 

Richmond Fed President Barkin said he was “comfortable” with raising interest rates further if needed to lower inflation. Cleveland Fed chief Mester said the U.S. central bank was not at a point yet where it can hold rates steady for a period of time.

 

U.S. 10-year treasury yield rose 3 bps to 3.54%. Dollar index rose 0.2% to 102.60. Gold plunged 1.4% to $1988 per ounce.

 

Brent crude futures dropped 26 cents to $74.97 a barrel and WTI crude eased 17 cents to $70.94.

 

European markets fell 0.1%-0.3%. U.K. jobless data showed a surprise tick higher. EU employment figures also showed a 0.6% quarterly rise.

 

Earlier, data from China showed that industrial output and retail sales growth undershot forecasts in April.

 

AT HOME

 

Sensex and Nifty fell 0.7% and 0.6% respectively for their second worst fall of the month after 5th May. Sensex settled at 61932, down 413 points while Nifty lost 112 points to finish at 18286. Nifty mid-cap index however gained 0.3% while small-cap index was little changed. Nifty Media and Auto indices were the top losers among the sectoral indices, down 1.4% and 0.9% respectively while PSU Bank and IT indices were the top gainers, up 0.7% and 0.2% respectively. 

 

FIIs net bought stocks and stock futures worth Rs 1407 cr and 83 cr respectively but net sold index futures worth Rs 347 cr. DIIs were net sellers to the tune of Rs 886 cr.

 

Rupee appreciated 9 paise to end at 82.21/$.

 

Bharti Airtel numbers missed topline estimate but margin came better-than-estimate.

 

OUTLOOK

 

Today morning, Nikkei is up 0.6% but Hang Seng and Shanghai are down half a percent each. SGX Nifty is suggesting around 35 points lower start for our market.

 

In yesterday's report we had said that 18550-18600 was the next upside zone to eye for Nifty while immediate support on the hourly chart had moved up to 18200, with the stop-loss of which, trading longs could be held on to.

 

Nifty plunged all the way to 18264 before closing at 18286.

 

18250-18200 is the immediate support zone on the houlry chart, upon breach of which, fall can extend to 18100-18050 area; 18458, the top made Monday, is the immediate hurdle.

 

For Banknifty, 44151 is the immediate hurdle, upon crossover of which, 44900 would be next upside level to eye; 43500 is the immediate support on the hourly chart, upon breach of which 42800-42600 would be next support zone.

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