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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