18447 CONTINUES TO BE UPSIDE LEVEL TO EYE; 18100-18050 IS THE SUPPORT AREA

 

18447 CONTINUES TO BE UPSIDE LEVEL TO EYE; 18100-18050 IS THE SUPPORT AREA

 

WORLD MARKETS

 

Dow and S & P 500 fell 0.7% and 0.2% respectively as Disney shares were under pressure and concerns around regional banks persisted. Nasdaq meanwhile rose 0.2% as Alphabet shares gained near their highest level since August.

 

Disney shares fell more than 8% the day after the media giant released its quarterly results.  PacWest Bancorp plunged 22% after it said in a regulatory filing that deposits fell 9.5% during the week of May 5.

 

The producer price index for April rose 0.2% y-o-y, against estimate for 0.3% and after declining 0.4% in March. Excluding food and energy, core PPI also rose 0.2%. Y-o-y increase stood at 2.3%, which was the smallest rise since January 2021 and followed a 2.7% advance in March. Initial jobless claims grew by 22,000 for the week ending May 6 to 264,000, marking the highest reading since October, 2021.

 

US 10-year treasury yield fell 6 bps to 3.388%. Dollar index rose 0.6% to 102.06. Gold fell 0.7% to $2015 per ounce.

 

Brent crude fell 1.9% to $74.98 a barrel and WTI crude fell 2.3%, to $70.88.

 

FTSE and DAX fell 0.1% and 0.4% respectively but CAC rose 0.3%. The Bank of England delivered a 25 bps rate hike to 4.5% as expected, increasing rates for the 12th consecutive meeting.

 

Consumer prices in China rose 0.1% y-o-y in April, the slowest pace in two years. New Chinese bank loans tumbled far more sharply than expected in April.

 

AT HOME

 

Consolidation continued as benchmark indices ended lower by 0.1% each, marking the third consecutive day of minor changes after rangebound session. Sensex settled at 61904, down 35 points while Nifty lost 18 points to finish at 18297. Nifty mid-cap and small-cap indices however gained 0.3% and 0.5% respectively, with the former extending the winning streak to fourth straight day. Nifty Consumer Durables index was the top gainer among the sectoral indices, up 0.9%, followed by half a percent higher Realty and FMCG indices. Pharma and Healthcare indices were the top losers, down 1.3% and 1.1% respectively.

 

FIIs net bought stocks and stock futures worth Rs 837 cr and 749 cr respectively but net sold index futures worth Rs 669 cr. DIIs were net sellers to the tune of Rs 200 cr.

 

Rupee depreciated 10 paise to end at 82.09/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 0.8% and 0.3% respectively while Shanghai is flat. SGX Nifty is sugggesting around 70 points lower start for our market.

 

In yesterday's report we had said that 18447, the 78.6% retracement level of the entire 18887-16828 fall, was the next upside level to eye while 18100-18050 was the support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a high of 18390, slipped to end at 18297 and is set to open below 18250 today.

 

18447, the 78.6% retracement level of the entire 18887-16828 fall, continues to be next upside level to eye; while 18100-18050 continues to be immediate support area, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 43700-43800 is the immediate resistance zone, upon crossover of which, 44151, the top made in December 2022, would be next upside target; 42800-42600 is the immediate support zone. 

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