Monday, May 15, 2023

18447 CONTINUES TO BE UPSIDE LEVEL TO EYE; 18100 IS IMMEDIATE SUPPORT

 

18447 CONTINUES TO BE UPSIDE LEVEL TO EYE; 18100 IS IMMEDIATE SUPPORT

 

WORLD MARKETS

 

Dow ended just below the flat line while S & P 500 and Nasdaq fell 0.2% and 0.4% respectively on Friday on concerns over the U.S. debt ceiling and disappointing economic data.

 

A preliminary reading on the University of Michigan’s consumer sentiment index fell to a six-month low of 57.7, much lower than the estimated reading of 63.0. The survey also showed the outlook for inflation over the next 5 years climbed to 3.2%, the highest clip since June 2008. Import prices rose 0.4% month over month in April, marking the first rise so far in 2023. Expected rise was 0.3% after a decline of 0.8% the prior month.

 

A debt ceiling meeting between President Joe Biden and congressional leaders that was set for Friday was postponed to next week.

 

US 10-year treasury yield rose 8 bps to 3.470%. Dollar index rose 0.6% to 102.70. Gold fell 0.2% to $2011 per ounce.

 

Brent crude futures settled down 1.1% to $74.17 while WTI crude futures fell 1.2% to $70.04.

 

European markets gained 0.3%-0.9%. U.K. GDP showed 0.1% growth in the first quarter of the year, in line with forecasts, but an unexpected 0.3% fall in March as the services sector contracted.

 

The S&P 500 and Dow fell for a second consecutive week, down 0.3% and 1.1%, respectively while the Nasdaq gained 0.4%. Dollar index rose 1.4% for its biggest weekly gain since February and hit one-month peak.

 

AT HOME

 

After falling nearly half a percent in the initial trade, benchmark indices saw a strong rebound through the session to end modestly higher. Sensex settled at 62028, up 123 points while Nifty added 18 points to finish at 18315. Nifty mid-cap and small-cap indices fell 0.4% and 0.8% respectively. Nifty Auto and Bank indices were the top gainers among the sectoral indices, up 0.8% and 0.7% respectively while Metal and Media indices were the top losers, down 1.8% and 1.1% respectively.

 

FIIs net bought stocks and stock futures worth Rs 1014 cr and 5 cr respectively but net sold index futures worth Rs 245 cr. DIIs were net sellers to the tune of Rs 922 cr.

 

Rupee depreciated 7 paise to end at 82.16/$.

 

For the week, Sensex and Nifty gained 1.6% and 1.4% respectively and registered highest weekly close after the week ended 9th December 2022.

 

India's retail inflation, at 4.7%, hit a 18-month low in April. Industrial Production growth fell to 5-month low of 1.1% in March on poor manufacturing performance.

 

Tata Motors reported strong numbers across business with commercial vehicle margin hitting 17-quarter high. DLF too delivered strong numbers with record booking and collections.

 

Congress swept Karnataka, winning 135 seats in the 224-member Assembly. BJP has won 66 seats and the JD(S) 19.

 

OUTLOOK

 

Today morning, Nikkei is up 0.4% but Hang Seng and Shanghai are down 0.1% and 0.3% respectively. SGX Nifty is suggesting around 40 points lower start for our market.

 

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

 

Nifty, after touching a low of 18194, rebounded to end at 18314.

 

18447, the 78.6% retracement level of the entire 18887-16828 fall, is the next upside level target, upon crossover of which, 18887, the all-time high made in December 2022, would be next major level to eye; On the way down, immediate support on the hourly chart is placed around 18100, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44151, the all-time high made in December 2022, is the next target, above which, 44900 would be next upside level to eye; 43300 is the immediate support on the hourly chart, with the stop-loss of which, trading longs can be held on to.

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