18447 IS THE NEXT UPSIDE TARGET; 18100-18050 IS THE SUPPORT AREA

 

18447 IS THE NEXT UPSIDE TARGET; 18100-18050 IS THE SUPPORT AREA

 

WORLD MARKETS

 

Dow fell 0.1% but S & P 500 and Nasdaq rose 0.4% and 1% respectively following a tamer-than-expected inflation report.

 

April consumer prices rose 4.9% y-o-y, which was less than the 5% gain anticipated. Month-over-month inflation matched expectations with a 0.4% increase. However, core inflation remained sticky at 5.5%.

 

US 10-year treasury yield fell 8 bps to 3.443%. Dollar index fell quarter of a percent to 101.41. Gold too fell quarter of a percent to $2029 per ounce.

 

Brent crude dropped 1.3% to $76.41 a barrel while WTI fell 1.6% to $72.56 a barrel.

 

European markets fell 0.3%-0.5%.

 

AT HOME

 

After falling three tenth of a percent in first hour, benchmark indices reversed these losses through the session to end higher by three tenth of a percent. Sensex settled at 61940, up 179 points while Nifty added 49 points to finish at 18315. Nifty mid-cap index was little changed while small-cap index inched up 0.1%. Nifty Media and Realty indices were the top gainers among the sectoral indices, up 1.4% and 0.9% respectively whereas PSU Bank index tumbled 1.1%, becoming top loser, followed by 0.25% lower Metal index.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1833 cr, 321 cr and 123 cr respectively. DIIs were net sellers to the tune of Rs 790 cr.

 

Rupee appreciated 5 paise to end at 81.99/$.

 

OUTLOOK

 

Today morning, Hang Seng and Shanghai are up 0.2% and 0.3% respectively while Nikkei is off 0.2%. SGX Nifty is suggesting around 40 points higher start for our market.

 

In yesterday'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 18050 was the immediate support on the hourly chart, with the stop-loss of which, trading longs could be held on to.

 

Nifty, after touching a low of 18211, rebounded to end at 18315.

 

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

 

For Banknifty, 43740, the top made last week, is the resistance to eye; 42582, the low made last week, is the immediate support. 

 

Asian Paints and Eicher Motors will report their quarterly earnings today.

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