TRAIL STOP-LOSS TO 18040

 

TRAIL STOP-LOSS TO 18040

 

WORLD MARKETS

 

U.S. indices fell 0.5%-0.9%, extending the losing streak to fourth straight day, as contagion fears in the regional bank space continued to weigh on sentiment. Dow turned negative for 2023.

 

Shares of PacWest, a California bank, tanked by more than 50% on news that the  bank has been assessing strategic options, including a possible sale.  Western Alliance tumbled 38%.

 

U.S. 10-year treasury yield rose 4 bps to 3.382%. Dollar index rose 0.2% to 101.44. Gold inched up a third of a percent to $2050 per ounce.

 

ECB delivered a widely expected 25 basis point interest rate hike. This was the smallest hike by ECB since it started lifting rates last summer, but the bank also signaled that more tightening would be needed to tame inflation.

 

Brent futures settled up 17 cents at $72.50 a barrel and WTI crude settled down 4 cents at $68.56.

 

European markets fell 0.5%-1.1%.

 

AT HOME

 

Benchmark indices surged nine tenth of a percent each, posting their best day in a month and closed at the highest level after mid-December 2022. Sensex settled at 61749, up 555 points while Nifty added 165 points to finish at 18255. Nifty mid-cap and small-cap indices gained 0.6% and 0.8% respectively. Except 0.1% lower FMCG index, all the NSE sectoral indices ended higher, with Nifty Financial Services index on the top, up 1.7%, followed by 1.2% higher PSU Bank and Metal indices.

 

FIIs net bought stocks, index futures and stock futures worth Rs 1415 cr, 415 cr and 190 cr respectively. DIIs were net buyers to the tune of Rs 442 cr.

 

Rupee appreciated 1 paise to end at 81.80/$.

 

Hero Motocorp beat expectations all parameters with margins rising 180 bps.

 

OUTLOOK

 

China’s Caixin services PMI for April slipped to 56.4 from March’s reading of 57.8 but remained in expansion while the Caixin manufacturing PMI fell into contraction territory.

 

Nikkei is shut today as well while Hang Seng and Shanghai are up 1% and 0.2% respectively. SGX Nifty is suggesting around 40 points lower start for our market.

 

In yesterday's report we had said that 18252, the top made in January, continued to be next upside target while 17900-17850 continued to be immediate support area, with the stop-loss of which, trading longs could be held on to.

 

Nifty surged to touch a high of 18267 before closing at 18255.

 

18447, the 78.6% retracement level of the entire 18887-16828 fall, is the next big target to eye; Immediate support on the hourly chart has moved up to 18040, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 44151, the top made in December 2022, is the next upside levels to eye; 43100 is the immediate support, with the stop-loss of which, trading longs can be held on to.

 

Britannia, Marico and Bharat Forge will report their quarterly earnings today.