22562 CONTINUES TO BE NEXT TARGET; 22200-22150 CONTINUES TO BE SUPPORT ZONE

 

22562 CONTINUES TO BE NEXT TARGET; 22200-22150 CONTINUES TO BE SUPPORT ZONE

 

WORLD MARKETS

 

U.S. indices gained 0.7%-1.6% as a strong batch of corporate earnings assuaged concerns over higher rates.

 

The S&P Global Flash U.S. manufacturing PMI came in at 49.9, hitting a four-month low and down from 51.9 in March.

 

U.S. 10-year treasury yield fell 1 bps to 4.602%. Dollar index slipped 0.4% to 105.68. Gold fell 0.2% to $2322 per ounce.

 

WTI crude futures rose 1.8% to $83.36 a barrel and Brent futures rose 1.6% to $88.42 a barrel.

 

European markets rose 0.3%-1.9%. business activity in the euro zone expanded at its fastest pace in nearly a year, primarily due to a recovery in services. BOE officials said they expect inflation to slow back towards the 2% target, and likely stay there.

 

AT HOME

 

Benchmark indices inched up 0.1% each, extending the winning streak to third straight session. Sensex settled at 73738, up 90 points while Nifty added 31 points to finish at 22368. Nifty mid-cap and small-cap indices surged 1.1% and 1.2% respectively, with the latter hitting fresh record high. Nifty Realty index soared 2.6%, becoming top gainer among the sectoral indices, followed by 0.8% higher FMCG index. Pharma and Healthcare indices were the top losers, down 1% each.

 

FIIs net sold stocks and index futures worth Rs 3044 cr and 310 cr respectively but net bought stock futures worth Rs 3208 cr. DIIs were net buyers to the tune of Rs 2919 cr.

 

Rupee appreciated 2 paise to end at 83.34/$.

 

OUTLOOK

 

Today morning, Nikkei and Hang Seng are up 2% and 0.8% respectively while Shanghai is marginally in the red. GIFT Nifty is suggesting around 75 points higher start for our market.

 

In yesterday's report we had said that 22562, the 78.6% retracement level of the recent 22775-21777 fall, was the next upside level to eye while 22200-22150 was the immediate support zone.

 

Nifty, after touching a high of 22447, closed at 22368.

 

22562, the 78.6% retracement level of the recent 22775-21777 fall, continues to be next upside level to eye; 22200-22150 continues to be immediate support zone, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 48527, the 78.6% retracement level of the recent 49057-46579 fall, followed by 49057, the top made on 10th April, are the next upside levels to eye; 47500 is the immediate support.

 

HUL, Axis Bank and LTI Mindtree will report their quarterly earnings today.

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