22775 IS THE NEXT TARGET; 22350-22300 IS THE SUPPORT AREA

 

22775 IS THE NEXT TARGET; 22350-22300 IS THE SUPPORT AREA

 

WORLD MARKETS

 

U.S. indices fell 0.5%-1% after the latest economic data showed a sharp slowdown in growth and pointed to persistent inflation.

 

U.S. GDP expanded 1.6% in the first quarter, missing the forecast of 2.4% rise. Also, the personal consumption expenditures price index increased at a 3.4% pace, well above the previous quarter’s 1.8% advance and raised concern over persistent inflation. 

 

Meta plunged 10.5% after issuing light revenue guidance for the second quarter. IBM fell 8.3% after missing consensus estimates for first-quarter revenue.

 

U.S. 10-year treasury yield rose 6 bps to 4.706%. Dollar index fell quarter of a percent to 105.57. Gold rose 0.7% to $2332 per ounce.

 

In Europe, FTSE rose half a percent while DAX and CAC fell 1% each.

 

AT HOME

 

After dipping four tenth of a percent in the initial trade, benchmark indices saw a mammoth rebound through the session and ended with gains of 0.7%-0.8%. Sensex settled at 74339, up 486 points while Nifty added 168 points to finish at 22570. This was the fifth consecutive positive close for both the indices. Nifty mid-cap and small-cap indices gained 0.5% and 0.8% respectively, extending the winning streak to fourth straight day. Except 0.4% and 0.2% lower Consumer Durables and Realty indices respectively, all the NSE sectoral indices ended higher, with PSU Bank index on the top, up 3.8%, followed by 1.6% higher Pharma index.

 

FIIs net sold stocks and index futures worth Rs 2823 cr and 272 cr respectively but net bought stock futures worth Rs 10680 cr. DIIs were net buyers to the tune of Rs 6168 cr.

 

Rupee ended flat at 83.32/$.

 

Bajaj Finance's fourth quarter number missed estimates as cost of funds rises. Indusind Bank reported mixed set of numbers. Tech Mahindra was a beat on revenue while margins were in-line with estimate.

 

OUTLOOK

 

Today morning, Hang Seng is up a percent and half while Nikkei and Shanghai are up 0.4% each. GIFT Nifty is suggesting a modestly 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, continued to be next upside level to eye and had advised holding on to long with the stop-loss of 22200.

 

Nifty, after touching a low of 22305, reversed and surged all the way to 22625 before closing at 22570.

 

22775, the top made on 10th April, is the next upside level to eye; 22350-22300 is the immediate support zone, with the stop-loss of which, trading longs can be held on to.

 

For Banknifty, 49057, the top made on 10th April, is the next upside levels to eye; 47900 is immediate support.

 

HCL Tech, Maruti and Shriram Finance will report their quarterly earnings today.

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